Standard Surfactants Ltd. कंपली की लेखा नीति

Mar 31, 2025

2) Material Accounting Policies:

The material accounting policies applied by the Company in the preparation of its financial statements are listed
below. Such accounting policies have been applied consistently to all the periods presented in these financial
statements unless otherwise indicated.

i. Basis of preparation and presentation

a) Compliance with Ind AS

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified
under section 133 of the Companies Act, 2013 (the Act) read with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 (as amended) and relevant amendment rules thereafter and accounting
principles generally accepted in India.

b) Recent pronouncements

During the year the Ministry of Corporate Affairs (MCA) announced amendment to Companies (Indian
Accounting Standards) Rules, 2015. These amendments included an introduction of new IND AS 117 “
Insurance Contracts “and replaces current Ind AS 104 with consequential amendments in Ind AS 101
“First-time Adoption of Ind AS” , Ind AS 103 “Business Combinations” , Ind AS 105” Non-Current Assets
Held for Sale and Discontinued Operations”, Ind AS 107 “Financial Instruments: Disclosures”, Ind AS 109
“Financial Instruments” and Ind AS 115 “Revenue from Contracts with Customers” to align the with Ind AS
117. Further, amendments in Ind AS 116 “Leases” is made to provide guidance on Sale and Leaseback
Transactions. These amendments are not relevant to the company

Ministry of Corporate Affairs (MCA) notifies new standard or amendments to the existing standards. There
is no such notification which would have been applicable from April 1, 2025.

c) Basis of preparation

These financial statements have been prepared on going concern basis using the significant accounting
policies and measurement bases summarized below. Accounting Policies have been consistently applied
except where a newly issued accounting standard is initially adopted or a revision to an existing accounting
standard requires a change in accounting policy hitherto in use. In those cases the new accounting policy is
adopted in accordance with the transitional provisions stipulated in that Ind AS and in absence of such
specific transitional provision, the same is adopted retrospectively for all the periods presented in these
financial statements.

The financial statements have been prepared on the historical cost basis except for certain financial assets
and liabilities (refer accounting policy regarding financial instruments) that are measured at fair values at
the end of each reporting period, assets for defined benefit plans that are measured at fair value, assets
held for sale which are measured at lower of cost and fair value less cost to sell as explained further in notes
to financial statements.

d) Functional and presentation currency

The financial statements are presented in Indian rupees (?), which is company''s functional currency. All
amounts have been rounded off to nearest lakhs and two decimal places unless otherwise indicated.

e) Operating Cycle

All assets and liabilities has been classified as current and non-current as per the Company''s normal
operating cycle criteria set out below which are in accordance with the Schedule III to the Act. Based on the
nature of services and time between the acquisition of assets for providing of services and their realisation
in Cash and Cash equivalent, the Company has ascertained its operating cycle as 12 months for the purpose
of current/non-current classification of assets and liabilities.

ii. Current versus non-current classification

The company presents assets and liabilities in the balance sheet based on current/ non-current
classification.

An asset is treated as current when it satisfies any of the following criteria:

• Expected to be realised or intended to be sold or consumed in the normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after the reporting date, or

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

Current assets include the current portion of non-current financial assets. All other assets are classified as
non-current.

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

• Expected to be settled in the company’s normal operating cycle;

• Held primarily for the purpose of trading;

• Due to be settled within twelve months after the reporting date; or

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

• Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of
equity instruments does not affect its classification.

Current liabilities include the current portion of non-current financial liabilities. All other liabilities are
classified as non-current.

The Company has ascertained its operating cycle as twelve months for the purpose of current and non¬
current classification of assets and liabilities.

iii. Property, plant and equipment & capital work-in-progress

Property, plant and equipment are tangible items that are held for use in the production or supply for goods
and services, rental to others or for administrative purposes and are expected to be used during more than
one period.

The cost of an item of property, plant and equipment is being recognised as an asset if and only if it is
probable that future economic benefits associated with the item will flow to the Company and the cost of
the item can be measured reliably. Subsequent costs are included in the asset’s carrying amount only
when it is probable that future economic benefits associated with the item will flow to the entity and the
cost of the item can be measured reliably.

Freehold lands are stated at cost. All other items of property, plant and equipment are stated at cost, net
of recoverable taxes/duty credit availed less accumulated depreciation, and accumulated impairment loss,
if any.

The cost of an asset includes the purchase cost of assets, including import duties and non-refundable
taxes, and any directly attributable costs of bringing an asset to the location and condition of its intended
use. For this purpose, cost includes carrying value as Deemed cost on the date of transition. Interest on
borrowings used to finance the construction of qualifying assets are capitalised as part of the cost of the
asset until such time that the asset is ready for its intended use.

Items of spare parts, stand-by equipment and servicing equipment which meet the definition of property,
plant and equipment are capitalized. Other spare parts are carried as inventory and recognized in the
statement of profit and loss on consumption. When parts of an item of PPE have different useful lives, they
are accounted for as separate component.

The carrying amount of the replaced part is derecognized on disposal or when no future economic benefits
are expected from its use or disposal. When a significant part of property, plant and equipment are required
to be replaced at intervals, the company derecognizes the replaced part and recognise the new part with
its own associated life and it is depreciated accordingly. Likewise when a major repair is performed, its
cost is recognised in the carrying amount of the plant and equipment as a replacement, if the recognition
criteria are satisfied. All other repair and maintenance costs are recognised in the Statement of Profit and
Loss as incurred.

The present value of the expected cost for the decommissioning of an asset after its use, if any, is included
in the cost of the respective asset if the recognition criteria for a provision are met.

The cost and related accumulated depreciation are eliminated from the financial statement upon sale or
retirement of the asset and resultant gain or loss are recognized in the Statement of Profit and Loss.

Assets identified and technically evaluated as obsolete are retired from active use and held for disposal
and are stated at the lower of its carrying amount and fair value less cost to sell.

Capital work-in-progress, representing expenditure incurred in respect of assets under development and
not ready for their intended use, is carried at cost. Cost includes related acquisition expenses, construction
costs, related borrowing costs and other direct expenditures.

iv. Intangible assets

Intangible assets are recognized when it is probable that the future benefits that are attributable to the
assets will flow to the Company and the cost of the assets can be measured reliably.

Research costs are expensed as incurred. Development expenditures on an individual project are
recognised as an intangible asset when the company can demonstrate:

a) The technical feasibility of completing the intangible assets so that the asset will be available for use or
sale. b)Its intention to complete and its ability and intention to use or sale the assets.

c) How the asset will generate future economic benefits

d) The availability of resources to complete the asset.

e) The ability to measure reliably the expenditure during development.

During the period of development, the asset is tested for impairment annually.

Intangible assets acquired separately including patents and licenses, are measured on initial recognition
at cost/deemed cost. Following initial recognition, intangible assets are carried at cost less accumulated
amortisation and accumulated impairment losses, if any. Amortisation of the assets begins when the asset
is available for use.

The useful life of intangible assets asre assessed as either finite or indefinite. Intangible assets with finite
lives are amortized over the useful economic life and assessed for impairment whenever there is an
indication that the intangible asset may be impaired.The amortization period and the amortization method
for an intangible assets with a finite useful life are reviewed atleast at the end of each reporting period.
Changes in the expected useful life or the expected pattern of consumption of future economic benefits
embodied in the assets are considered to modify the amortization period or method, as appropriate , and
are treated as changes in accounting estimates.

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually,
either individually or at cost generating unit level. The assessment of indefinite life is reviewed annually to
determine whether the indefinite life continues to be supportable. If not, the change in useful life from
indefinite to finite is made on prospective basis.

Internally generated intangible assets, excluding capitalized development costs, are not capitalized and
expenditure is reflected in the statement of profit and loss in the year in which the expenditure is incurred.

Internally generated intangible assets, excluding capitalized development costs, are not capitalized and
expenditure is reflected in the statement of profit and loss for the year in which the expenditure is incurred.

An intangible asset is derecognized on disposal, or when no future economic benefits are expected from
its use. Gains or losses arising from derecognition of an intangible asset, measured as the difference
between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss
when the asset is derecognized. Deemed cost is carrying amount under the previous GAAP as at transition
date.

v. Depreciation and amortization

The classification of plant and machinery into continuous and non-continuous process is done as per their
use and depreciation thereon is provided accordingly. Depreciation commences when the assets are
available for their intended use. Depreciation is calculated using the straight-line method to allocate their
cost, net of their residual values, over their estimated useful lives.

The management has estimated the useful lives and residual values of all property, plant and equipment
and adopted useful lives as stated in Schedule II of the Companies Act, 2013.

Intangible assets with finite life are amortized over the period of 5 to 10 years on straight line basis based
on the expected pattern of consumption of future economic benefits embodied in the assets.

vi. Foreign currency translations
Transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency spot rate prevailing at
the date the transaction first qualifies for recognition.

Monetary assets and liabilities related to foreign currency transactions remaining outstanding at the
balance sheet date are translated at the functional currency spot rate of exchange prevailing at the
balance sheet date. Any income or expense arising on account of foreign exchange difference either on
settlement or on translation is recognised in the Statement of Profit and Loss.

Non-monetary items which are carried at historical cost denominated in a foreign currency are translated
using the exchange rate at the date of the initial transaction. Non-monetary items which are measured at
fair value in a foreign currency are translated using the exchange rates at the date when fair value is
determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated
in line with the recognition of the gain or loss on the change in fair value of item.

vii. Inventories

(i) Raw materials, spares and consumables are valued at Cost on FIFO basis.

(ii) Traded Goods are valued at lower of cost or net realizable value. The cost is determined on FIFO
basis.

(iii) Finished Goods and Work in progress are valued at Lower of cost of production or net realizable
value.

Cost is determined on FIFO basis.

Cost of inventories comprises all costs of purchase and other cost incurred in bringing the inventories to
their present location and condition. Cost of production comprises of cost of direct materials, cost of
labour, manufacturing overheads, and a portion of fixed cost, based on the normal operating capacities.
Duties and taxes those are subsequently recoverable from the taxing authorities are excluded while
arriving at cost of purchase. Net realizable value is the estimated selling price in the ordinary course of
business, less estimated cost of completion and the estimated costs necessary to make the sale.

viii. Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company
and the revenue can be reliably measured.

Revenue from Contracts with Customers

Revenue from Contract(s) is recognised by following five steps model from revenue recognition as
prescribed in Ind AS 115 which namely are identifying of the contract(s) with a customer ; identifying the
separate performance obligation in the contract ; determining the transaction price ; allocating the
transaction price to the each separate performance obligation and recognising revenue when (or as) each
performance obligation is satisfied. The model specifies that revenue should be recognised when (or as)
an entity transfer control of goods or services to a customer at the amount to which the entity expects to
be entitled

The Company is in the business of manufacturing and sale of Detergents and Organic Chemicals. Revenue
from contract with customers is recognized upon transfer of control of promised products or services to
customers in an amount that reflects the consideration, the company expect to receive in exchange of
those products or services. Revenue is inclusive of excise duty and excluding estimated discount and
pricing incentives, rebates, other similar allowances to the customers and excluding Goods and Service
Tax (GST) and other taxes and amounts collected on behalf of third parties or government, if any.

Sale of Products

Revenue from sale of products is recognised at the point in time when control of asset is transferred to
the customers i.e when the customers obtain the ability to direct the use of and obtain sustantially all of
the remaining benefits from the asset, including ability to prevent other entities from directing the use of,
and obtaining the benefits from an asset. The company considers whether there are other promises in the
contract that are separate performance obligation to which a portion of the transaction price needs to be
allocated e.g warranties. In determining the transaction price for the sale of products, the company
considers the effect of variable consideration, the existence of significant financing components, non-cash
consideration, and consideration payable to the customers, if any.

Contract Balances
Contract Assets

A contract asset is recognised for the conditional earned consideration, if the company has the right to
consideration in exchange of goods or services transferred to a customer before the customer pays the
consideration or before payment is due.

Trade Receivables

A trade receivable is recognised for the company''s right to an amount of consideration, in exchange of
goods or services transferred to a customer, that is unconditional i.e. only the passage of time is required
before payment of the consideration is due.

Contract Liabilities

A Contract liabilities is recognised for the consideration paid by a customer before the transfer of goods or
services to the company. The contract liabilities are recognised as revenue when the company performs
under the contract.

Contract Cost

The incremental costs of obtaining a contract with a customer and the costs incurred to fulfill a contract
with a customer, if those cost are not within the scope of other Ind AS for e.g. Ind AS 2 - Inventories, Ind
AS 16- Property Plant & equipment, Ind AS 38- Intangible Assets etc., are recognised as an asset, if the
company expects to recover those costs. The incremental costs of obtaining the contract are those that
the company incurs to obtain a contract with a customer that would not have been incurred if the contract
had not been obtained. The company has elected to apply the optional practical expedient for costs to
obtain a contract and to fulfill a contract which allows the company to immediately expense the costs
because the amortization period of the asset that the company otherwise would have used is one year.

Interest Income

Interest income from a financial asset is recognized when it is probable that the economic benefit 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 exactly discounts estimated future cash receipts through the expected life of the financial asset
to that asset’s net carrying amount on initial recognition.

Dividend Income

Dividend income is recognized when the Company’s right to receive the dividend is established, it is
probable that the economic benefits associated with the dividend will flow to the entity and the amount of
the dividend can be measured reliably i.e. in case of interim dividend, on the date of declaration by the
Board of Directors; whereas in case of final dividend, on the date of approval by the shareholders.

Insurance Claim

Insurance claim are recognised only when the realization of insurance claim is probable, and only to the
extent of related loss recognised in the financial statements. The recovery of loss is generally would be
probable, when the claim is not in dispute. Any amount expected to be recovered is excess of recognised
loss, which will result in gain is recognised upon the resolution of contingencies liability to insurance claim
i.e. whether amount of claim is admitted to the payable by the insurance company.

Export Incentive

Export Incentives are accounted for in the year of exports based on eligibility and when there is no
significant uncertainty in receiving the same.

Other Incomes

All other incomes are accounted on accrual basis.

ix. Expenses

All expenses are accounted for on an accrual basis.

x. Long-term borrowings

Long-term borrowings are initially recognised at a net of material transaction costs incurred and measured
at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in the Statement of Profit and Loss over the period of the borrowings using the
effective interest method.

xi. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are
capitalised during the period that is required to complete and prepare the asset for its intended use or
sale. Qualifying assets are assets that necessarily take a substantial time to get ready for their intended
use or sale. Borrowing costs consist of interest and other costs that the Company incurs in connection with
the borrowing of funds. Borrowing costs also include exchange differences to the extent regarded as an
adjustment to the borrowing costs. Other borrowing costs are expensed in the period in which they are
incurred.

xii. Leases

lnd AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted
with any option to extend or terminate the lease, if the use of such option is reasonably certain. The
Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby
assesses whether it is reasonably certain that any options to extend or terminate the contract will be
exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold
improvements undertaken over the lease term, costs relating to the termination of the lease and the
importance of the underlying asset to Company''s operations taking into account the location of the
underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed
to ensure that the lease term reflects the current economic circumstances.

• The company as a lessee

The Company accounts for each lease component within the contract as a lease separately from non-lease
components of the contract and allocates the consideration in the contract to each lease component
based on the relative stand-alone price of the lease component and the aggregate stand-alone price of the
non-lease components.

The Company recognises right-of-use asset representing its right to use the underlying asset for the lease
term at the lease commencement date. The cost of the right-of-use asset measured at inception shall
comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments

made at or before the commencement date less any lease incentives received, plus any initial direct costs
incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying
asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently
measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted
for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line
method from the commencement date over the shorter of lease term or useful life of right-of-use asset.
The estimated useful lives of right-of-use assets are determined on the same basis as those of property,
plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that
their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of
profit and loss.

The Company measures the lease liability at the present value of the lease payments that are not paid at
the commencement date of the lease. The lease payments are discounted using the interest rate implicit
in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company
uses incremental borrowing rate. For leases with reasonably similar characteristics, the Company, on a
lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the
incremental borrowing rate for the portfolio as a whole. The lease payments shall include fixed payments,
variable lease payments, residual value guarantees, exercise price of a purchase option where the
Company is reasonably certain to exercise that option and payments of penalties for terminating the lease,
if the lease term reflects the lessee exercising an option to terminate the lease.

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 and remeasuring the
carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed
lease payments. The company recognises the amount of the re-measurement of lease liability due to
modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon
the nature of modification. Where the carrying amount of the right-of-use asset is reduced to zero and
there is a further reduction in the measurement of the lease liability, the Company recognises any
remaining amount of the re-measurement in statement of profit and loss.

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 company as a lessor

At the inception of the lease, the Company classifies each of its leases as either an operating lease or a
finance lease. The Company recognises lease payments received under operating leases as income on a
straight-line basis over the lease term. In the case of a finance lease, finance income is recognised over
the lease term based on a pattern reflecting a constant periodic rate of return on the lessor’s net
investment in the lease. When the Company is an intermediate lessor it accounts for its interests in the
head lease and the sub-lease separately. It assesses the lease classification of a sublease with reference
to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head
lease is a short-term lease to which the Company applies the exemption described above, then it classifies
the sub-lease as an operating lease.

If an arrangement contains lease and non-lease components, the Company applies Ind AS 115 Revenue
from contracts with customers to allocate the consideration in the contract.

xiii. Taxes

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

i) Current income tax :

Current income tax assets and liabilities are measured at the amount expected to be recovered from or

paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are

enacted or substantively enacted, at the reporting date.

Current tax expense is recognized in profit or loss except to the extent that it relates to items recognized

directly in other comprehensive income or equity, in which case it is recognized in OCI or equity.

Management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and established provisions, where appropriate, on
the basis of amounts expected to be paid to the tax authorities.

The Company Offsets current tax assets and current tax liabilities, where it has a legally enforceable right
to set off the recognised amounts and where it intends either to settle on a net basis or to realise the assets
and settle the liabilities simultaneously.

The Company will update the amount in the financial statement if facts and circumstances change as a
result of examination or action by tax authorities.

ii) Deferred tax:

Deferred tax is recognized using the balance sheet method, providing for temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes. Deferred income tax is determined using tax rates (and laws) that have been enacted
or substantially enacted by the end of the reporting period and are expected to apply when the related
deferred income tax assets is realised or the deferred income tax liability is settled.

Deferred tax is recognized in the Statement of profit and loss except to the extent that it relates to items
recognized directly in OCI or equity, in which case it is recognized in OCI or equity.

Deferred tax liabilities are generally recognised for all taxable temporary differences. A deferred tax asset
is recognized to the extent that it is probable that future taxable profits will be available against which the
temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are
reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Minimum Alternate Tax (MAT) credits is recognised as deferred tax assets in the Balance Sheet only when
the asset can be measured reliably and to the extent there is convincing evidence that sufficient taxable
profit will be available against which the MAT credits can be utilised by the company in future.

xiv) Impairment

• Non-financial assets

Goodwill and Intangible assets that have an indefinite useful life are not subject to amortisation but are
tested annually for impairment.

Other intangible assets and property, plant and equipment are evaluated for recoverability whenever events
or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose
of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-
in-use) is determined on an individual asset basis unless the asset does not generate cash flows 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.

The Carrying amount of assets is reviewed at each balance sheet date, if there is any indication of impairment
based on internal/external factor. An asset is impaired when the carrying amount of the assets exceeds the
recoverable amount. Impairment is charged to the profit and loss account in the year in which an asset is
identified as impaired.

An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates
used to determine the recoverable amount. The carrying amount of the asset is increased to its revised
recoverable amount, provided that this amount does not exceed the carrying amount that would have been
determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized
for the asset in prior years.

• Financial Assets

The Company recognizes loss allowances using the Expected Credit Loss (“ECL”) model for financial assets
measured at amortized cost. The Company recognizes lifetime expected credit losses for trade receivables.
Loss allowance equal to the lifetime expected credit losses are recognized if the credit risk of the financial
asset has significantly increased since initial recognition.

xv) Government grants

Government grants are recognised at fair value where there is reasonable assurance that the grant will be
received and all attached conditions will be complied with.

Government grants related to assets, including non-monetary grants recorded at fair value, are treated as
deferred income and are recognized and credited in the Statement of Profit and Loss on a systematic and
rational basis over the estimated useful life of the related asset.

When loans or similar assistance are provided by governments or related institutions, with an interest rate
below the current applicable market rate, the effect of this favourable interest is regarded as a government
grant. The loan or assistance is initially recognised and measured at fair value and the government grant
is measured as the difference between the initial carrying value of the loan and the proceeds received.
The loan is subsequently measured as per the accounting policy applicable to financial liabilities.

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Mar 31, 2024

1 Company Overview Corporate Information

Standard Surfactants Limited ("SSL" or "the Company") having CIN No. L24243UP1989PLC010950 is a public company domiciled in India and incorporated under the provisions of the Companies Act applicable in India and has its registered office at Kanpur, Uttar Pradesh, India.

Its shares are listed on the Bombay Stock Exchange of India.

The company is engaged mainly in the manufacturing and selling of Detergents and Organic Chemicals.

These financial statements are approved and adopted by Board of Directors in their meeting held on 29th May, 2024 and are subject to adoption by the shareholders in the ensuing Annual General Meeting.

2.1 Basis of preparation and presentationa) Compliance with Ind AS

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 (the Act) read with the Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and relevant amendment rules thereafter and accounting principles generally accepted in India.

Recent Accounting Pronouncements

ii) New and revised standards adopted by the Company

Effective 1^st April, 2023, the Company has adopted the amendments vide Companies (Indian Accounting Standards) Amendment Rules, 2023 notifying amendments to existing Indian Accounting Standards.

These amendments to the extent relevant to the Company’s operations were relating to:

Ind AS 1 "Presentation of Financial Statements" which replaces the requirement for the entities to disclose their "significant" accounting policies with a requirement to disclose their "material" accounting policies and further provides guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The amendments clarify that accounting policy information is expected to be material if, without it, the user of financial statements would be unable to understand other material information in the financial statements and also clarify that immaterial accounting policy information need not to be disclosed, however, if it is disclosed, it should not obscure the material accounting policy information. Further, consequential amendments with respect to the concept of ‘material accounting policies’ have also been made in Ind AS 107 "Financial Instruments: Disclosures" and Ind AS 34 "Interim Financial Reporting". The Company has modified and presented its "material accounting policies" in the financial statement for the year commencing from April 1 2023 in compliance with the amendments made Ind AS 8 "Accounting Policies, Changes in Accounting Estimates and Errors" which introduces a definition of

"accounting estimates" and provides guidance to help entities to distinguish changes in accounting policies from changes in accounting estimates. The amendments do not have a material impact on the Company.

Ind AS 12 "Income Taxes" narrows the scope of the ‘initial recognition exemption’ so that it does not apply to transactions that give rise to equal and offsetting temporary differences on its initial recognition. The amendments apply to the transactions that occur on or after the beginning of the earliest comparative period presented in the annual reporting periods beginning on or after April 1, 2023. In addition, at the beginning of the earliest reporting period presented deferred tax on all the temporary differences associated with Right-of-use asset and lease liabilities; decommissioning, restoration and similar liability and the corresponding amounts recognized as part of the cost of the related assets shall also required to be recognized as an adjustment to the opening balance of retained earning. The amendments do not have any material impact on the Company as it has already been following accounting policy of recognizing deferred tax on equal and offsetting temporary differences on initial recognition of lease transactions.

There are other amendments in various standards, including Ind AS 101 "First Time Adoption if Indian Accounting Standards"; Ind AS 102 "Share-based Payment"; Ind AS 103 "Business Combination"; Ind AS 109 "Financial Instruments"; and Ind AS 115 "Revenue from Contracts with Customers" which are not listed herein above since these are either not material or relevant to the Company.

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards. There is

no ouch notification which would have been applicable from April 1 2024

iii) Basis of preparation

These financial statements have been prepared on going concern basis using the significant accounting policies and measurement bases summarized below. Accounting Policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in accounting policy hitherto in use. In those cases the new accounting policy is adopted in accordance with the transitional provisions stipulated in that Ind AS and in absence of such specific transitional provision, the same is adopted retrospectively for all the periods presented in these financial statements.

The financial statements have been prepared on the historical cost basis except for certain financial assets and liabilities (refer accounting policy regarding financial instruments) that are measured at fair values at the end of each reporting period, assets for defined benefit plans that are measured at fair value, assets held for sale which are measured at lower of cost and fair value less cost to sell as explained further in notes to financial statements.

iv) Functional and presentation currency

These financial statements are presented in Indian rupees (?), which is company''s functional currency. All amounts have been rounded off to nearest lacs and two decimal places unless otherwise indicated.

v) Operating Cycle

All assets and liabilities has been classified as current and non-current as per the Company''s normal operating cycle criteria set out below which are in accordance with the Schedule III to the Act. Based on the nature of services and time between the acquisition of assets for providing of services and their realisation in Cash and Cash equivalent, the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities.

2.2 Current versus non-current classification

The company presents assets and liabilities in the balance sheet based on current/ non-current An asset is treated as current when it satisfies any of the following criteria:

• Expected to be realized or intended to be sold or consumed within normal operating cycle.

• Held primarily for the purpose of trading.

• Expected to be realized within twelve months after the reporting date, or

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

Current assets include the current portion of non current financial assets. All other assets are classified as non - current.

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

• Expected to be settled in the company’s normal operating cycle;

• Held primarily for the purpose of trading;

• Due to be settled within twelve months after the reporting date; or

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

• Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments does not affect its classification.

Current liabilities include the current portion of non-current financial liabilities. All other liabilities are classified as non-current.

The Company has ascertained its operating cycle as twelve months for the purpose of current and noncurrent classification of assets and liabilities.

2.3 Use of Estimates and management judgements

The preparation of financial statements in conformity with the accounting policy and measurement principles under Ind AS requires the management of the company to develop accounting estimates that affect the application of accounting policy and the reported amounts of revenues, expenses, assets, liabilities including

accompanying disclosures and the disclosure of contingent liabilities and contingent assets. Developing accounting estimates involves the use of measurement technique and other inputs including judgement or assumption based on the latest available, reliable information. Although these accounting estimates are based upon the management’s best knowledge of current events and actions, actual results could differ from these accounting estimates.

The accounting estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates due to change in an input or change in a measurement technique, are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The areas involving critical judgements are as follows:

i) Fair value measurements of financial instruments:

When the fair value of financial assets and liabilities recorded in the Balance sheet cannot be measured based on the quoted market price in the active markets, their fair value is measured using valuation technique. The input to these model is taken from the observable market wherever possible, but if this is not feasible, a review of judgements is required to establish fair values. Changes in assumptions related to these inputs could affect the fair value of financial instrument.

ii) Recognition and measurement of defined benefit

The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial assumption includes discount rate, trends in salary escalation and attrition rate. The discount rate is determined by reference to market yields at the end of the reporting period on government securities. The period to maturity of the underlying securities correspond to the probable maturity of the post-employment benefit obligations. However any changes in these assumptions may have a material impact on resulting calculations.

iii) Impairment of trade receivables

The Company has a stringent policy of ascertaining impairments, if any, as a result of detailed scrutiny of major cases and through determining expected credit losses. Despite best estimates and periodic credit appraisals of customers, the Company’s receivables are exposed to delinquency risks due to material adverse changes in business, financial or economic conditions that are expected to cause a significant change to the party’s ability to meet its obligations. All such parameters relating to impairment or potential impairment are reviewed at each reporting date.

iv) Provisions , Contingent liabilities and Contingent assets

The timing of recognition and quantification of the provisions, contingent liabilities and contingent assets require the application of judgement to existing facts and circumstances which are subject to change on the actual occurrence or happening. Judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/ claims/ litigations against the Company and possible inflow of resources in respect of the claims made by the Company which has been considered to be contingent in nature. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

v) Current taxes and deferred taxes

Significant judgement is required in the determination of the taxability of certain income and deductibility of certain expenses during the estimation of the provision for current income taxes and option to be exercised for application of reduced rates of taxation on possible cessation of tax deduction and exhaustion of MAT credit entitlement in future years based on estimates of future taxable profits for estimation of the deferred taxes.

Deferred tax assets are recognised for all deductible temporary differences, the unused tax losses and the unused tax credit to the extent that it is probable that taxable profit would be available against which these could be utilized. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. The deferred tax assets and liabilities are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

vi) Estimated useful life and residual value of plant, property equipment (PPE) and intangible assets:

PPE & Intangible asset represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation/ ammortisation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual value of the asset are determined by the management when the asset is acquired and reviewed periodically including at each financial year end. The lives are based on technical evaluation made by the management of the expected usage of the asset, the physical wear and tear and technical or commercial obsolescence of the asset.Due to the judgements invloved in such estimations, the useful life and residual value are sensitive to the actual usage in future period.

vii) 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 specific to the lease being evaluated or for a portfolio of leases with similar characteristics.

viii) Net Realisable Value of an item of Inventory

Significant judgement is required in the estimation of net realisable value of an item of inventory especifically of an item which is not actively traded in the market. The management considers various factors such as prevailing unit specific market price of the item of inventory, minimum sale price/ controlled price of the products, contracted rates for the contracted quantity, Government Policies, price trend in domestic and international market, monthly sale quota, estimated sale expenses etc. in determination of the net realisable value of the item of inventory actively traded in the market. The management also considers the expected final yeid of the finished products for deriving the net realisable value of the tailor made by product is not actively traded in the market. The final net realisation of the item of inventory is dependent on the market conditions prevailing at the time of its ultimate sale and hence could differ from the reported amount

2.4 Material Accounting Policies

A. Property, Plant & Equipment and Capital work in Progress • Recognition and measurement

Property, plant and equipment are tangible items that are held for use in the production or supply for goods and services, rental to others or for administrative purposes and are expected to be used for more The cost of an item of property, plant and equipment is being recognized as an asset if and only if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.

Freehold lands are stated at cost/deemed cost. All other items of property, plant and equipment are stated at cost/deemed cost net of recoverable taxes/duty credit availed less accumulated depreciation, and accumulated impairment loss, if any.

The cost of an asset includes the purchase cost of assets, including import duties and non-refundable taxes, and any directly attributable costs of bringing an asset to the location and condition of its intended use. For this purpose cost includes carrying value as deemed cost on date of transition. Interest on borrowings used to finance the construction of qualifying assets are capitalized as part of the cost of the asset until such time that the asset is ready for its intended use

Items of spare parts, stand-by equipments and servicing equipments which meet the definition of property, plant and equipment are capitalized. Other spare parts are carried as inventory and recognized in the statement of profit and loss on consumption. When parts of an item of Property, plant & equipments have different useful lives, they are accounted for as separate component.

The carrying amount of an item of Property, Plant and Equipment shall be derecognised on disposal or when no future economic benefits are expected from its use or disposal .When a significant part of property, plant and equipment are required to be replaced at intervals, the company derecognizes the replaced part and recognise the new part with its own associated life and it is depreciated accordingly.

Likewise when a major repair is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement, if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in the Statement of Profit and Loss as incurred.

The present value of the expected cost of decommissioning of an asset after its use, if any, is included in the cost of the respective asset if the recognition criteria of provisions are met.

The cost and related accumulated depreciation are eliminated from the financial statement upon sale or retirement of the asset and resultant gains or losses are recognized in the Statement of Profit and Loss.

Assets identified and technically evaluated as obsolete are retired from active use and held for disposal are stated at lower of its carrying amount and fair value less cost to sell.

Capital work-in-progress, representing expenditure incurred in respect of assets under development and not ready for their intended use, are carried at cost/deemed cost. Cost includes related acquisition expenses, construction cost, related borrowing cost and other direct expenditure.

• Subsequent Expenditure.

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

B. Intangible Assets

Intangible assets are recognized when it is probable that the future benefits that are attributable to the assets will flow to the Company and the cost of the assets can be measured reliably.

Research costs are expensed as incurred. Development expenditures on an individual project are recognised as an intangible asset when the company can demonstrate:

a) The technical feasibility of completing the intagible assets so that the asset will be availablke for use or sale

b) Its intention to complete and its ability and intention to use or sale the assets.

c) How the asset will generate future economic benefits

d) The availability of resources to complete the asset.

e) The ability to measure reliably the expenditure during development During the period of development, the asset is tested for impairment annually.

Intangible assets acquired separately including patents and liscenses, are measured on initial recognition at cost/deemed cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any. Amortisation of the assets begins when the asset is available for use.

The useful life of intangible assets asre assessed as either finite or indefinite. Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired.The amortization period and the amortization method for an intangible assets with a finite useful life are reviewed atleast at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the assets are considered to modify the amortization period or method, as appropriate , and are

treated as changes in accounting estimates

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at cost generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from

indefinite to finite is made on prospective basis

Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in the statement of profit and loss for the year in which the expenditure is incurred.

An intangible asset is derecognized on disposal, or when no future economic benefits are expected from its use. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss when the asset is derecognized. Deemed cost is carrying amount under the previous GAAP as at transition date.

C. Depreciation and Amortization

The classification of plant and machinery into continuous and non-continuous process is done as per their

use and depreciation thereon is provided accordingly. Depreciation commences when the assets are available for their intended use. Depreciation is calculated using the straight-line method except in respect of plant & machinery of SO3 unit depreciation is provided on written down value method on the basis of life given and in the manner prescribed in schedule II to the Company Act, 2013

The management has estimated the useful lives and residual values of all property, plant and equipment and adopted useful lives as stated in Schedule II of the Companies Act, 2013, along with residual values of 5%.

The Company has used the following useful lives to provide depreciation on its tangible assets:

	Assets	Useful Lives
	Building	30 years
	Plant & equipment	15 years
	Furniture & fixtures	10 years
	Computers	03 years
	Office equipment	05 years
	Vehicles	08 years

Intangible assets with finite life are amortized over the period of 5 to 10 years on straight line basis based on the expected pattern of consumption of future economic benefits embodied in the assets.

D Foreign currency translations/Conversion

Transactions in foreign currencies are initially recorded at the functional currency spot rate prevailing at the date the transaction first qualifies for recognition.

Monetary assets and liabilities related to foreign currency transactions outstanding at the balance sheet date are translated at the functional currency spot rate of exchange prevailing at the balance sheet date. Any income or expense arising on account of foreign exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

Non-monetary items which are carried at historical cost denominated in a foreign currency are translated using the exchange rate at the date of the initial transaction. Non-monetary items which are measured at fair value in a foreign currency are translated using the exchange rates at the date when fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of item.

E. Leases

lnd AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Company''s operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current

• The Company as a lessee

The Company''s lease asset class primarily consist of leases for buildings. The Company assesses whether a contract contains a lease, at inception of a 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:

> The contract involves the use of an identified asset.

> The Company has substantialized all of the economic benefits from use of the asset through the period of the lease and;

> The Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset ("ROU") and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

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

The right-of-use 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 less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses, if any.

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

Right-of-use assets is evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows 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.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are re-measured with a corresponding adjustment to the related right- of- use asset if the Company changes its assessment of whether it will exercise an extension or a termination option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

• As a lessor

Leases for which the company is a lessor, is classified as finance lease or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as finance lease. All other leases are classified as operating lease. When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. The sublease is classified as finance lease or operating lease with reference to right-of-use asset arising from the Fer operatin g leases, rental income is recognized on a straight line basis over the term of such lease.

F Government Grant

Government grants are recognised at fair value where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the company with no future related costs are recognised in statement of profit and loss in the period in which they become receivable.

Government grants related to assets, including non-monetary grants recorded at fair value, are treated as deferred income and are recognized and credited in the Statement of Profit and Loss on a systematic and rational basis over the estimated useful life of the related asset and presented in other income.

When loans or similar assistance are provided by governments or related institutions, with an interest rate below the current applicable market rate, the effect of this favourable interest is regarded as a government grant. The loan or assistance is initially recognised and measured at fair value and the government grant is measured as the difference between the initial carrying value of the loan and the proceeds received. The loan is subsequently measured as per the accounting policy applicable to financial liabilities.

G. Borrowing

Long term borrowing are initially recognised at net of material transaction costs incurred and measured at

amortised cost.Any diffrence between the proceeds (net of transaction costs) and the redemption amount is recognised in the statement of Profit and Loss over the period of the borrowing using the effective interest method.

H Borrowing Cost

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds. Borrowing costs also include exchange differences to the extent regarded as an adjustment to the borrowing costs. Other borrowing costs are expensed in the period in which they are incurred.

I Employee benefit plans:

Expenses and liabilities in respect of employee benefits are recorded in accordance with Indian Accounting Standard (lnd AS)-19 - ''Employee Benefits''.

• Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expense off as the related service is provided. A liability is recognized for the amount expected to be paid e.g., under shortterm cash bonus, if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the amount of obligation can be estimated reliably.

• Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. The Company makes specified monthly contributions towards Government administered provident fund scheme. Obligations for contributions to defined contribution plans are recognized as an employee benefit expense in statement of profit or loss in the periods during which the related services are rendered by employees. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available.

Retirement benefit in the form of superannuation fund is a defined contribution scheme. The Company has established a Superannuation Fund Trust to which contributions are made quarterly. The Company recognizes contribution payable to the superannuation fund scheme as expenditure, when an employee renders the related service. The Company has no other obligations beyond its quarterly contributions.

• Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The company net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligation is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the company, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan (‘the asset ceiling’). In order to calculate the present value of economic benefits, consideration is given to any minimum funding

Re-measurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized as other comprehensive income. The company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service (‘past service cost’ or ‘past service gain’) or the gain or loss on curtailment is recognized immediately in statement of profit or loss. The company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

• Other long-term employee benefits

The Company''s net obligation in respect of long-term employee benefits other than post-employment benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The obligation is measured on the basis of an annual independent actuarial valuation using the projected unit credit method. Re-measurements gain or losses are recognized in statement of profit or loss in the period in which they arise.

• Voluntary Retirement Scheme

Expenditure on voluntary retirement scheme is charged to the Statement of Profit and Loss in the year in which it is incurred.

• Compensated absences

The employees of the Company are entitled to compensated absences that are both accumulating and non accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation using the projected unit credit method for the unused entitlement accumulated at the balance sheet date. The benefits are discounted using the market yields at the end of the balance sheet date that has terms approximating the terms of the related obligation. Re-measurements resulting from experience adjustments and changes in actuarial assumptions are recognized in profit or loss.

J Inventories

(i) Raw materials, spares and consumables are valued at Cost on FIFO basis.

(ii) Traded Goods are valued at lower of cost or net realizable value. The cost is determined on FIF

(iii) Finished Goods and Work in progress are valued at Lower of cost of production or net realizable value. Cost is determined on FIFO basis.

Cost of inventories comprises all costs of purchase and other cost incurred in bringing the inventories to their present location and condition. Cost of production comprises of cost of direct materials, cost of labour, manufacturing overheads, and a portion of fixed cost, based on the normal operating capacities. Duties and taxes those are subsequently recoverable from the taxing authorities are excluded while arriving at cost of purchase. Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost of completion and the estimated costs necessary to make the sale.

K Financial Instruments i) Financial Asset Classification

The company classifies financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss on the basis of its business model for managing the financial assets and contractual cash flow characteristics of the financial asset.

Initial Recognition and Measurement

All financial assets are recognised initially at fair value. Transaction costs directly attributable to the acquisition or issue of the financial asset, other than financial assets at fair value through profit or loss, are added to or deducted from the fair value of the financial assets as appropriate on initial recognition. The financial assets include equity and debt securities, trade and other receivables, loans and advances, cash and bank balances and derivative financial instruments. Trade receivables that do not contain a significant financing component are measured at transaction price.

Subsequent Measurement

For the purpose of subsequent measurement, financial assets are classified in the following categories:

• At amortized cost,

• At fair value through other comprehensive income (FVTOCI).

• At fair value through profit or loss (FVTPL).

Debt instrument at amortized cost

A "Debts instrument" is measured at the amortized cost if both the following condition are met:

• The assets are held within a business model whose objective is to hold assets for collecting contractual cash flow(business model test) , and

• Contractual terms of the assets give rise on specified dates to cash flows that are solely payments of principle and interest on the principle amount outstanding (contractual cash flow characteristics ).

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount, premium, fee or costs that are an integral part of an EIR. The EIR amortization is included in finance income in the statement of profit and loss. The losses arising from impairment are recognized in the statement of profit and loss.

Debt instrument at fair value through profit or loss

Debt instruments included within the fair value through profit or loss (FVTPL) category are measured at fair value with all changes recognized in the statement of profit and loss.

Debt instruments at fair value through other comprehensive income

A financial asset should be measured at FVTOCI if both the following conditions are met:

• The asset is held within a business model in which asset are managed both in order to collect contractual cash flows and for sale, and

• Contractual terms of the assets give rise on specified dates to cash flows that are solely payments of principle and interest on the principle amount outstanding.

After initial measurement (at fair value minus transaction cost), such financial assets are measured at fair value with changes in fair value recognized in Other comprehensive income except for:

• Interest calculated using EIR

• Foreign exchange gain and losses , and

• Impairment losses and gains

Financial assets at amortized cost

A "financial asset" is measured at the amortized cost if both the following condition are met:

i) The assets are held within a business model whose objective is to hold assets for collecting contractual cash flow (business model test) , and

ii) Contractual terms of the assets give rise on specified dates to cash flows that are solely payments of principle and interest on the principle amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount, premium, fee or costs that are an integral part of an EIR. The EIR amortization is included in finance income in the statement of profit and loss. The losses arising from impairment are recognized in the

Financial assets at fair value through other comprehensive income

A financial asset is measured at FVTOCI if both the following conditions are met:

i) The asset is held within a business model in which asset are managed both in order to collect contractual cash flows and for sale, and

ii) Contractual terms of the assets give rise on specified dates to cash flows that are solely payments of principle and interest on the principle amount outstanding.

After initial measurement (at fair value minus transaction cost), such financial assets are measured at fair value with changes in fair value recognized in Other comprehensive income except for:

• Interest calculated using EIR

• Foreign exchange gain and losses , and

• Impairment losses and gains

Financial assets at fair value through profit or loss

Financial assets that are not classified in any of the categories above are classified at fair value through Equity investments

All equity investments in the scope of Ind AS 109 are measured at fair value. Equity instruments included within the FVTPL category, if any, are measured at fair value with all changes recognized in statment of profit or loss. The Company may make an irrevocable election to present in OCI subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable. When the fair value has been determined based on level 3 inputs, the difference between the fair value at initial recognition and the transaction price, if loss, is recognized through retained earnings and after initial recognition subsequent changes in fair value of equity instruments is recognised as gain or loss to the extent it arises from change in input to valuation technique. If the Company decides to classify an equity instrument at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in OCI. There is no recycling of the amounts from OCI to profit or loss, even on sale of investment. However, the Company may transfer the cumulative gain De-recognition

A financial asset (or, where applicable, a part of a financial asset) is primarily derecognized when:

• The right to receive cash flows from the assets have expired or

• The company has transferred substantially all the risks and rewards of the assets, or

• The company has neither transferred nor retained substantially all the risks and rewards of the assets, but has transferred control of the assets.

ii) Financial liabilities Classification

Debt and equity instruments issued by the company are classified as either financial liabilities or as equity in accordance with the substance of the contractual agreements and the definitions of financial liability

Initial recognition and measurement

The company recognizes financial liability when it becomes a party to the contractual provision of the instrument. All financial liabilities are recognized initially at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial liabilities, other than financial liabilities at fair value through profit or loss, are added to or deducted from the fair value of the financial liabilities, as appropriate, on initial recognition.

Subsequent Measurement

All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL.

Financial liability at amortized cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the Effective Interest Rate (EIR) method. Gain and losses are recognized in statement of profit and loss when the liabilities are derecognized.

Amortization cost is calculated by taking into account any discount or premium on acquisition and transaction cost. These amortization is included as finance cost in the statement of profit and loss.

This category generally applies to loans & borrowings.

Financial liability at FVTPL

Financial liabilities are classified at FVTPL when the financial liability is either contingent consideration recognized by the company as an acquirer in a business combination to which Ind AS 103 applies or is held for trading or it is designed as at FVTPL.

Financial liabilities at FVTPL are stated at fair value, with any gain or loss arises on re-measurement recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any interest paid on the financial liability.

Equity Instrument

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the company are recognized at the proceeds received, net of direct issue cost.

Repurchase of the company’s own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue, or cancellation of the company’s

Financial guarantee contracts :

Financial guarantee contracts issued by the company are those contracts that requires a payment to be made to reimburse the holder for a loss it incurs because the specific debtors fails to make a payment

when due in accordance with the terms of debt intrument. Financial guarantee contracts are recognised initially as a liability at a fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirement of Ind AS 109 and the amount recognised less cumulative amortization.

De-recognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expired. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amount recognized in the Statement of Profit and Loss.

iii Offsetting of financial instrument

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

iv Equity Share Capital

Ordinary shares are classified as equity instrument is a contract that evidences a residual interest in Company''s assets after deducting all it''s liabilities.

Incremental cost directly attributable to the issuance of new equity share and buy back of equity shares are shown as a deduction from the equity, net off any tax effects.

L. Derivative Financial Instruments and Hedge Accounting

The Company uses various derivative financial instruments to mitigate the risk of changes in interest rates, exchange rates and commodity prices. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are also subsequently measured at fair value. Derivatives are carried as Financial Assets when the fair value is positive and as Financial Liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of Profit and Loss, except for the effective portion of cash flow hedge which is recognised in Other Comprehensive Income and later to Statement of Profit and Loss when the hedged item affects profit or loss or is treated as basis adjustment if a hedged forecast transaction subsequently results in the recognition of a Non-Financial Assets or Non-Financial liability.

Hedges that meet the criteria for hedge accounting are accounted for as follows:

A. Cash Flow Hedge: The Company designates derivative contracts or non-derivative Financial Assets / Liabilities as hedging instruments to mitigate the risk of movement in interest rates and foreign exchange rates for foreign exchange exposure on highly probable future cash flows attributable to a recognised asset or liability or forecast cash transactions. When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in the cash flow hedging reserve being part of Other Comprehensive Income. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in the Statement of Profit and Loss. If the hedging relationship no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve until the underlying transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the Statement of Profit and Loss upon the occurrence of the underlying transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified in the Statement of Profit and Loss.

B. Fair Value Hedge: The Company designates derivative contracts or non-derivative Financial Assets /

I iabilities as hedging instruments to mitigate the risk of change in fair value of hedged item due to

movement in interest rates, foreign exchange rates and commodity prices. Changes in the fair value of hedging instruments and hedged items that are designated and qualify as fair value hedges are recorded in

the Statement of Profit and I oss If the hedging relationship no longer meets the criteria for hedge

M. 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

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Entity 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.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

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

Level 2: 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 unobservable

For the purpose of fair value disclosures, the Company has determined classes of assets & liabilities on the basis of the nature, characteristics and the risks of the asset or liability and the level of the fair value

hierarchy as explained above

N. Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, cheques on hand, deposits held at call with banks, balance with banks on current account and short term, highly liquid investments with an original maturity of three months or less that are readily convertible to cash and which are subject to an insignificant risk of changes in value.

For the purpose of statement of cash flow, cash and cash equivalents consist of cash and short term deposits, net of outstanding bank overdraft as they being considered as integral part of the company’s cash management.

O Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Revenue from Contracts with Customers

Revenue from Contract(s) is recognised by following five steps model from revenue recognition as prescribed in Ind AS 11

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Mar 31, 2015

(A) Basic of preparation of financial statements :

1. The financial statement have been prepared under the historical cost convention in accordance with the generally accepted accounting principals and the provisions of the Companies Act, 2013, except; stated herein below.

2. The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

3. The preparation of financial statement requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual and estimates are recognized in the period in which the result is known materialized.

(B) Fixed assets :

Fixed assets are taken at cost as reduced by cenvat, and accumulated depreciation thereon. Costs include borrowing costs till the date for commercial use.

(C) Depreciation & Amortisation :

1. Depreciation is provided on straight line method except depreciation is provided on written down value method in respect of plant & machinery of SO3 unit on the basis of Life given and in the manner prescribed in schedule II to the Companies Act, 2013

2. Depreciation on incremental Cost arising on account of transaction of foreign currency liabilities for acquisition of fixed assets is amortized over the residual life of the respective assets

3. Premium on leasehold land is amortized over the lease period.

4. Goodwill and trade marks are amortized over a period of five and ten years respectively

(D) Foreign exchange transaction :

1. Foreign currency transaction remaining unsettled at the end of the year & not covered by foreign exchange contracts is translated at year end rates.

2. In respect of the transactions covered by forward contracts the difference between the contract rate & the rate on the date of transaction in charged to profit & loss account over the period of the contract.

(E) Inventories :

1. Inventories are valued at cost except of finished goods and by products. Finished goods are valued

At lower of cost or market value and by products are valued at market value.

(F) Sales :

1. Sales are net of discounts but include inter-unit transfer and excise duty

(G) Employee benefits :

1. Short - term employee benefits are recognized as expenses at the undiscounted amount in the profit & loss account of the year in which the related services are rendered.

2. Post employment and other long term employee benefits are recognized as expenses in the profit & loss account for the year in which the employee has rendered services. The gratuity is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses are charged to the

profit & loss account. Liability for leave encashment is provided for considering retirement of employees at year end.

(H) Investment :

1. Investment is carried at cost and diminutions in value of investment is made in case of permanent loss.

(I) Taxes of income :

1. Taxes of income for current period has been determined on the basis of taxable income and tax Credits computed

in accordance with provision of Income tax act, 1961 and Accounting Standard 22 given by Institute of Chartered Accountants of India

(J) Impairment of assets :

The carrying amount of assets other than the inventories is reviewed at each balance sheet date to determine whether there is any indication of impairment. If any, such indication exist the Recoverable amount of the assets is estimated .An impairment loss is recognized whenever the carrying amount of an assets or its cash generating unit exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value is use which is determined based on the estimated future cash flow discounted on their present values .All impairment losses are recognized in compliance with AS-28

An impairment loss is reversed if there has been a change in estimated use to determine the recoverable amount and recognized in compliance with AS-28.

(K) Provision, contingent liabilities and contingent assets :

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and its is probable that there will be outflow of resources, contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2014

(A) Basic of preparation of financial statements :

1. The financial statement have been prepared under the historical cost convention in accordance with the generally accepted accounting principals and the provisions of the Companies Act 1956 ,except; stated herein below.

2. The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

3. The preparation of financial statement requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual and estimates are recognized in the period in which the result is known materialized.

(B) Fixed assets :

Fixed assets are taken at cost as reduced by cenvat , and accumulated depreciation thereon. Costs include borrowing costs till the date for commercial use.

(C) Depreciation & Amortisation :

1. Depreciation is provided on straight line method except depreciation is provided on written down value method in respect of plant & machinery of SO3 unit at the rate and in the manner prescribed in schedule XIV to the Companies Act, 1956

2. Depreciation on incremental Cost arising on account of transaction of foreign currency liabilities for acquisition of fixed assets is amortized over the residual life of the respective assets

3. Premium on leasehold land is amortized over the lease period.

4. Goodwill and trade marks are amortized over a period of five and ten years respectively

(D) Foreign exchange transaction :

1. Foreign currency transaction remaining unsettled at the end of the year & not covered by foreign exchange contracts is translated at year end rates.

2. In respect of the transactions covered by forward contracts the difference between the contract rate & the rate on the date of transaction in charged to profit & loss account over the period of the contract.

(E) Inventories :

Inventories are valued at cost except of finished goods and by products. Finished goods are valued at lower of cost or market value and by products are valued at market value.

(F) Sales :

Sales are net of discounts but include inter-unit transfer and excise duty.

(G) Employee benefits :

1. Short - term employee benefits are recognized as expenses at the undiscounted amount in the profit & loss account of the year in which the related services are rendered.

2. Post employment and other long term employee benefits are recognized as expenses in the profit & loss account for the year in which the employee has rendered services. The gratuity is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses are charged to the profit & loss account. Liability for leave encashment is provided for considering retirement of employees at year end.

(H) Investment :

Investment is carried at cost.

(I) Taxes of income :

Taxes of income for current period has been determined on the basis of taxable income and tax Credits computed in accordance with provision of Income tax act, 1961.

(J) Impairment of assets :

The carrying amount of assets other than the inventories is reviewed at each balance sheet date to determine whether there is any indication of impairment .If any, such indication exist the Recoverable amount of the assets is estimated .An impairment loss is recognized whenever the carrying amount of an assets or its cash generating unit exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value is use which is determined based on the estimated future cash flow discounted on their present values .All impairment losses are recognized in compliance with AS-28

An impairment loss is reversed if there has been a change in estimated use to determine the recoverable amount and recognized in compliance with AS-28.

(K) Provision, contingent liabilities and contingent assets :

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and its is probable that there will be outflow of resources, contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2013

(A) Basic of preparation of financial statements :

1. The financial statement have been prepared under the historical cost convention in accordance with the generally accepted accounting principals and the provisions of the Companies Act 1956 , except; stated herein below.

2. The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

3. The preparation of financial statement requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual and estimates are recognized in the period in which the result is known / materialized.

(B) Fixed assets :

Fixed assets are taken at cost as reduced by cenvat, and accumulated depreciation thereon. Costs include borrowing costs till the date for commercial use.

(C) Depreciation & Amortisation :

1. Depreciation is provided on straight line method except depreciation is provided on written down value method in respect of plant & machinery of S03 unit at the rate and in the manner prescribed in schedule XIV to the Company Act, 1956.

2. Depreciation on incremental cost arising on account of transaction of foreign currency liabilities for acquisition of fixed assets is amortized over the residual life of the respective assets.

3. Premium on leasehold land is amortized over the lease period.

4. Goodwill and trade marks are amortized over a period of five and ten years respectively.

(D) Foreign exchange transaction :

1. Foreign currency transaction remaining unsettled at the end of the year & not covered by foreign exchange contracts is translated at year end rates.

2. In respect of the transactions covered by forward contracts the difference between the contract rate & the rate on the date of transaction in charged to profit & loss account over the period of the contract.

(E) Inventories :

Inventories are valued at cost except of finished goods and by products. Finished goods are valued at lower of cost or market value and by products are valued at market value.

(F) Sales :

Sales are net of discounts but include inter-unit transfer and excise duty.

(G) Employee benefits :

1. Short - term employee benefits are recognized as expenses at the undiscounted amount in the profit & loss account of the year in which the related services are rendered.

2. Post employment and other long term employee benefits are recognized as expenses in the profit & loss account for the year in which the employee has rendered services. The gratuity is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses are charged to the profit & loss account. Liability for leave encashment is provided for considering retirement of employees at year end.

(H) Investment :

Investment is carried at cost.

(I) Taxes of income :

Taxes of income for current period has been determined on the basis of taxable income and tax credits computed in accordance with provision of Income tax act. 1961.

(J) Impairment of assets :

The carrying amount of assets other than the inventories is reviewed at each balance sheet date to determine whether there is any indication of impairment .If any, such indication exist the recoverable amount of the assets is estimated An impairment loss is recognized whenever the carrying amount of an assets or its cash generating unit exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value is use which is determined based on the estimated future cash flow discounted on their present values .All impairment losses are recognized in compliance with AS-28

An impairment loss is reversed if there has been a change in estimated use to determine the recoverable amount and recognized in compliance with AS-28.

(K) Provision, contingent liabilities and contingent assets :

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and its is probable that there will be outflow of resources, contingent liabilities are not recognized but are disclosed,in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2010

A) Basis of Preparation of Financial Statements :

1. The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act,1956, subject to what is stated here in below as adopted consistently.

2. The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

3. The preparation of financial statements reqmres estimates and assumptions to be made that affect, the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

B) Fixed Assets :

Fixed assets are taken at cost, net of cenvat, less accumulated depreciation. All costs including borrowing costs till commencements of commercial production.

C) Depreciation & Amortisation :

1. Depreciation is provided on straight line method at the rate and in the manner prescribed in schedule XIV to the Companies Act, 1956.

2. Depreciation on incremental cost arising on account of transaction of foreign currency liabilities for acquisition land is amortized over the residual life of the respective assets.

3. Premium on leasehold land is amortized over the remaining life after commencement of commercial productions. 4 Goodwill and trade marks are amortized over a period of five and ten years respectively.

D) Foreign Exchange Transaction :

1. Foreign currency transactions remaining unsettled at the end of the year & not covered by foreign exchange contracts are translated at year end rates.

2. In respect of the transactions covered by forward contracts, the difference between the contract rate & the rate on the date of transaction is charged to profit & loss account over the period of the contract.

E) Inventories :

Inventories are valued at cost except of finished goods and by products. Finished goods are valued at lower of cost or market value and by products are valued at market value.

F) Sales :

Sales includes InterUnit Transfer, Excise Duty, Tax on Sales, Vat and are Net of Discounts.

G) Employees Benefits :

1. Shortterm employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

2. Post employment and other long term employee benefits are recognized as an expense in the profit and loss account for the year in which the employee has rendered service. The gratuity is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses are charged to the profit and loss account. Liability for leave encashment is provided for considering retirement of employees at year end.

H) Investment :

Investments are Carried at Cost.

(J) Taxes on Income :

Taxes on Income for Current Period has heen determined on the basis of Taxable Income and Tax Credits computed in accordance with provisions of Income Tax Act, 1961.

(J) Impairment of Assets:

The carrying amount of assets other than inventories is reviewed at each balance sheet date to determine whether there is any indication or impairment, if any, such indication exist the recoverable amount of the assets is estimated. An impairment loss is recognized whenever the carrying amount of an assets or its cash generating unit exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use which is determined based on the estimated future cash flow discounted on their present values. All impairment losses are recognized in compliance with AS28.

An impairment loss is reversed if there has been a change in estimated use to determine the recoverable amount and recognized in compliance with AS28.

(K) Provision, Contingent Liabilities and Contingent Assets :

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.