Accounting Policies of Laxmi Dental Ltd. Company

Mar 31, 2025

2 MATERIAL ACCOUNTING POLICIES

2.1 Basis of Preparation

(i) Statement of compliance

The standalone financial statements have been
prepared in accordance with Indian Accounting
Standards (Ind AS) notified under Section 133 of
the Companies Act, 2013 (the "Act") read with the
Companies (Indian Accounting Standards) Rules,
2015 as amended from time to time.

The accounting policies are applied consistently
to all the periods presented in the financial
statements except where a newly issued
accounting standard is initially adopted or revision
to an existing accounting standard where a change
in accounting policy hitherto in use.

These standalone financial statements of the
Company are presented in Indian Rupees (INR),
which is its functional currency and all values
are rounded to the nearest Million except when
otherwise indicated.

The Financial Statements of the Company were
approved and authorized for issue in accordance
with a resolution passed in Board of Directors
meeting held on May 26, 2025.

(ii) Basis of measurement

These Standalone Financial Statements are
prepared in accordance with Indian accounting
standard (Ind As) under the historical cost
convention on accrual basis, except for the
following:

- certain financial assets and liabilities which
are measured at fair value or amortized cost;

- Net defined benefit(asset)/ liability - Fair
value of plan assets less present value of
defined benefit obligation;

(iii) Current versus non-current classification

All assets and liabilities have been classified as
current or non-current as per the Company''s
operating cycle and other criteria set out in the
Schedule III to the Companies Act, 2013. Based
on the nature of products and services and their
realization in cash and cash equivalents, the
Company has ascertained its operating cycle as
12 months for the purpose of current and non¬
current classification of assets and liabilities.

(iv) Going concern

The Company has prepared the standalone
financial statements on the basis that it will
continue to operate as a going concern.

(v) Use of Estimates

The preparation of the Standalone Financial
Information requires management to make
judgments, estimates and assumptions that
affect the application of accounting policies and
the reported amounts of assets, liabilities, income
and expenses. Actual results may differ from
those estimates.

Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period
in which the estimates are revised and in any
future periods affected.

Critical accounting estimates:

a) Useful lives of property, plant and
equipment

The Company reviews the useful life of
property, plant and equipment at the end of
each reporting period. This reassessment
may result in change in depreciation expense
in future periods.

b) Expected credit losses on trade receivables

The impairment provision of trade
receivables is based on assumptions about
risk of default and expected timing of
collection. The Company uses judgment in
making these assumptions and selecting the
inputs to the impairment calculation, based
on the Company''s past history customer''s
creditworthiness, existing market conditions
as well as forward looking estimates at the
end of each reporting period.

c) Defined benefit plans and compensated
absences

The cost of the defined benefit plans,
compensated absences and the present value
of the defined benefit obligation are based
on actuarial valuation using the projected
unit credit method. An actuarial valuation
involves making various assumptions that
may differ from actual developments in the
future. These include the determination of
the discount rate, future salary increases
and mortality rates. Due to the complexities
involved in the valuation and its long-term
nature, a defined benefit obligation is highly
sensitive to changes in these assumptions.
All assumptions are reviewed at each
reporting date.

d) Leases

The Company evaluates if an arrangement
qualifies to be a lease as per the requirements
of Ind AS 116.Identification of a lease requires
significant judgment. The Company uses
significant judgement in assessing the lease
term (including anticipated renewals) and
the applicable discount rate.

The Company determines the lease term
as the non-cancellable period of a lease,
together with both periods covered by an
option to extend the lease if the Company is

reasonably certain to exercise that option; and
periods covered by an option to terminate the
lease if the Company is reasonably certain not
to exercise that option. In assessing whether
the Company is reasonably certain to exercise
an option to extend a lease, or not to exercise
an option to terminate a lease, it considers all
relevant facts and circumstances that create
an economic incentive for the Company to
exercise the option to extend the lease, or not
to exercise the option to terminate the lease.
The Company revises the lease term if there
is a change in the non-cancellable period of a
lease.

The discount rate is generally based on the
incremental borrowing rate.

2.2 Fair Value Measurement

The Company measures financial instruments at fair
value at each balance sheet date. 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 the asset or liability, or

- In the absence of a principal market, in the most
advantageous market for the asset or liability
accessible to the Company.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs. The
Company''s management determines the policies and
procedures for fair value measurement.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorized
into different levels within the fair value hierarchy
described as follows, based on the level of inputs used
in the valuation techniques as set out below.

- Level 1 — Quoted (unadjusted) market prices in
active markets for identical assets or liabilities.

- Level 2 —inputs other than quoted prices included
in level one and Valuation techniques for which
the lowest level input that is significant to the
fair value measurement is directly or indirectly
observable.

- Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is based on unobservable
market data.

2.3 Revenue Recognition

Revenues are derived primarily from the sale of dental
products and dental services. Revenue is measured as
the amount of consideration the Company expects to
receive in exchange for transferring goods or providing
services in accordance with Ind AS 115, Revenues from
Contracts with Customers. Revenue is recognized when
performance obligations are satisfied; this occurs with
the transfer of control of products and services to its
customers, which for products generally occurs when
title and risk of loss transfers to the customer, and for
services generally occurs as the customer receives and
consumes the benefit.

Revenue also excludes taxes collected from customers.

For the products pertaining to Dental Laboratory
Offering and Aligners Solution, the Company transfers
control and recognizes revenue when products are
shipped from the Company''s manufacturing facility
or warehouse to the customer. For contracts with
customers that contain destination shipping terms,
revenue is not recognized until the goods are delivered
to the agreed upon destination. As such, the Company''s
performance obligations related to product sales are
satisfied at a point in time as this is when the customer
obtains the use of and substantially all of the benefit of
the product.

Revenue is measured based on the transaction price,
which is the consideration, adjusted for revenue
reduction due to sales returns. Reversal of revenue
on account of sales returns is considered as variable
consideration. The variable consideration is estimated
at contract inception and constrained until it is highly
probable that a significant revenue reversal in the
amount of cumulative revenue recognized will not
occur when the associated uncertainty with the variable
consideration is subsequently resolved. Estimated
revenue reduction is recognized for expected sales
returns using most likely amount method.

Contract Balances:

Contract Liability:

A contract liability is the obligation to transfer goods
or services to a customer for which the Company has

received consideration (or an amount of consideration
is due) from the customer. If a customer pays
consideration before the Company transfers goods
or services to the customer, a contract liability is
recognized when the payment is made or the payment
is due (whichever is earlier). Contract liabilities are
recognized as revenue when the Company performs
under the contract (i.e., transfers control of the related
goods or services to the customer).

Trade Receivable:

A trade receivable is recognized if an amount of
consideration that is unconditional (i.e., only the
passage of time is required before payment of the
consideration is due).

Other operating income represents income earned
from the activities incidental to the business and is
recognized when the performance obligation is satisfied
and the right to receive the income is established as
per the terms of the contract.

Government grants are accounted when there is
reasonable assurance that the Company will comply
with the conditions attached to them and where there is
a reasonable assurance that the grant will be received.
The Company receives grants related to income and
the same is recognized in the standalone Statement of
Profit and Loss as “other operating income" (Revenue
from operation).

2.4 Inventories

I nventories are valued at the lower of cost and net
realizable value. Cost of inventories comprises all cost
of purchase, cost of conversion and other costs incurred
in bringing the inventories to their present location
and condition. Net realizable 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.

Costs incurred in bringing each product to its present
location and condition are accounted for as follows:

Raw materials:

Cost includes purchase price, (excluding those
subsequently recoverable by the enterprise from the
concerned revenue authorities), freight inwards and
other expenditure incurred in bringing such inventories
to their present location and condition. Cost is
determined on weighted average basis. Raw Materials
are valued at lower of cost and net realizable value
(NRV).

Finished Goods:

Cost includes cost of direct materials and labour and
a proportion of manufacturing overheads based on the
normal operating capacity. The same is valued at lower
of cost and NRV. Cost of Finished goods includes cost
of raw materials, cost of conversion and other costs
incurred in bringing the inventories to their present
location and condition. Cost of inventories is computed
on weighted average basis.

Traded goods:

Cost includes purchase price, (excluding those
subsequently recoverable by the enterprise from the
concerned revenue authorities), freight inwards and
other expenditure incurred in bringing such inventories
to their present location and condition.

Provision for inventory:

Provision of obsolescence on inventories is considered
on the basis of management''s estimate based on
demand and market value of the inventories.

2.5 Property, Plant & Equipment

Property, plant and equipment are stated at cost, less
accumulated depreciation and impairment, if any.
Cost includes expenditures directly attributable to the
acquisition of the asset. Costs directly attributable
to acquisition are capitalized until the property, plant
and equipment are ready for use, as intended by
management.

When parts of an item of property, plant and equipment
have different useful lives, they are accounted for as
separate items (major components) of property, plant
and equipment. Subsequent expenditure relating to
property, plant and equipment is capitalized only when
it is probable that future economic benefits associated
with these 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 discarded/
scrapped. All other repairs and maintenance costs are
charged to profit and loss in the reporting period in
which they occur.

Any gain or loss on disposal of an item of property
plant and equipment is recognized in profit or loss.

(b) Depreciation:

Depreciation is provided, under the Written down
value (WDV) basis, pro rata to the period of use,

based on useful lives specified in Schedule II to
the Companies Act, 2013.

The estimated useful lives, residual values
and depreciation method are reviewed at the
end of each reporting period, with the effect
of any changes in estimate accounted for on a
prospective basis.

The range of useful lives of the Property, Plant
and Equipment are as follows:

2.6 Intangible assets

I ntangible assets are recognized when it is probable
that the future economic benefits that are attributable
to the asset will flow to the Company and the cost of the
asset can be measured reliably. Intangible assets are
stated at original cost net of tax/duty credits availed,
if any, less accumulated amortization and cumulative
impairment. All directly attributable costs and other
administrative and other general overhead expenses
that are specifically attributable to acquisition of
intangible assets are allocated and capitalized as a part
of the cost of the intangible assets.

2.7 Leases

The Company leases most of its office and warehouse
facilities under operating lease agreements that are
renewable on a periodic basis at the option of the
lessor and the lessee. The lease agreements contain
rent escalation clauses.

The Company assesses whether a contract 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 the right to obtain substantially all of the
economic benefits from the use of the asset through
the period of the lease, and (iii) the Company has the
right to direct the use of the asset.

At the date of commencement of the lease, the
Company recognizes a ROU asset and a corresponding
lease liability for all lease arrangements under which it
is a lessee, except for short-term leases and low value
leases. ROU assets represent the Company''s right to
use an underlying asset for the lease term and lease
liabilities represent the Company''s obligation to make
lease payments arising from the lease. The Company
has elected not to apply the requirements of Ind AS
116 Leases to short-term leases of all assets that
have a lease term of 12 months or less and leases for
which the underlying asset is of low value. The lease
payments associated with these leases are recognized
as an expense on a straight-line basis over the lease
term.

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

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

ROU assets are depreciated from the date of
commencement of the lease on a straight-line basis
over the shorter of the lease term and the useful life of
the underlying asset.

The lease liability is initially measured at amortized
at the present value of the future lease payments.
The Company uses its incremental borrowing rate
(as the interest rate implicit in the lease is not readily
determinable) based on the information available at the
date of commencement of the lease in determining the
present value of lease payments. The lease liability is
subsequently remeasured by increasing the carrying
amount to reflect interest on the lease liability
reducing the carrying amount to reflect the lease

payments made. Lease liabilities are remeasured with
a corresponding adjustment to the related ROU asset if
the Company changes its assessment as to whether it
will exercise an extension or a termination option.

2.8 Investment Properties

Properties held to earn rentals are classified as
investment property and are measured and reported
at cost, including transaction costs, in accordance with
the Company''s accounting policy. Policies with respect
to depreciation, useful life and derecognition are on the
same basis as stated in PPE above.

I nvestment properties are measured initially at cost,
including transaction costs. Subsequent to initial
recognition, investment properties are stated at cost
less accumulated depreciation and accumulated
impairment loss, if any.

The Company, based on technical assessment made
by technical expert and management estimate,
depreciates the building over estimated useful lives
(20-40 years) which are different from the useful life
prescribed in Schedule II to the Companies Act, 2013.
The management believes that these estimated useful
lives are realiztic and reflect fair approximation of the
period over which the assets are likely to be used.

Though the Company measures investment properties
using cost based measurement, the fair value of
investment property is disclosed in the notes. Fair
values are determined based on an annual evaluation
performed by an accredited external independent
valuer applying a valuation model recommended by the
International Valuation Standards Committee.

Investment properties are derecognized either

when they have been disposed off or when they are
permanently withdrawn from use and no future
economic benefit is expected from their disposal. The
difference between the net disposal proceeds and the
carrying amount of the asset is recognized in profit
or loss in the period of derecognition. In determining
the amount of consideration from the derecognition
of investment properties the Company considers
the effects of variable consideration, existence
of a significant financing component, non-cash
consideration, and consideration payable to the buyer
(if any).

Rent receivable is recognized on a straight-line basis
over the period of the lease.

2.9 Financial Instruments
(a) Financial Assets

(i) Classification

The Company classifies its financial assets in
the following measurement categories:

- those to be measured subsequently at
fair value through profit and loss, and

- those measured at amortized cost

The classification depends on the entity''s
business model for managing the financial
assets and the contractual cash flow
characteristics.

(ii) Initial recognition

All financial assets are recognized initially at
fair value plus, in the case of financial assets
not recorded at fair value through profit or
loss, transaction costs that are attributable
to the acquisition of the financial asset. Trade
receivables are measured at transaction
price.

(iii) Measurement

Subsequent to initial recognition, financial
assets are measured as described below:

Cash and Cash equivalents:

The Company''s cash and cash equivalents
consist of cash on hand and in banks and
demand deposits with banks (three months
or less from the date of acquisition). For
the purposes of the cash flow statement,
cash and cash equivalents include cash on
hand, in banks and demand deposits with
banks (three months or less from the date
of acquisition), net of outstanding bank
overdrafts that are repayable on demand
and are considered part of the Company''s
cash management system. In the balance
sheet, bank overdrafts are presented under
borrowings within current liabilities.

Financial assets carried at amortized cost:

A financial asset is subsequently measured
at amortized cost if it is held within a business
model whose objective is to hold the asset in
order to collect contractual cash flows and
the contractual terms of the financial asset
give rise on specified dates to cash flows that

are solely payments of principal and interest
on the principal amount outstanding.

Financial assets at fair value through other
comprehensive income (FVOCI):

A financial asset is subsequently measured
at fair value through other comprehensive
income if it is held within a business
model whose objective is achieved by both
collecting contractual cash flows and selling
financial assets and the contractual terms
of the financial asset give rise on specified
dates to cash flows that are solely payments
of principal and interest on the principal
amount outstanding. Further, in cases where
the Company has made an irrevocable
election based on its business model, for its
investments which are classified as equity
instruments, the subsequent changes in fair
value are recognized in other comprehensive
income.

Financial assets at fair value through profit
or loss (FVTPL)

A financial asset which does not meet
the amortized cost or FVTOCI criteria is
measured as FVTPL. Financial assets at
FVTPL are measured at fair value at the end
of each reporting period, with any gains or
losses on re-measurement recognized in
statement of profit or loss. The gain or loss
on disposal and interest income earned on
FVTPL is recognized.

(iv) Impairment of Financial Assets

The Company assesses at each date of
balance sheet whether a financial asset or a
Company of financial assets is impaired. Ind
AS 109 requires expected credit losses to be
measured through a loss allowance.

I n determining the allowances for doubtful
trade receivables, the Company has used
a practical expedient by computing the
expected credit loss allowance for trade
receivables based on a provision matrix.
The provision matrix takes into account
historical credit loss experience and is
adjusted for forward looking information.
The expected credit loss allowance is based
on the ageing of the receivables that are due
and rates used in the provision matrix. The

application of simplified approach does not
require the Company to track changes in
credit risk. Rather, it recognizes impairment
loss allowance based on lifetime ECLs at
each reporting date, right from its initial
recognition.

For all other financial assets, expected credit
losses are measured at an amount equal
to the 12-month expected credit losses on
a forward looking basis. However, if the
credit risk on the financial instruments
has increased significantly since the initial
recognition, then the Company measures
lifetime ECL.

The amount of ECL (or reversal) that is
required to adjust the loss allowance at the
reporting date is recognized as an impairment
gain/loss under “ Other Expenses ” in the
Standalone Statement of Profit and Loss.

(v) Derecognition of Financial Assets

The Company derecognizes a financial asset
when

- the contractual rights to the cash flows
from the financial asset expire or it
transfers the financial asset and the
transfer qualifies for derecognition
under IND AS 109.

- the Company retains contractual rights
to receive the cash flows of the financial
asset but assumes a contractual
obligation to pay the cash flows to one
or more recipients.

When the entity has neither transferred a
financial asset nor retained substantially all
risks and rewards of ownership of the financial
asset, the financial asset is derecognized if
the Company has not retained control of the
financial asset. Where the Company retains
control of the financial asset, the asset
is continued to be recognized to extent of
continuing involvement in the financial asset.

(b) Financial Liabilities:

(i) Initial recognition and measurement

Financial liabilities are classified as financial
liabilities at amortized cost. All financial
liabilities are recognized initially at fair
value, except in the case of borrowings

which are recognized at fair value, net of
directly attributable transaction costs.
The Company''s financial liabilities include
trade and other payables, bank overdrafts,
borrowings and lease liabilities.

(ii) Subsequent measurement

After initial recognition, interest bearing
borrowings are subsequently measured at
amortized cost using the effective interest
rate method.

(iii) Derecognition

Financial liabilities are derecognized when
the contractual obligations are discharged,
cancelled or expired. The Company also
derecognizes financial liabilities when their
terms are modified and the cash flows of the
modified liabilities are substantially different,
in which case new financial liabilities based
on the modified terms are recognized at fair
value.

2.10 Employee Benefits

(a) Short-term obligations

Liabilities for salaries, wages and bonus, that are
expected to be settled wholly within 12 months
after the end of the year in which the employees
render the related service are recognized in
respect of employees services up to the end of the
reporting year 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.

(b) Compensated absences

The Company provides for the encashment of
leave or leave with pay subject to certain rules.
The employees are entitled to accumulate leave
subject to certain limits, for future encashment.
The liability is provided based on number of days
of unutilized leave at each balance sheet date
based on an estimated basis for the period end
and on an independent actuarial valuation under
Projected Unit Cost method at the year end.

(c) Defined benefit plan

Employees are entitled to a defined benefit
retirement plan (i.e. Gratuity) covering eligible
employees of the Company. The plan provides
for a lump-sum payment to eligible employees,
at retirement, death, and incapacitation or

on termination of employment, of an amount
based on the respective employees'' salary
and tenure of employment. Vesting occurs
upon completion of five years of service.
Gratuity liabilities are determined by actuarial
valuation, performed by an independent actuary, at
each reporting date using the projected unit credit
method. The Company recognizes the obligation
of a defined benefit plan in its balance sheet as
a liability in accordance with IAS 19 - “Employee
Benefits." The discount rate is based on the
government securities yield. Re-measurements,
comprising actuarial gains and losses are
recorded in other comprehensive income in the
period in which they arise. Re-measurements
recognized in other comprehensive income is
reflected immediately in retained earnings and
is not reclassified to profit or loss. Past service
cost is recognized in the Statement of Profit
and Loss in the period of plan amendment.
Costs comprising service cost (including current
and past service cost and gains and losses on
curtailments and settlements) and net interest
expense or income is recognized in profit or loss.

2.11 Share Based Payments

Share-based compensation benefits are provided to
the employees via the Share based long term incentive
scheme.

The cost of equity-settled transactions is determined
by the fair value at the date when the grant is made
using an appropriate valuation model. That cost is
recognized, together with a corresponding increase
in share options outstanding account in equity, over
the period in which the performance and/or service
conditions are fulfilled in employee benefits expense.
The cumulative expense recognized for equity-settled
transactions at each reporting date until the vesting
date reflects the extent to which the vesting period
has expired and the Company''s best estimate of the
number of equity instruments that will ultimately vest.
The expense or credit in the statement of profit and loss
for a period represents the movement in cumulative
expense recognized as at the beginning and end of that
period and is recognized in employee benefits expense.

The dilutive effect of outstanding options is reflected as
additional share dilution in the computation of diluted
earnings per share.

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Mar 31, 2024

1 Corporate Information

Laxmi Dental Limited (''the Company'') was incorporated as ''Laxmi Dental Export Private Limited’ as a private limited company under the Companies Act, 1956 pursuant to a certificate of incorporation dated July 8, 2004, issued by the Assistant Registrar of Companies, Maharashtra at Mumbai. Pursuant to a special resolution passed in the extra-ordinary general meeting of Shareholders held on 18 June 2024, the name of our Company was changed to ‘Laxmi Dental Private Limited’, and a fresh certificate of incorporation was issued to the Company by the RoC on 24 July 2024, and the Company was converted into a public limited company. Consequently, the name of the Company was further changed to ‘Laxmi Dental Limited’, and a fresh certificate of incorporation dated 02 August 2024, was issued by the RoC. The registered office of the Company is located at 103, Akruti Arcade , Opposite A H Wadia high School, Near Azad Nagar Metro Station , Andheri (West) , Mumbai -400053.

2 Material Accounting Policies

2.1 Basis of Preparation

(i) Statement of compliance

The standalone financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the "Act'''') read with the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time.

The standalone financial statements up to year ended 31 March 2023 were prepared in accordance with the accounting standards notified under the section 133 of the Act, read with with paragraph 7 of the Companies (Accounts) Rules, 2014 ("Indian GAAP'', "previous GAAP"). These standalone financial statements for the year ended 31 March 2024 are the first set of financial statements prepared in accordance with Ind AS. The date of transition to Ind AS is 01 April 2022 (hereinafter referred to as the ‘transition date’).

The standalone financial statements for the year ended 31 March 2023 and the opening Balance Sheet as at 01 April 2022 have been restated in accordance with Ind AS for comparative information. Reconciliations and explanations of the effect of the transition from Previous GAAP to Ind AS on the Company''s Balance Sheet and Statement of Profit and Loss (including Other Comprehensive Income) are provided in Note 4.

Theses standalone financial statements of the Company are presented in Indian Rupees (INR), which is its functional currency and all values are rounded to the nearest millions except when otherwise indicated.

(ii) Basis of measurement

These Standalone Financial Statememts are prepared in accordance with Indian accounting standard (Ind As) under the historical cost convention on accrual basis, except for the following:

- certain financial assets and liabilities which are measured at fair value or amortised cost;

- Net defined benefit(asset)/ liability - Fair value of plan assets less present value of defined benefit obligation;

(iii) Current versus non-current classification

All assets and liabilities have been classified as current or non-current as per the Company''s operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and services and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

(iv) Going concern

The Company has prepared the standalone financial statements on the basis that it will continue to operate as a going concern.

(v) Use of Estimates

The preparation of the Standalone Financial Information requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from those estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

Critical accounting estimates:

a) Useful lives of property, plant and equipment

The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.

b) Expected credit losses on trade receivables

The impairment provision of trade receivables is based on assumptions about risk of default and expected timing of collection. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Company''s past history, customer''s creditworthiness, existing market conditions as well as forward looking estimates at the end of each reporting period.

c) Defined benefit plans and compensated absences

The cost of the defined benefit plans, compensated absences and the present value of the defined benefit obligation are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

d) Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116.Identification of a lease requires significant judgment. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate.

The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate.

2.2 Revenue Recognition

Revenues are derived primarily from the sale of dental products and dental services. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services in accordance with Ind AS 115, Revenues from Contracts with Customers. Revenue is recognized when performance obligations are satisfied; this occurs with the transfer of control of products and services to its customers, which for products generally occurs when title and risk of loss transfers to the customer, and for services generally occurs as the customer receives and consumes the benefit.

Revenue also excludes taxes collected from customers.

For the products pertaining to Dental Laboratory Offering and Aligners Solution, the Company transfers control and recognizes revenue when products are shipped from the Company''s manufacturing facility or warehouse to the customer. For contracts with customers that contain destination shipping terms, revenue is not recognized until the goods are delivered to the agreed upon destination. As such, the Company''s performance obligations related to product sales are satisfied at a point in time as this is when the customer obtains the use of and substantially all of the benefit of the product.

Revenue is measured based on the transaction price, which is the consideration, adjusted for revenue reduction due to sales returns. Reversal of revenue on account of sales returns is considered as variable consideration. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. Estimated revenue reduction is recognised for expected sales returns using most likely amount method.

Contract Balances:

Contract Liability:

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

Trade Receivable:

A trade receivable is recognised if an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due).

Other operating income represents income earned from the activities incidental to the business and is recognised when the performance obligation is satisfied and the right to receive the income is established as per the terms of the contract.

Government grants are accounted when there is reasonable assurance that the Company will comply with the conditions attached to them and where there is a reasonable assurance that the grant will be received. The Company receives grants related to income and the same is recognised in the standalone Statement of Profit and Loss as "other operating income” (Revenue from operation).

2.3 Inventories

Inventories are valued at the lower of cost and net realizable value. Cost of inventories comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Net realizable 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.

Cqsts incurred in bringing each product to its present location and condition are accounted for as follows:

Raw materials:

Cost includes purchase price, (excluding those subsequently recoverable by the enterprise from the concerned revenue authorities),freight inwards and other expenditure incurred in bringing such inventories to their present location and condition. Cost is determined on weighted average basis. Raw Materials are valued at lower of cost and net realisable value (NRV).

Finished Goods:

Cost includes cost of direct materials and labour and a proportion of manufacturing overheads based on the normal operating capacity. The same is valued at lower of cost and NRV. Cost of Finished goods includes cost of raw materials, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost of inventories is computed on weighted average basis.

Traded goods:

Cost includes purchase price, (excluding those subsequently recoverable by the enterprise from the concerned revenue authorities),freight inwards and other expenditure incurred in bringing such inventories to their present location and condition.

Provision for inventory:

Provision of obsolescence on inventories is considered on the basis of management’s estimate based on demand and market of the inventories.

2.4 Property, Plant Et Equipment

(a) Recognition and Measurement:

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Cost includes expenditures directly attributable to the acquisition of the asset. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by management.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Subsequent expenditure relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these 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 derecognised when discarded/scrapped. All other repairs and maintenance costs are charged to profit and loss in the reporting period in which they occur.

Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss.

(b) Depreciation:

Depreciation is provided, under the Written down value (WDV) basis, pro rata to the period of use, based on useful lives specified in Schedule II to the Companies Act, 2013.

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

The range of useful lives of the Property, Plant and Equipment are as follows:

Assets	Useful economic life (in Years)
Building	60
Furniture and fixtures	10
Office Equipments	5
Vehicle	8 to 10
Computers	3 to 6
Plant & machinery	13 to 15

2.5 Leases

The Company leases most of its office and warehouse facilities under operating lease agreements that are renewable on a periodic basis at the option of the lessor and the lessee. The lease agreements contain rent escalation clauses.

The Company assesses whether a contract 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 the right to obtain substantially all of the economic benefits from the use of the asset through the period of the lease, and (iii) the company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognises a ROU asset and a corresponding tease liability for all lease arrangements under which it is a lessee, except for short-term leases and low value leases. ROU assets represent the Company''s right to use an underlying asset for the lease term and lease liabilities represent the Company''s obligation to make lease payments arising from the lease. The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognized as an expense on a straight line basis over the lease term.

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

The ROU 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 of the lease plus any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.

ROU assets are depreciated from the date of commencement of the lease on a straight-line basis over the shorter of the lease term and the useful life of the underlying asset.

The lease liability is initially measured at amortised at the present value of the future lease payments. The Company uses its incremental borrowing rate (as the interest rate implicit in the lease is not readily determinable) based on the information available at the date of commencement of the lease in determining the present value of lease payments. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made. Lease liabilities are remeasured with a corresponding adjustment to the related ROU asset if the Company changes its assessment as to whether it will exercise an extension or a termination option.

2.6 Investment properties

Properties held to earn rentals are classified as investment property and are measured and reported at cost, including transaction costs, in accordance with the Company''s accounting policy. Policies with respect to depreciation, useful life and derecognition are on the same basis as stated in PPE above.

2.7 Financial Instruments

(a) Financial Assets

(i) Classification

The Company classifies its financial assets in the following measurement categories:

- those to be measured subsequently at fair value through profit and loss, and

- those measured at amortised cost

The classification depends on the entity''s business model for managing the financial assets and the contractual cash flow characteristics.

(ii) Initial recognition

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Trade receivables are measured at transaction price.

(iii) Measurement

Subsequent to initial recognition, financial assets are measured as described below:

Cash and cash equivalents:

The Company''s cash and cash equivalents consist of cash on hand and in banks and demand deposits with banks (three months or less from the date of acquisition). For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, in banks and demand deposits with banks (three months or less from the date of acquisition), net of outstanding bank overdrafts that are repayable on demand and are considered part of the Company’s cash management system. In the balance sheet, bank overdrafts are presented under borrowings within current liabilities.

Financial assets carried at amortised cost:

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value through other comprehensive income (FVOCI):

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Further, in cases where the Group has made an irrevocable election based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognized in other comprehensive income.

Financial assets at fair value through profit or loss (FVTPL)

A financial asset which does not meet the amortized cost or FVTOCI criteria is measured as FVTPL. Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses on re-measurement recognized in statement of profit or loss. The gain or loss on disposal and interest income earned on FVTPL is recognized.

(iv) Impairment of financial assets

The Company assesses at each date of balance sheet whether a financial asset or a Company of financial assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance.

In determining the allowances for doubtful trade receivables, the Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and rates used in the provision matrix. The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment toss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

For all other financial assets, expected credit losses are measured at an amount equal to the 12-month expected credit losses on a forward looking basis. However, if the credit risk on the financial instruments has increased significantly since the initial recognition, then the Company

The amount of ECL (or reversal) that is required to adjust the loss allowance at the reporting date is recognised as an impairment gain/loss under " Other Expenses ” in the Standalone Statement of Profit and Loss.

(v) Derecognition of financial assets

The Company derecognises a financial asset when

- the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under IND AS 109.

- the Company retains contractual rights to receive the cash flows of the financial asset but assumes a contractual obligation to pay the cash flows to one or more recipients.

When the entity has neither transferred a financial asset nor retained substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to extent of continuing involvement in the financial asset.

(b) Financial liabilities:

(i) Initial recognition and measurement

Financial liabilities are classified as financial liabilities at amortised cost. All financial liabilities are recognized initially at fair value, except in the case of borrowings which are recognised at fair value, net of directly attributable transaction costs. The Company’s financial liabilities include trade and other payables, bank overdrafts, borrowings and lease liabilities.

(ii) Subsequent measurement

After initial recognition, interest bearing borrowings are subsequently measured at amortised cost using the effective interest rate method.

(iii) Derecognition

Financial liabilities are derecognised when the contractual obligations are discharged, cancelled or expired. The Company also derecognises financial liabilities when their terms are modified and the cash flows of the modified liabilities are substantially different, in which case new financial liabilities based on the modified terms are recognized at fair value.

2.8 Employee benefits

(a) Short-term obligations

Liabilities for salaries, wages and bonus, that are expected to be settled wholly within 12 months after the end of the year in which the employees render the related service are recognised in respect of employees services up to the end of the reporting year 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

(b) Compensated absences

The Company provides for the encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits, for future encashment. The liability is provided based on number of days of unutilized leave at each balance sheet date based on an estimated basis for the period end and on an independent actuarial valuation under Projected Unit Cost method at the year end.

(c) Defined benefit plan

Employees are entitled to a defined benefit retirement plan (i.e. Gratuity) covering eligible employees of the Company. The plan provides for a lump-sum payment to eligible employees, at retirement, death, and incapacitation or on termination of employment, of an amount based on the respective employees’salary and tenure of employment. Vesting occurs upon completion of five years of service.

Gratuity liabilities are determined by actuarial valuation, performed by an independent actuary, at each reporting date using the projected unit credit method. The Company recognises the obligation of a defined benefit plan in its balance sheet as a liability in accordance with IAS 19 -“Employee Benefits.” The discount rate is based on the government securities yield. Re-measurements, comprising actuarial gains and losses are recorded in other comprehensive income in the period in which they arise. Re-measurements recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss. Past service cost is recognised in the Statement of Profit and Loss in the period of plan amendment.

Costs comprising service cost (including current and past service cost and gains and losses on curtailments and settlements) and net interest

2.9 Provisions and expenses

A provision is recognised when the Company has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Costs and expenses are recognised when incurred and have been classified according to their nature.

2.10 Income taxes

Income tax comprises of current tax and deferred tax.

a. Current Tax

Current income tax for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the taxable profit for the period. The tax rates and tax laws used to compute the amount are those that are enacted by the reporting date and applicable for the period. The Company offsets current tax assets and current tax liabilities where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realise the asset and liability simultaneously.

b. Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Balance Sheet and their tax bases. Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible temporary differences and incurred tax losses to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

The Company recognises deferred tax liabilities for all taxable temporary differences except those associated with the investments in subsidiaries where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.

3 Recent accounting pronouncements:

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated 31 March 2023 to amend the following Ind AS which are effective for annual periods beginning on or after 1 April 2023. The company has applied these amendments for the first-time in these financial statements.

(a) (i) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant'' accounting policies with a requirement to disclose their ''material¹ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments have had an impact on the disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the financial statements.

(ii) New standards and amendments issued but not effective

There are no standards that are notified and not yet effective as on the date.

(b) Amendments to Ind AS 12 - Deferred Tax related to Assets and Liabilities arising from a Single Transaction

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases.

The Company previously recognised for deferred tax on leases on a net basis. As a result of these amendments, the Company has recognised a separate deferred tax asset in relation to its lease liabilities and a deferred tax liability in relation to its right-of-use assets. Since, these balances qualify for offset as per the requirements of paragraph 7A of Ind AS 12,there is no impact in the balance sheet. There was also no impact on the opening retained earnings as at 1 April 2022.

(c) Amendments to Ind AS 8 - Definition of Accounting Estimates

The amendments clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

4 First-Time Adoption Of Ind As

The Company has adopted Indian Accounting Standards ("Ind AS”) notified under Section 133 of the Companies Act, 2013 (‘the Act'') read with the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time with the effective date of such transition is April 1, 2022. Such transition has been carried out from the erstwhile Accounting Standards notified under the Act, read with relevant rules issued thereunder (“Collectively referred to as “the Previous GAAP”).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on March 31, 2024, together with the comparative period data as at and for the year ended March 31, 2023, as described in the summary of material accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at April 1, 2022, the Company’s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Previous GAAP financial statements, including the balance sheet as at April 1, 2022 and the financial statements as at and for the year ended March 31, 2023.

4.1 Ind AS optional exemptions

(i) Deemed cost for property, plant and equipment and intangible assets

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statement as at the date of transition to Ind AS, measured as per previous GAAP and used that as its deemed cost as at the date of transition after making necessary adjustment for decommissioning liabilities. Accordingly, the Company has elected to measure all of its property, plant and equipment at their previous GAAP carrying value as at transition date.

The Company has elected to measure intangible assets at the previous GAAP carrying amount as its deemed cost on the date of transition to Ind (il) Classification and Measurement of Financial Assets

The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind AS.

(iii) Leases

The Company has applied the modified retrospective approach in applying Ind AS 116.

4.2 Ind AS mandatory exceptions

(i) Classification and measurement of financial assets and liabilities

Ind AS 101 requires an entity to assess classification of financial assets and liabilities on the basis of facts and circumstances existing as at the date of transition. Further, the standard permits measurement of financial assets and liabilities accounted at amortized cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable. Accordingly, the Company has determined the classification of financial assets and liabilities based on facts and circumstances that exist on the date of transition. Measurement of financial assets and liabilities accounted at amortized cost has been done retrospectively except where the same is impracticable.

(ii) Estimates

On assessment of the estimates made under the previous GAAP financial statements, the Company has concluded that there is no necessity to revise the estimates under Ind AS, as there Is no objective evidence of an error in those estimates. However, estimates that were required under Ind AS but not required under previous GAAP are made by the Company for the relevant reporting dates reflecting conditions existing as at that date. Key estimates considered in preparation of financial statements that were not required under the previous GAAP are listed below:

- Determination of the discounted value for financial instruments carried are amortized cost.

- Determination of impairment allowance (ECL) on trade receivables.

(iii) Impairment of financial assets

At the date of transition to Ind AS, determining whether there has been a significant increase in credit risk since the initial recognition of a financial asset would require undue cost or effort, the Company has recognised a loss allowance at an amount equal to lifetime expected credit losses at each reporting date until that financial instrument is derecognised.

4.3 The following reconciliations provide a quantification of the effect of transition from previous GAAP to Ind AS As Required Under Ind AS 101

(a) Reconciliation of total Equity as at 1 April 2022 and as at 31 March 2023

(b) Reconciliation of total comprehensive income for the year ended 31 March 2023

(c) Impact of Ind AS adoption on the statement of cash flows for the year ended 31 March 2023