2.3 Material Accounting Policies:

(a) Property, plant and equipment

(i) Recognition and measurement:

Property, plant and equipment are measured
at cost less accumulated depreciation and
impairment losses, if any. Cost includes deemed
cost which represents the carrying value of
property, plant and equipment recognised as at
April 1, 2015 measured as per the Accounting
Standards notified under the Section 133 of the
Act, read together with Rule 7 of the Companies
(Accounts) Rules, 2014, which the Company
elected in accordance with Ind AS 101.

Cost comprises the purchase price net of any
trade discounts and rebates, any import duties
and other taxes (other than those subsequently
recoverable from the tax authorities), any
directly attributable expenditure in making
the asset ready for its intended use. Machinery
spares which can be used only in connection
with an item of property, plant and equipment
and whose use is expected to be irregular are
capitalised and depreciated over the useful
life of the spares or the principal item of the
relevant assets, whichever is lower.

Capital work-in-progress are items of property,
plant and equipment which are not yet
ready for their intended use and are carried
at cost, comprising direct cost and related
incidental expenses.

(ii) Depreciation:

Depreciation on property, plant and equipment
has been provided on the straight-line method
as per the useful life prescribed in Schedule II

to the Act except in respect of the following
category of assets, in which case the life of the
assets has been assessed based on technical
advice taking into account the nature of the
asset, the estimated usage of the asset, the
operating condition of the asset, past history
of replacement, maintenance support, etc.,
Freehold land is not depreciated.

impairment testing, goodwill is allocated to each
of the Company's cash-generating units (or groups
of cash-generating units) expected to benefit from
the synergies of the combination. Cash-generating
units to which goodwill has been allocated are tested
for impairment annually, or more frequently when
there is an indication that the unit may be impaired.
If the recoverable amount of the cash-generating
unit is less than the carrying amount of the unit,
the impairment loss is allocated first to reduce the
carrying amount of any goodwill allocated to the
unit and then to the other assets of the unit pro-rata
on the basis of the carrying amount of each asset in
the unit. An impairment loss recognised for goodwill
is not reversed in a subsequent period.

Intangible assets that the Company controls and
from which it expects future economic benefits are
capitalised upon acquisition and measured initially
for separately acquired assets, at cost comprising
of the purchase price (including import duties and
non-refundable taxes) and directly attributable
costs to prepare the assets for its intended use.
The useful life of an intangible asset is considered
finite where there is a likelihood of technical and
technological obsolescence.

Intangible assets that have finite lives are amortised
over their estimated useful lives as per the straight
line method unless it is practical to reliably determine
the pattern of benefits arising from the asset.

The estimated useful life and amortisation method
are reviewed at the end of each reporting period,
but the effect of any change in estimates being
accounted for on a prospective basis.

Intangible assets comprising software are amortised
over a period of 5 years. The amortisation period
for technical know-how has been assessed as 8
years, representing the period over which economic
benefits from the use of technical know-how are
expected to be utilized.

All intangible assets are tested for impairment.
Amortisation expenses, impairment losses and
reversal of impairment losses are considered
in the Statement of Profit and Loss. Thus, after
initial recognition an intangible asset is carried at
its costs less accumulated amortization and /or
impairment losses.

intangible Assets under development :

Expenditure on intangible items under development
is recognised as intangible assets under development
when, and only when, the company can demonstrate
all of the following:

• the technical feasibility of completing the asset
so that it will be available for use or sale;

• its intention and ability to complete and use or
sell the asset;

• how the asset will generate probable future
economic benefits (including the existence of a
market or internal use);

• the availability of adequate technical,
financial and other resources to complete the
development; and

• the ability to reliably measure the expenditure
attributable to the asset during its development.

Costs that meet the above criteria are capitalised as
intangible assets under development and are not
amortised. They are transferred to the appropriate
class of intangible assets when the asset is available
for its intended use and are then amortised over
their estimated useful lives. Expenditure that does
not meet these criteria is recognised as an expense
in the Statement of Profit and Loss as incurred.

(c) impairment of assets excluding goodwill

Impairment loss, if any, is provided to the extent, the
carrying amount of assets or cash generating units
exceed their recoverable amount.

Recoverable amount is higher of an asset's net selling
price and its value in use. Value in use is the present
value of estimated future cash flows expected to
arise from the continuing use of an asset or cash
generating unit and from its disposal at the end of
its useful life.

Impairment loss recognised in prior years are
reversed when there is an indication that the
impairment losses recognised no longer exist or
have decreased. Such reversals are recognised as an
increase in carrying amounts of assets to the extent
that it does not exceed the carrying amounts that
would have been determined (net of amortization
or depreciation) had no impairment loss been
recognised in previous years.

(d) Revenue recognition

Revenue from contracts with customers is
recognised on transfer of control of promised
goods or services to a customer at an amount that
reflects the consideration to which the Company
is expected to be entitled to in exchange for those
goods or services.

Revenue towards satisfaction of a performance
obligation is measured at an amount of transaction
price (net of returns and discounts) allocated to that
performance obligation. The discount is estimated
based on the expected value of outflow.

Sale of goods:

Revenue from sale of products is recognised when
control of the goods have been transferred to the
customer. The performance obligation in case of sale
of product is satisfied at a point in time i.e. when the
material is shipped to the customer or on delivery to
the customer, as may be specified in the contract.

Sales related warranties associated with batteries
cannot be purchased separately and they serve
as an assurance that the products sold comply
with agreed upon specifications. Accordingly, the
Company accounts for warranties in accordance
with Ind AS 37 Provisions, Contingent Liabilities and
Contingent Assets.

Sale of services:

Revenue from installation, commissioning and
maintenance services is recognised based on the
contracts with customers and when the services are
rendered by measuring progress towards satisfaction
of performance obligation for such services.