a Basis of Preparation
The financial statements have been prepared in accordance with the Indian Accounting Standards
(Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015, as amended,
and other relevant provisions of the Companies Act, 2013. The Company follows the accrual
method of accounting and historical cost convention, except for certain financial instruments and
assets measured at fair value as required by relevant Ind AS.
b Use of estimates
The preparation of financial statements requires the management of the Company to make
estimates and assumptions that affect the reported balances of assets and liabilities and
disclosures relating to the contingent liabilities as at the date of the financial statements and
reported amounts of income and expense during the year. Examples of such estimates include
provisions for doubtful receivables, provision for income taxes, the useful lives of depreciable
Property, Plant and Equipment and provision for impairment. Future results could differ due to
changes in these estimates and the difference between the actual result and the estimates are
recognised in the period in which the results are known / materialise.
c Property, Plant and Equipment
Property, Plant and Equipment are stated at cost, less accumulated depreciation / amortisation.
Costs include all expenses incurred to bring the asset to its present location and condition.
d Depreciation / amortisation
In respect of Property, Plant and Equipment (other than freehold land and capital work-in¬
progress) acquired during the year, depreciation/amortisation is charged on a Straight Line
Method.
e Revenue recognition
Revenue from the sale of Goods are recognised upon delivery, which is when title passes to the
customer.
Revenue is reported net of discounts.
f Taxation
Current income tax expense comprises taxes on income from operations in India and in foreign
jurisdictions. Income taxpayable in India is determined in accordance with the provisions of the
Income Tax Act, 1961. Tax expense relating to foreign operations is determined in accordance with
tax laws applicable in countries where such operations are domiciled.
Deferred tax expense or benefit is recognised on timing differences being the difference between
taxable income and accounting income that originate in one period and is likely to reverse in one
or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates
and tax laws that have been enacted or substantively enacted by the balance sheet date.
The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable
right and these relate to taxes on income levied by the same governing taxation laws.
g Inventories
Raw materials are carried at the lower of cost and net realisable value. Cost is determined on a
weighted average basis. Purchased goods-in-transit are carried at cost. Work-in-progress is carried
at the lower of cost and net realisable value. Stores and spare parts are carried at lower of cost and
net realisable value. Finished goods produced or purchased by the Company are carried at lower of
cost and net realisable value. Cost includes direct material and labour cost and a proportion of
manufacturing overheads.
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