C) Summary of Material Accounting Policies:
Ind AS 1 was amended vide notification no G.S.R.242(E) dated 31st March 2023 to require disclosure of Material Accounting
Policy information from accounting periods beginning on or after 1 April 2023 instead of significant accounting policy disclosure
by amending paragraph 117, inserting paragraphs 117Ato 117E and deleting paragraphs 118 to 121 Paragraph 117 of Ind AS
1 states when an information on accounting policy Is considered as ‘Material Accounting Policy information1 as follows:
Accounting policy information is material if. when considered together with other information included In an entity's financial
statements, it can reasonably be expected to influence decisions that the primary users of general-purpose financial
statements make on the basis of those financial statements.
Each of the policy disclosed herein below has been tested to determine whether the information disclosed is Material
Accounting Policy information
1) Property, Plant and Equipment (PPE)
The Company has elected to continue with the carrying value of Property. Plant and Equipment (‘PPE') recognized as of
the transition date, measured as per the Previous GAAP and use that carrying value as its deemed cost
Properly, Plant and Equipment are stated at cost less accumulated depreciation and accumulated impairment losses
except for freehold land which Is not amortised
Any gain or loss arising on derecognition of an item of property, plant and equipment is determined as the difference
between the net disposal proceeds and the carrying amount of the asset and is recognized in Profit or Loss aggregated
with other income or other expense line item on net basis, respectively
The depreciable amount of an asset is determined after deducting its residual value Depreciation on the property, plant
and equipment, is calculated using the straight-line method over the useful life of assets based on management estimates
which is in line with the useful life indicated in Schedule II to the Companies Act. 2013. Given below are the estimated
useful lives for each class of property, plant and equipment
2) Intangible Assets:
Intangible assets acquired separately are measured on initial recognition at cost- After initial recognition, intangible assets
are carried at cost less any accumulated amortization and accumulated impairment losses.
Software (not being an integral part of the related hardware) and Technical Know How acquired for internal use are Treated
as intangible assets.
Any gain or loss arising from derecognition of an intangible asset is determined as the difference between the net disposal
proceeds and line carrying amount of the asset and is recognized in profit or loss with other Income or other expense line
item on net basis, respectively.
Intangible Assets are amortized over 3 to 10 years on straight-line method over the estimated useful economic life of the
assets.
3) Investment Property:
Investment properties are land and buildings that are held for long term lease rental yields and/ or for capital appreciation
Investment properties are Initially recognized at cost including transaction costs. Subsequently. Investment properties
comprising building are carried at cost less accumulated depreciation and accumulated impairment losses, if any.
Depreciation on Factory Building is provided over the estimated useful lives as specified in note 1 above.
The difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the
period of de-recognition.
4) Inventories:
Inventories consisting of stores and spares, raw materials, work in progress, and finished goods are measured at lower of
cost and net realizable value. However, materials held for use In production of inventories are not written down below cost,
if the finished products are expected to be sold at or above cosl
Cost of raw material, components and stores and spares is determined on a first in first out basis.
Cost of Work-in-progress and finished goods are includes direct materials and labour and a proportion of manufacturing
overheads based on normal operating capacity.
5) Leases:
The Company as a lessee
The Company's lease asset classes primarily consist of leases for land and building. The Company assesses whether a
contract contains a lease, at inception of a contract.
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.
The lease term includes extension or termination options when it is reasonably certain that they will be exercised.
The right of use assets are initially recognized at cost, and subsequently measured at cost less accumulated depreciation
and impairment losses.
Right of use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease
term and useful life of the underlying asset
The lease liability is initially measured 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.
Lease liabilities are remeasured with a cor responding 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
6) Government Grants:
Grants and subsidies from the government are recognized when there is reasonable assurance that (i) the Company will
comply with the conditions attached to them, and (ii) the grant/subsidy will be received
Where the grant relates to an asset under the EPCG Scheme, it is presented as a deferred income aggregated under other
liabilities In the Balance Sheet and presented under other income in profit and loss on a systematic and rational basis
associated with fulfillment of export obligation
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