1. Material Accounting Policies Information
This note provides a list of the material accounting policies information adopted in the preparation of these financial statements.
The policies have been consistently applied to all the years presented, unless otherwise stated.
a. (i) Statement of Compliance
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”) [Companies (Indian Accounting Standards) Rules, 2015] and other
relevant provisions of the Act.
(ii) Basis of Preparation
All assets and liabilities have been classified as current or non-current, as per the Company’s normal operating cycle
and other criteria set out in Schedule III to the Companies Act, 2013, and as per Ind AS-1.
Based on the nature of products and their realization in cash and cash equivalents, the Company has ascertained its
operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.
(iii) Historical cost convention
The financial statements have been prepared on a historical cost basis, using the accrual method of accounting, except
for the following:
- Certain financial assets and liabilities (including derivative instruments) that are measured at fair value;
- Defined Benefit Plans — Plan Assets measured at fair value;
- Share Based payments - measured at fair value
The financial statements are presented in Indian Rupees (?) and all values are rounded to the nearest Lakhs (INR) up
to two decimals, except when otherwise indicated.
b. Segment Reporting
Ind AS 108 - Operating Segments, requires Management to determine reportable segments for the purpose of disclosure
in financial statements, based on internal reporting reviewed by the Chief Operating Decision Maker (CODM) to assess
performance and allocate resources. The standard also requires Management to make judgments with respect to aggregation
of certain operating segments into one or more reportable segments.
The Company has determined that the Chief Operating Decision Maker (CODM) is the Board of Directors (BOD), based
on its internal reporting structure and functions of BOD. The Operating Segment used to present segment information
identified is based on the internal reports is used and reviewed by the BOD to assess performance and allocate resources. The
Management has determined that some of the segments exhibit similar economic characteristics and meet other aggregation
criteria and has accordingly aggregated them into reportable a primary operating segment i.e. “Specialty Chemicals”.
c. Foreign Currency Translation
(i) Functional and presentation currency: Items included in the financial statements are measured by using the currency
of the primary economic environment in which the entity operates (‘the functional currency’). The financial statements
are presented in Indian Rupees (INR), which is the Company’s functional and presentation currency.
(ii) Transactions and balances: Foreign currency transactions are translated into the functional currency by using the
exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation of monetary Assets and Liabilities denominated in foreign currencies at year end
exchange rates are generally recognized in the Statement of Profit and Loss.
(iii) Foreign exchange differences, regarded as an adjustment to borrowing costs, are presented in the Statement of Profit
and Loss as part of finance costs. All other foreign exchange gains and losses are presented in the Statement of Profit
and Loss on a net basis, as part of other gains / (losses).
d. Revenue Recognition
(i) Sales of Manufactured Goods: Revenue is measured at fair value of consideration received or receivable for goods supplied
or services rendered. Revenue from the sale of goods and services is recognized when the Company discharges its
obligation to its customer and when the amount of revenue can be measured reliably and the recovery of consideration
is probable. ‘Sales’ (including packing charges) which are net of returns, excluding amounts collected on behalf of third
parties, such as Goods and Services Tax. The Company derives its revenues primarily from the sale of manufactured
goods and related services.
Revenue from the sale of goods is recognized at the point of time when the control over the goods is transferred to the
customer, which is mainly upon the delivery of the goods, and in the case of services, in the period in which such
services are rendered, and there are no unfulfilled obligations.
Revenue from the sale of goods is measured at the fair value of consideration received or receivable, net of returns,
allowances and discounts.The Company does not adjust transaction prices for the time value of money, as it does not
expect to have any contracts where the period between the transfer of the promised goods or services to the customer
and payment by the customer exceeds one year.
Generally, the Company receives short-term advances from its customers. Using the practical expedient in Ind AS 115,
the Company does not adjust the promised amount of consideration for the effects of a significant financing component
if it expects, at contract inception, that the period between the transfer of the promised good or service to the customer
and when the customer pays for that good or service will be one year or less.
(ii) Recognition of Export Benefits: Export Benefit Entitlements are accrued as revenue in the year in which the export
sales are accounted for, only to the extent there is a reasonable assurance that the conditions attached to them will be
complied with, and the amounts will be received. Export benefit receivables are carried at net realisable value.
(iii) Other Income - Interest income from financial assets is recognised using the effective interest rate method. The
effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of
the financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the
Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for
example, prepayment, extension, call and similar options), but does not consider the expected credit losses. Interest
on Income-tax refund is accounted for when the right to receive is established.
e. Income Tax
Income Tax expense comprises of current tax expense and the net change in the deferred tax asset or liability during the
year. Current and deferred tax are recognized in the Statement of Profit and Loss, except when they relate to items that
are recognized in Other Comprehensive Income (OCI) or directly in equity, in which case, the current and deferred tax are
also recognized in OCI, or directly in equity, respectively.
Current Tax: Provision for current tax is made on the estimated taxable income after considering tax allowances, deductions
and exemptions determined in accordance with the applicable tax rates and the prevailing tax laws to the relevant assessment
year. The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on
the applicable income tax rate for each jurisdiction. The Company periodically evaluates positions taken in tax returns
with respect to situations in which the applicable tax regulation is subject to interpretation. It makes provisions wherever
appropriate on the basis of amounts expected to be paid to the tax authorities.
f. Deferred Tax
Deferred income tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are recognized
for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying
amount, except when the deferred income tax arises from the initial recognition of an asset or liability in a transaction that
is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.
Deferred Tax Assets are recognized only to the extent that it is probable that either future taxable profits or reversal of
Deferred Tax Liabilities will be available, against which the deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilized.
The carrying amount of a Deferred Tax Asset is reviewed at the end of each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit will be available to allow all or part of the Deferred Income Tax Asset
to be utilized.
Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively
enacted by the end of the reporting period and are expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled.
Deferred Tax Assets and Liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when it relates to income taxes levied by the same taxation authority and the Company intends to settle its
current tax assets and liabilities on a net basis.
g. Leases
The Company applied a single recognition and measurement approach for all leases for which it is the lessee, except for
short-term leases and leases of low value assets. The Company recognised lease liabilities to make lease payments and
right-of-use assets representing the right to use the underlying assets.
The lease liability is initially measured at the present value of the lease payments to be made over the lease term. In
calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement
date if the interest rate implicit in the lease is not readily determinable.
The lease term includes periods subject to extension options which the Company is reasonably certain to exercise and
excludes the effect of early termination options where the Company is reasonably certain that it will not exercise the option.
The right-of-use asset recognised at lease commencement includes the amount of lease liability recognised, initial direct
costs incurred, and lease payments made at or before the commencement date, less any lease incentives received. Right-
of-use assets are depreciated over the shorter of the asset’s estimated useful life and the lease term.
Land (Leasehold) is carried at cost less amortization;
Leasehold land is amortized on the straight line method over the period of lease.
The Company elected to use the recognition exemptions for lease contracts that, at the commencement date, have a lease
term of 12 months or less and do not contain a purchase option (short-term leases), and lease contracts for which the
underlying asset is of low value (low-value assets). Costs associated with such leases are recognised as an expense on a
straight-line basis over the lease term.
Lease liability and ROU assets have been separately presented in the Balance Sheet and lease payments have been classified
as financing cash flows.
For a lease modification that is not a separate lease, at the effective date of the modification, the lessee accounts for the
lease modification by remeasuring the lease liability using a discount rate determined at that date.
a) for lease modifications that decrease the scope of the lease, the lessee decreases the carrying amount of the right-of-use
asset to reflect the partial or full termination of the lease, and recognises a gain or loss that reflects the proportionate
decrease in scope; and
b) for all other lease modifications, the lessee makes a corresponding adjustment to the right-of-use asset.
h. Impairment of Assets
If internal / external indications suggest that an asset of the Company may be impaired, the recoverable amount of the
asset/ cash generating unit is determined on the date of Balance Sheet and if it is less than its carrying amount, the carrying
amount of asset/ cash generating unit is reduced to the said recoverable amount. Subsequently, if there is a change in the
indication, since the last impairment was recognized, so that recoverable amount of an asset exceeds its carrying amount,
an impairment recognized for an asset in prior accounting period is reversed. The recoverable amount is measured as the
higher of the net selling price and value in use of such assets/ cash generating unit, which is determined by the present
value of the estimated future cash flows.
An impairment of Intangible Assets is conducted annually, or more often, if there is an indication of any decrease in value.
The impairment loss, if any, is charged to the Statement of Profit and Loss.
i. Cash and Cash Equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents include cash on hand, deposits
held at call with financial institutions, other short-term, highly liquid investments, with original maturities of three months
or less, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value. Bank overdrafts are shown as a part of borrowings in Current Liabilities in the Balance Sheet.
j. Trade Receivables
Trade receivables are recognized and measured at amortized cost less provision for expected credit losses, if any.
k. Investments
(i) Investments are carried at cost, less accumulated impairment, if any.
(ii) Profit or loss on sale of investments, if any, is calculated by considering the weighted average amount of the total
holding of the investment.
(iii) Normal purchases and sales are recognised on trade-dates, being the date on which the Company commits to purchase
or sale the Investment.
l. Inventories
(i) Raw materials, packing materials, stores and spares, furnace oil and fuel are valued at cost and net realizable value,
whichever is lower. Cost comprises of basic cost (net of GST, if any) and other costs incurred in bringing them to their
respective present location and condition. Cost is determined on a Weighted Average basis.
(ii) Work-in-Progress and finished goods are valued at cost and net realizable value, whichever is lower. Cost includes
all direct costs and a proportion of other fixed manufacturing overheads, based on normal operating capacity. Cost is
determined on a weighted average basis. Net realizable value is the estimated selling price in the ordinary course of
business, less the estimated costs of completion and the estimated costs necessary to make the sale.
Goods and materials in transit are valued at actual cost incurred up to the date of balance sheet.
However, materials and other items held for use in production of finished goods are not written down below the cost
if the finished goods in which they will be incorporated are expected to be sold above cost.
(iii) Catalysts which have a life of less than one year are treated as inventory and are valued at cost and net realizable
value, whichever is lower. Cost comprises of basic cost (net of GST, if any) and other costs incurred in bringing them
to their respective present location and condition. Cost is determined on a weighted average basis.
m. Financial Instruments
Initial recognition
The Company recognizes financial assets and liabilities when it becomes a party to the contractual provisions of
the instrument. All financial assets and liabilities are recognised at fair value on initial recognition, except for trade
receivables which are initially measured at the transaction price and financial liabilities are initially measured at fair
value.
Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities
(other than financial assets and financial liabilities at fair value through the Statement of profit and loss) are added
to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through
the Statement of Profit and Loss are recognised immediately in the Statement of Profit and Loss.
n. I. Financial assets
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value,
depending on the classification of the financial assets.
Classification and subsequent measurement
(i) Financial assets carried at amortised cost:
A financial asset is subsequently measured at amortised cost if it is held within a business model, whose objective is
to hold the asset to collect contractual cash flows and when the contractual terms of the financial asset give rise on
specified dates, to cash flows that are solely payments of principal and interest on the principal amount outstanding.
(ii) Financial assets at fair value through other comprehensive income (‘FVOCI’):
Financial assets that are held within a business model whose objective is achieved by both, selling financial assets
and collecting contractual cash flows that are solely payments of principal and interest, are subsequently measured
at fair value through Other Comprehensive Income.
(iii) Financial assets at fair value through profit or loss (‘FVTPL’):
A financial asset which is not classified in the above categories is subsequently fair valued through the Statement of
Profit and Loss. Further, financial assets that are equity instruments are classified as fair value through the Statement
of Profit and Loss.
Impairment of financial assets
The Company applies the expected credit loss for recognising impairment loss on financial assets measured at amortised
cost, debt instruments at FVTOCI, trade receivables, other contractual rights to receive cash or other financial asset.
The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current
and estimated future economic conditions.
Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only
when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them
on net basis or to realise the assets and settle the liabilities simultaneously.
Derecognition of financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when
it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.
II. Financial liabilities
Financial liabilities that are not held for trading and are not designated as at FVTPL, are measured atamortised cost at
the end of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured
at amortised cost are determined based on the effective interest method. Interest expense that is not capitalised as part of
costs of an asset is included under ‘Finance costs’.
All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL.
Derecognition of financial Liablities
The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled
or have expired.
o. Derivative Financial Instruments and Hedge Accounting
In order to manage its exposure to foreign currency risks for highly probable forecast transactions for exports and imports,
the Company enters into forward contracts. The Company does not use derivatives for trading or speculation purposes.
At the inception of the hedge relationship, the Company documents the relationship between the hedging instrument and
the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions.
All derivative contracts are initially recognized at fair value, on the date the derivative contract is entered into, and are
subsequently re-measured to their fair value at the end of each reporting period. The accounting for subsequent changes
in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item
being hedged and the type of hedge relationship designated.
The Company designates certain derivatives as either:
(a) hedges of the fair value of recognised assets or liabilities (fair value hedge); or
(b) hedges of a particular risk associated with a firm commitment or a highly probable forecasted transaction (cash flow
hedges).
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the Statement
of Profit and Loss, together with any changes in the fair value of the hedged asset or liability that are attributable to the
hedged risk.
The effective portion of changes in the fair value of derivatives, that are designated and qualified as cash flow hedges, is
recognized in Other Comprehensive Income as equity under Cash Flow Hedge Reserve. The ineffective portion of changes
in the fair value of the derivative is recognised in the Statement of Profit and Loss. Gains or losses accumulated in the
equity are reclassified to Statement of Profit and Loss when the impact from hedged item is recognized in the Statement
of Profit and Loss.
p. Property, Plant and Equipment and Others
(i) The Company has adopted the cost model as its accounting policy for all its Property, Plant and Equipment and,
accordingly, the same are reflected as under:
Land (Freehold) is carried at cost;
Other items of Assets are carried at cost less accumulated depreciation/amortization and impairment losses, if any.
(ii) The cost comprises of purchase price (net of goods and service tax), including import duties and non-refundable taxes,
after deducting trade discounts and rebates, plus any costs incurred which are directly attributable to bringing the asset
to the location and condition necessary for it to be capable of operating in the manner intended by management, and
interest on borrowings, if any, attributable to the acquisition of qualifying assets, up to the date on which the asset is
ready for its intended use. It also includes exchange difference capitalized, if any, in terms of Ind AS 21 on “Effects
of Changes in Foreign Exchange Rates”.
(iii) Items of Property, Plant and Equipment, which are not yet ready to be capable of operating in the manner intended
by management, are carried at cost, comprising direct cost, related incidental expenses and attributable interest, and
are disclosed as “Capital Work-in-progress”. Advances paid towards the acquisition of Property, Plant & Equipment,
outstanding as at the Balance Sheet date, are classified as “Capital Advances” under “Other Non-current Assets”.
(iv) Subsequent costs are included in the carrying amount of the assets or are recognised as a separate asset, as appropriate,
only if it is probable that the future economic benefits associated with the item will flow to the Company and that the
cost of the item can be reliably measured. The carrying amount of any component accounted for as a separate asset is
derecognised when replaced. All other repairs and maintenance are charged to the Statement of Profit and Loss during
the reporting period in which they are incurred.
(v) Intangible Assets which are not ready for the intended use on the date of the Balance Sheet are disclosed as “Intangible
Assets under Development”.
(vi) Items of Property, Plant and Equipment which are retired from active use and held for disposal, and where the sale
is highly probable, are classified as ‘Assets held for disposal” under “Other Current Assets”. The same are carried at
the lower of their carrying amount and net realizable value.
Depreciation methods, estimated useful lives and residual value
(i) The charge of depreciation on Property, Plant and Equipment is commenced when the relevant asset is available for
use, i.e. when it is in the location and condition necessary for it to be capable of operating in the manner intended
by management.
(a) Where the cost of a part of the asset which is significant to the total cost of the asset and useful life of the part is
different from the useful life of the remaining asset, the Company has determined the useful life of the significant
part separately (“Component Accounting”) and, accordingly, provided depreciation on such parts.
(b) Depreciation is charged on a pro-rata basis on the straight line method, as per the useful lives prescribed under
Schedule II of the Companies Act, 2013. Depreciation on Plant and Machinery (including those identified under
the Component Accounting), other than those not specifically covered under the classification as per Schedule II
of the Companies Act, 2013, is provided on the straight line method over the useful lives, as determined by the
internal technical evaluation done by the management’s expert, which are as follows:
Spare parts, stand-by equipment and servicing equipment: 10 years.
Catalyst: 2 to 9 years.
Special Plant & Machinery: 5 to 12 years.
Roads : 15 to 25 years
Buildings : 3 to 30 years
Leasehold Improvements are depreciated over the useful life of lease term.
The Management believes that the useful lives, as determined, best represent the period over which it expects to
use these assets. Hence, the useful lives for such Plant and Machinery and Roads are different from the useful
lives as prescribed under Part C of Schedule II of Companies Act, 2013.
Depreciation method, useful life and residual values are reviewed at each balance sheet date and changes, if any,
are accounted prospectively .
(ii) Intangible Assets are amortized on the straight line method over their estimated useful life as follows:
Development of R & D Products/Processes (Internally generated): 5 years.
REACH Registration: 5 years.
Computer Software: 10 years.
(iii) Depreciation on assets purchased/sold during the period is proportionately charged from / up to the month, on which
it is available for use/ disposed off, as the case may be.
(iv) The residual values are not more than 5% of the original cost of the assets. The residual values and useful lives of the
assets are reviewed and adjusted if found appropriate.
q. Government Grant
The Company recognizes government grants only when there is reasonable assurance that the conditions attached to the
grants would be complied with and the grants will be received. Government grants related to revenue are recognized on
a systematic basis in the Statement of Profit and Loss, over the periods necessary to match them with the related costs,
which they are intended to compensate.
Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as
deferred income and are recognized in the Statement of Profit or Loss on a straight-line basis, over the expected lives of
the related assets and disclosed under the head “Other Income”.
r. Trade and Other Payables
These amounts represent liabilities for goods and services provided to the Company, prior to the end of the financial year,
which are unpaid. Trade and other payables are presented as Current Liabilities, if payment is due within 12 months from
the reporting period. They are recognized initially at their fair value and subsequently measured at amortized cost, using
the effective interest method.
These amounts represent liabilities for goods and services provided to the Company, prior to the end of the financial year,
which are unpaid. Trade and other payables are presented as Current Liabilities, if payment is due within 12 months from
the reporting period. They are recognized initially at their fair value and subsequently measured at amortized cost, using
the effective interest method.
s. Borrowings
Borrowings are initially valued at their contractual obligations, net of transaction costs incurred. Borrowings are subsequently
measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the amount due for
repayment is recognized in the Statement of Profit or Loss over the period of the borrowings, using the effective interest
method.
Borrowings are derecognised from the Balance Sheet when the obligation specified in the contract is discharged, cancelled
or expired.
Borrowings are classified as Current Liabilities, unless the Company has an unconditional right to defer settlement of the
liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term
loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand
on the reporting date, the Company does not classify the liability as current, if the lender has not demanded payment after
the reporting period and before the approval of the financial statements, as a consequence of the breach.
t. Borrowing Costs
Borrowing costs, general or specific, that are directly attributable to the acquisition or construction of qualifying assets are
capitalized as part of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready
for intended use.
Other borrowing costs are expensed in the period in which they are incurred. Borrowing costs comprise of interest and
other costs incurred in connection with borrowing of funds.
Borrowing Cost includes exchange differences arising from foreign currency borrowings, to the extent they are regarded as
an adjustment to the finance cost.
u. Employee Benefits
(i) Short-term obligations: Liabilities for wages and salaries, including non-monetary benefits that are expected to be
settled wholly within 12 months after the end of the period in which the employees render the related service, are
recognized in respect of employees’ services up to the end of the reporting period and are measured at the amounts
expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations
in the Balance Sheet.
(ii) Post-employment obligations: The Company operates the following post-employment schemes:
(a) Defined benefit plans such as gratuity: In accordance with applicable Indian laws, the Company provides for
gratuity, a defined benefit retirement plan (‘Gratuity Plan’) covering all employees. The Gratuity Plan provides
by way of a lump sum payment to vested employees, at retirement or termination of employment, an amount
based on the respective employee’s last drawn salary and the years of employment with the Company. Liability
with regard to Gratuity Plan is accrued based on actuarial valuation at the Balance Sheet date, carried out by
an independent actuary. Actuarial gain or loss is recognized immediately in the Other Comprehensive Income
or Expense (OCI). The Company has an employee gratuity fund managed by Life Insurance Corporation of India
(‘LIC’), to the exclusion of the Managing Director, for whom, also, necessary provision is made based on an actuarial
valuation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation
and the fair value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and
Loss.
Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions
are recognized in the period in which they occur, directly in OCI. They are included under the head “Retained
Earnings” in the “Statement of Changes in Equity” in the Balance Sheet.
Changes in the present value of the defined benefit obligation, resulting from plan amendments or curtailments,
are recognized immediately in the Statement of Profit and Loss, as past service cost.
(iii) Share based payment transactions:
Employee Stock Option Plans (“ESOPs”):
The fair value of options determined calculated using Black-Scholes-Merton model at the grant date is recognized as an
employee expense on a straight line basis (on the basis of multiple vesting of options granted), with a corresponding
increase in “Other Equity” under “Employee Stock Options Outstanding account”, over the vesting period of the
grant, where the employee becomes unconditionally entitled to the options. At the end of each reporting period, the
Company revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the
original estimates, if any, is recognised in the Statement of Profit and Loss, such that the cumulative expenses reflects
the revised estimate, with a corresponding adjustment to the “Employee Stock Options Outstanding account”.
Stock Options are granted to eligible employees in accordance with “Alkyl Amines Employees Stock Option Plan”
(ESOPs 2018), as approved by the Shareholders and the Nomination and Remuneration Committee of the Board of
Directors (the Committee) in accordance with the SEBI (Share based employee benefits) Regulations, 2014.
Eligible employees for this purpose includes employees falling under the following schemes:
Plan A : Rewards ESOPs (based on past performance)
Plan B : Retention ESOPs (based on future performance)
Under Ind AS 102 on Share based Payment, the cost of stock options is recognised based on the fair value of stock
options as on the grant date (refer note 37b).
v. Cash flows
Cash flows are reported using the indirect method, whereby profit or loss for the period is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item
of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and
financing activities of the Company are segregated. For presentation in the statement of cash flows, cash and cash equivalents
does not includes cash credit and overdraft facility.
w. Contributed Equity
Equity shares are classified as Equity. Incremental costs directly attributable to the issue of new shares or options are shown
in equity as a deduction, net of tax, from the proceeds.
x. Earnings Per Share
(i) Basic earnings per share: It is calculated by dividing the profit attributable to owners of the Company by the weighted
average number of equity shares outstanding during the financial year.
(ii) Diluted earnings per share: Diluted earnings per share adjust the figures used in the determination of basic earnings
per share to take into account:
(a) The after income tax effect of interest and other financing costs associated with dilutive potential equity shares,
and
(b) The weighted average number of additional equity shares that would have been outstanding assuming the conversion
of all dilutive potential equity shares, except where the results would be anti-dilutive.
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