Meenakshi (India) Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

B. Material Accounting policies

The significant accounting policies applied in the preparation of these financial statements are set out below. These
policies have been applied consistently to all periods presented in the financial statements, except where a newly
issued Ind AS has been applied for the first time or a revision to an existing Ind AS requires a change in the accounting
policy hitherto adopted.

1) Statement of Compliance:

The Financial Statements have been prepared in accordance with the accounting principles generally accepted in
India, including Indian Accounting Standards ("Ind AS”) prescribed under Section 133 of the Companies Act, 2013,
read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time), and the
presentation requirements of Division II of Schedule III to the Companies Act, 2013 (Ind AS compliant Schedule III), as
applicable to the Company.

Accordingly, the Company has prepared these Financial Statements which comprise the Balance Sheet as at March 31,
2026, the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of Changes in Equity for the
year ended on that date, together with the material accounting policies and other explanatory information (hereinafter
collectively referred to as the "Financial Statements”). These Financial Statements were approved for issue by the Board
of Directors on May 29, 2026.

All amounts have been rounded off to the nearest lakh, unless otherwise indicated.

2) Basis of preparation and presentation of Financial Statements

The Financial Statements have been prepared on the historical cost basis, except for certain financial instruments,
including investments and foreign exchange forward contracts, which are measured at fair value at the end of each
reporting period, as explained in the accounting policies below.

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, regardless of whether that price is directly observable or
estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes
into account the characteristics of the asset or liability that market participants would take into account when pricing
the asset or liability at the measurement date.

For financial reporting purposes, fair value measurements are categorised into Levels 1, 2 and 3 based on the degree
to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value
measurement as a whole, as described below:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company
can access at the measurement date;

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

• Level 3 inputs are unobservable inputs for the asset or liability.

3) Current and non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current / non-current classification. An asset
is classified as current when it satisfies any of the following criteria:

• it is expected to be realised in, or is intended for sale or consumption in, the Company''s normal operating cycle;

• it is held primarily for the purpose of being traded;

• it is expected to be realised within twelve months after the reporting date; or

• it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting date.

All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria:

• it is expected to be settled in the Company''s normal operating cycle;

• it is held primarily for the purpose of being traded;

• it is due to be settled within twelve months after the reporting date; or

• the Company does not have the right, at the end of the reporting period, to defer settlement of the liability for at

least twelve months after the reporting date.

All other liabilities are classified as non-current.

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

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

4) Revenue Recognition

Revenue from contracts with customers is recognised when control of the goods or services 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. To recognise revenue, the Company applies the following five-step approach: (i) identify the
contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction
price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognise revenue when
the performance obligation is satisfied.

Revenue from sale of goods is recognised upon transfer of control of the promised goods to the customer in accordance
with the terms of the contract. Revenue is measured at the transaction price, net of returns and allowances, trade
discounts, rebates and other similar deductions, wherever applicable. Goods and Services Tax collected on behalf of
the Government is excluded from revenue. In respect of export sales, revenue is recognised when control of the goods
is transferred to the customer in accordance with the terms of sale and the relevant shipping terms.

Export incentives are recognised in the year of exports based on eligibility under the applicable schemes of the
Government of India, when there is reasonable assurance that the Company will comply with the conditions attached
thereto and there is no significant uncertainty regarding receipt of such incentives.

a. Revenue from sale of goods

Revenue from sale of goods is recognised when the goods are delivered and control is transferred to the customer
in accordance with the terms of sale. Revenue towards satisfaction of a performance obligation is measured at the

transaction price allocated to that performance obligation, net of variable consideration such as discounts, rebates,
incentives and expected returns.

Goods and Services Tax (GST) and other similar taxes collected on behalf of the Government are excluded from revenue,
since they are not economic benefits flowing to the Company.

Sales are presented in the Statement of Profit and Loss net of returns, trade discounts, rebates and applicable indirect
taxes.

b. Interest, Dividend and Claimsi. Dividend Income

Dividend income is recognised when the Company''s right to receive payment is established and it is probable that the
economic benefits will flow to the Company.

ii. Interest Income

Interest income from financial assets is recognised using the Effective Interest Rate (EIR) method. The EIR is the rate that
exactly discounts the estimated future cash receipts through the expected life of the financial asset, or a shorter period
where appropriate, to the net carrying amount of the financial asset.

c. Insurance Claims and Other Claims

Insurance claims and other claims are accounted for when admitted by the insurer / party or when the right to receive
is established and there is no significant uncertainty regarding collection.

5) Foreign Currency Transactions

a) Presentation currency

Items included in the Financial Statements of the Company are measured using the currency of the primary economic
environment in which the Company operates ("the functional currency”). These Financial Statements are presented in
Indian Rupees (''), which is also the functional currency of the Company.

b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the
exchange rates prevailing at the reporting date. Exchange differences arising on settlement or translation of monetary
items are generally recognised in the Statement of Profit and Loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange
rates prevailing at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency
are translated using the exchange rates prevailing at the date when the fair value is determined. The gain or loss arising
on translation of such non-monetary items is recognised in line with the gain or loss arising from the change in fair
value of the respective item.

Exchange differences on foreign currency borrowings, to the extent regarded as an adjustment to borrowing costs, are
accounted for as finance costs, as applicable. All other foreign exchange differences are recognised in the Statement of
Profit and Loss.

6) Leases:

The Company''s lease asset classes primarily consist of leases for factory and office premises. The Company assesses
whether a contract is, or contains, a lease at the inception of the contract. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To
assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i)
the contract involves the use of an identified asset; (ii) the Company has substantially all of the economic benefits from
use of the asset throughout the period of the lease; and (iii) the Company has the right to direct the use of the asset.

At the commencement date of the lease, the Company recognises a right-of-use asset ("ROU asset”) and a corresponding
lease liability for all lease arrangements, except for leases with a term of twelve months or less (short-term leases) and
leases of low-value assets. For such short-term and low-value leases, the Company recognises the lease payments as an
expense on a straight-line basis over the lease term.

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

The lease liability is initially measured at the present value of the lease payments to be made over the lease term. The
lease payments are discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined,
using the Company''s incremental borrowing rate. Subsequently, the lease liability is increased to reflect the accretion
of interest and reduced for lease payments made. Lease liabilities are remeasured with a corresponding adjustment to
the related ROU asset when there is a change in the lease term or a change in the assessment of an option to extend
or terminate the lease.

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted
for any lease payments made at or prior to the commencement date, plus any initial direct costs, less any lease incentives
received. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease
term and the useful life of the underlying asset. Right-of-use assets are evaluated for impairment whenever events or
changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment
testing, the recoverable amount, being the higher of fair value less costs of disposal and value in use, is determined on
an individual asset basis unless the asset does not generate cash inflows that are largely independent of those from
other assets. In such cases, the recoverable amount is determined for the cash-generating unit ("CGU”) to which the
asset belongs.

7) Income Tax:

Income tax expense comprises current tax and deferred tax. Current and deferred tax are recognised in the Statement
of Profit and Loss, except when they relate to items that are recognised in Other Comprehensive Income ("OCI") or
directly in equity, in which case the related tax is also recognised in OCI or directly in equity, respectively.

a) Current Tax

Current tax is the amount of income tax payable on the taxable profit for the year, determined in accordance with the
provisions of the Income-tax Act, 1961. The Company has opted for the concessional tax regime under Section 115BAA
of the Act and, accordingly, current tax is computed using the tax rate prescribed under the said regime. Current tax
assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities,
based on the tax rates and tax laws that have been enacted or substantively enacted at the reporting date.

b) Deferred Tax

Deferred tax is recognised using the balance sheet approach on temporary differences between the tax bases of assets
and liabilities and their carrying amounts in the Financial Statements. Deferred tax liabilities are generally recognised for
all taxable temporary differences, and deferred tax assets are recognised for deductible temporary differences, unused
tax credits and unused tax losses to the extent that it is probable that sufficient future taxable profits will be available
against which they can be utilised.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively
enacted at the reporting date and are expected to apply when the related deferred tax asset is realised or the deferred
tax liability is settled, considering the Company''s continued option to be taxed under Section 115BAA.

The carrying amount of deferred tax assets is reviewed at each reporting date 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 deferred tax asset to be
utilised. Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has
become probable that future taxable profits will allow the deferred tax asset to be recovered.

c) Offsetting

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against
current tax liabilities, and when they relate to income taxes levied by the same taxation authority on the same taxable
entity. Current tax assets and liabilities are also offset when the Company intends to settle them on a net basis or to
realise the asset and settle the liability simultaneously.

8) Employee Benefits:

a) Short-term Employee Benefits

All employee benefits payable wholly within twelve months after the end of the period in which the employees render
the related services are classified as short-term employee benefits. Such employee benefits are recognised as an
expense as and when the related services are rendered.

b) Post-Employment Benefits:

i. Defined Contribution Plans

The Company''s contributions to Provident Fund and Employees'' State Insurance ("ESI”) are charged to the Statement
of Profit and Loss during the period in which the employees render the related services. The Company has no further
obligation other than the contributions payable to the respective funds.

ii. Defined Benefit Plans

c) Gratuity

The gratuity liability is provided for based on actuarial valuation carried out at the end of each financial year using the
projected unit credit method in accordance with Ind AS 19 - Employee Benefits.

Remeasurements comprising actuarial gains and losses are recognised in the period in which they occur directly in Other
Comprehensive Income and are included in retained earnings in the Statement of Changes in Equity. Remeasurements
recognised in Other Comprehensive Income are not reclassified to the Statement of Profit and Loss in subsequent
periods.

9) Property Plant & Equipment:

Freehold land is carried at historical cost and is not depreciated. Property, plant and equipment are stated at cost
less accumulated depreciation and accumulated impairment losses, if any. For this purpose, cost includes deemed
cost on the date of transition to Ind AS and comprises the purchase price or construction cost, including duties and
taxes, net of GST / other credits availed, inward freight and other expenses directly attributable to bringing the asset
to the location and condition necessary for it to be capable of operating in the manner intended by management.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalised
in accordance with the Company''s accounting policy on borrowing costs.

Parts of an item of property, plant and equipment having significant cost and different useful lives are accounted for as
separate components and depreciated separately over their respective useful lives.

Subsequent expenditure is recognised in the carrying amount of an asset or as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the expenditure will flow to the Company and the
cost can be measured reliably. The carrying amount of any component replaced is derecognised. Costs of day-to-day
repairs and maintenance are recognised in the Statement of Profit and Loss as incurred.

Capital work-in-progress includes expenditure incurred on property, plant and equipment under construction
/ installation and other directly attributable expenditure. Such costs are transferred to the respective categories of
property, plant and equipment when the assets are ready for their intended use.

10) Depreciation & Amortization:

Depreciation on property, plant and equipment is provided on a straight-line basis over the estimated useful lives of
the assets. The useful lives and residual values are generally in accordance with those prescribed under Schedule II
to the Companies Act, 2013, except where, based on technical assessment, management has estimated useful lives
different from those prescribed in Schedule II.

Depreciation on additions to / disposals of property, plant and equipment is provided from / up to the date the asset is
available for use / derecognised, as applicable. In case of impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life.

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

Right-of-use assets are depreciated in accordance with the accounting policy on leases.

The estimated useful lives of property, plant and equipment, based on management''s assessment and technical
evaluation, wherever applicable, are as follows:

11) Intangible Assets:

Intangible assets are stated at cost of acquisition, comprising the purchase price, including import duties, if any, and
other directly attributable costs, less accumulated amortisation and impairment losses, if any. Intangible assets with
finite useful lives are amortised on a straight-line basis over their estimated useful lives.

Cost of computer software packages, including directly attributable costs, if any, acquired for internal use is amortised on
a straight-line basis over a period of three years, being the estimated useful life thereof. The useful life and amortisation
method are reviewed at each financial year end and changes, if any, are accounted for prospectively as changes in
accounting estimates.

12) De-recognition of Tangible and Intangible Assets:

An item of property, plant and equipment or an intangible asset is derecognised upon disposal or when no future
economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition is determined as the
difference between the net disposal proceeds and the carrying amount of the asset and is recognised in the Statement
of Profit and Loss.

13) Impairment of Tangible and Intangible Assets

Property, plant and equipment, intangible assets and right-of-use assets are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such indication exists, the recoverable amount of the
asset or cash-generating unit ("CGU"), as applicable, is estimated.

An impairment loss is recognised in the Statement of Profit and Loss whenever the carrying amount of an asset or
CGU exceeds its recoverable amount. The recoverable amount is the higher of fair value less costs of disposal and
value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using an
appropriate discount rate.

An impairment loss recognised in prior periods is reversed when there has been a change in the estimates used to
determine the recoverable amount. Such reversal is recognised in the Statement of Profit and Loss to the extent that the
revised carrying amount does not exceed the carrying amount that would have been determined, net of depreciation
or amortisation, had no impairment loss been recognised in prior periods.

14) Non-Current Assets held for sale

The Company classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered
principally through a sale transaction rather than through continuing use. The criteria for held-for-sale classification are
regarded as met only when the asset or disposal group is available for immediate sale in its present condition, subject
only to terms that are usual and customary for sales of such assets or disposal groups, and its sale is highly probable.

A sale is considered highly probable when:

the appropriate level of management is committed to a plan to sell the asset or disposal group;

an active programme to locate a buyer and complete the plan has been initiated, where applicable;

the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair
value;

the sale is expected to qualify for recognition as a completed sale within one year from the date of classification; and

actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that
the plan will be withdrawn.

Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount
and fair value less costs to sell and are presented separately in the Balance Sheet. Property, plant and equipment and
intangible assets are not depreciated or amortised once classified as held for sale. Refer Note 16.1 for further disclosures,
where applicable.

A discontinued operation is a component of the Company that has either been disposed of or is classified as held for
sale and:

represents a separate major line of business or geographical area of operations; or

is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations.

15) Inventories:

Raw materials, packing materials, stores, spares and consumables are valued at the lower of cost and net realisable
value. Cost includes the cost of purchase and other costs incurred in bringing the inventories to their present location
and condition and is determined on a weighted average basis. However, materials and other items held for use in the
production of inventories are not written down below cost if the finished products in which they will be incorporated
are expected to be sold at or above cost.

Work-in-progress and finished goods are valued at the lower of cost and net realisable value. Cost includes direct
materials and labour and a proportion of manufacturing overheads based on normal operating capacity, but excludes
borrowing costs. Cost is determined on a weighted average basis. Provision for obsolescence and other anticipated
losses is made wherever considered necessary.

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.