Accounting Policies of Midwest Ltd. Company

Mar 31, 2025

2. Material accounting policies

2.1. Basis of preparation and measurement.

(i) Statement of Compliance and Basis for preparation

The standalone financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under
Section 133 of Companies Act, 2013 (the ‘Act’), the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other relevant
provisions of the Act.

The standalone financial statements have been prepared on a going concern basis. The accounting policies are applied consistently to all the
periods presented in the standalone financial statements except where a newly issued accounting standard is initially adopted or a revision to an
existing accounting standard requires change in accounting policy hitherto in use.

(ii) Functional and presentation currency

These standalone financial statements are presented in Indian Rupees ( ? ), which is also the Company’s functional currency. All financial
information presented in Indian rupees have been rounded-off to two decimal places to the nearest Million except where otherwise stated.

(iii) Basis of measurement

The financial information have been prepared on the historical cost basis except for the following items:

- Certain financial assets and liabilities : Measured at fair value

- Financial instruments : Fair value through profit or loss.

- Net defined benefit liability : Present value of defined benefit obligations

(iv) Use of estimates and judgements

The preparation of the standalone financial statements is in conformity with Ind AS requires management to make estimates, judgements and
assumptions. These estimates, judgments and assumptions affect the application policies and reported amounts of the assets and liabilities, the
disclosure of contingent assets and liabilities at the date of standalone financial statements and reported amounts of revenue and expenses during
the year. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in the
estimates are made as and when management becomes aware of changes in circumstances surrounding the estimates. Changes in the estimates are
reflected in the standalone financial statements in the year in which the changes are made and, if material, such effects are disclosed in the notes to
0 standalone financial statements.

Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next
financial year are included in the following notes:

- Note 3, 4, 5 and 6 - determining an asset’s expected useful life and the expected residual value at the end of its life

- Note 7 and 13 - impairment of financial assets;

- Note 38 - measurement of defined benefit obligations: key actuarial assumptions;

- Notes 39 - recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow of
resources;

(v) Measurement of fair values

Accounting polices and disclosures require measurement of fair value for financial assets and financial liabilities.

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.

The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the
assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best
interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value,
maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

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

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly
(i.e. derived from prices).

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has
occurred.

Further information about the assumptions made in the measuring fair values is included in the following notes:

- Note 43 - Financial instruments

(vi) Current and non-current classification:

The Schedule III to the Act requires assets and liabilities to be classified as either current or non-current. The Company presents assets and
liabilities in the balance sheet based on current/ non-current classification.

(a) Assets

An asset is classified as a current when it is:

- it is expected to be realized in, or is intended for sale or consumption in, the Company’s normal operating cycle;

- it is expected to be realized within twelve months from the reporting date;

- it is held primarily for the purposes of being traded; or

- 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.

(b) Liabilities

A liability is classified as a current when:

- it is expected to be realized in, or is intended for sale or consumption in, the Company’s normal operating cycle;

- it is due to be settled within twelve months from the reporting date;

- it is held primarily for the purposes of being traded;

- the Company does not have an unconditional right to defer settlement of liability for at least twelve months from the reporting date.

All other liabilities are classified as non-current.

Deferred tax assets/liabilities are classified as non current.

(c) Operating Cycle

Operating cycle is the time between the acquisition of assets for processing and realization in cash or cash equivalents. The Company has
ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

2.2. Summary of material accounting policies

(a) Revenue recognition

Revenue from contract with customers

The majority of the company’s revenue is derived from selling goods with revenue recognised at a point in time when control of the goods has
transferred to the customer. This is generally when the goods are delivered to the customer. However, for export sales, control might also be
transferred when delivered either to the port of departure or port of arrival, depending on the specific terms of the contract with a customer. There
is limited judgement needed in identifying the point control passes: once physical delivery of the products to the agreed location has occurred, the
company no longer has physical possession, usually will have a present right to payment (as a single payment on delivery) and retains none of the
significant risks and rewards of the goods in question.

The Company satisfies a performance obligation and recognises revenue over time, if one of the following criteria is met:

i. the customer simultaneously receives and consumes the benefits provided by the Company’s performance as the Company performs; or

ii. the Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or

iii. the Company’s performance does not create an asset with an alternative use to the Company and an entity has an enforceable right to payment
for performance completed to date.

For performance obligations where one of the above conditions are not met, revenue is recognised at the point in time at which the performance
obligation is satisfied.

In respect of contracts involving bill-and hold arrangements, the Company determines whether the control of the underlying products have been
transferred to the customer. For the purpose of determining whether such control is transferred, the entity considers the following requirements as
required by Ind AS 115:

i. The reason for the bill-and-hold arrangement is substantive (i.e. the physical possession with the entity is pursuant to the customer’s
explicit request);

ii. The product is separately identified as belonging to the customer;

iii. The product is ready for physical transfer to the customer; and

iv. The entity does not have the ability to use the product or to direct it to another customer.

The Company recognizes revenue in respect of bill-and-hold arrangements only when all of the aforementioned requirements are met. Further, at
the time of such recognition, the entity also determines whether there are any material unsatisfied performance obligations and determines the
portion of the aggregate consideration, if any, that needs to be allocated and deferred.

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

Other income - Interest income

Interest income is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured
reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is
the rate that discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial
recognition. Interest income is included under the head ‘other income’ in the statement of profit and loss.

Other income - Dividend income

Dividend income is recognised when the Company’s right to receive the payment is established, which is generally, when shareholders approve
the dividend.

(b) Borrowing costs

Borrowing costs are capitalised, net of interest received on cash drawn down yet to be expended when they are directly attributable to the
acquisition, contribution or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale.

(c) T axation

Income-tax comprises current and deferred tax. It is recognized in profit or loss except to the extent that it relates to an item recognized directly in
equity or in other comprehensive income.

(i) Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or
receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after
considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the
reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognized amounts, and it is
intended to realize the asset and settle the liability on a net basis or simultaneously.

(ii) Deferred tax

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the corresponding amounts used for taxation purposes. Deferred tax is not recognized for:

- temporary differences arising on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects
neither accounting nor taxable profit or loss at the time of the transaction; and

- temporary differences related to investments in subsidiaries to the extent that the Company is able to control the timing of the reversal of the
temporary differences and it is probable that they will not reverse in the foreseeable future;

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

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on tax
laws and rates that have been enacted or substantively enacted at the reporting date.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company
expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities

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.