2. Summary of Material Accounting Policies

2.1 Basis of preparation & Presentation

The Ind AS financial statements have been prepared to comply in all material respects with the
Accounting Standards notified under Section 133 of the Companies Act, 2013 ('the Act"), read with
relevant rules. The Ind AS financial statements have been prepared under the historical cost convention
on an accrual basis. The accounting policies have been consistently applied by the Company and are
consistent with those used in the previous year.

2.2 Statement of compliance with Indian Accounting Standards:

These Ind AS Financial Statements have been prepared in accordance with the Indian Accounting
Standards ('Ind AS') as notified by Ministry of Corporate Affairs ('MCA') under Section 133 of the
Companies Act, 2013 ('Act') read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended and other relevant provisions of the Act.

The material accounting policies adopted for preparation and presentation of these financial statements
are included in Note 2. These policies have been applied consistently by the Company for all the periods
presented in these financial statements.

2.3 Current and non-current classification

All assets and liabilities have been classified and presented as current or non-current in accordance with
the Company's normal operating cycle and other criteria set out in the Schedule III to the Act.

2.4 Functional and presentation currency

These Restated Financial Statements are presented in Indian Rupees (?), which is also the Company's
functional currency. All amounts have been rounded-off to the nearest lacs, unless otherwise indicated.

2.5 Use of estimates and judgements

The preparation of the Company's financial statements requires management to make judgements,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities,
and the related disclosures. Actual results may differ from these estimates.

• Recognition of deferred tax assets - The extent to which deferred tax assets can be recognised is
based on an assessment of the probability of the future taxable income against which the deferred tax
assets can be utilised.

• Business model assessment - The Company determines the business model at a level that reflects how
groups of financial assets are managed together to achieve a business objective. This assessment
includes judgement reflecting all relevant evidence including how the performance of the assets is
evaluated and their performance measured, the risks that affect the performance of the assets and how
these are managed and how the managers of the assets are compensated. The Company monitors
financial assets measured at amortised cost that are derecognised prior to their maturity to understand
the reason for their disposal and whether the reasons are consistent with the objective of the business
for which the asset was held. Monitoring is part of the Company's continuous assessment of whether
the business model for which the remaining financial assets are held continues to be appropriate and if
it is not appropriate whether there has been a change in business model and accordingly prospective
change to the classification of those assets are made.

• Evaluation of indicators for impairment of assets - The evaluation of applicability of indicators of
impairment of assets requires assessment of several external and internal factors which could result in
deterioration of recoverable amount of the assets

• Classification of leases - Ind 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 the 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. After
considering current and future economic conditions, the Company has concluded that no changes are
required to lease period relating to the existing lease contract.

• Provisions - At each Balance Sheet date, based on the management judgment, changes in facts and
legal aspects, the Company assesses the requirement of provisions against the outstanding contingent
liabilities. However, the actual future outcome may be different from this judgement.

2.7 Significant estimates:

• Useful lives of depreciable/amortisable assets - Management reviews its estimate of useful lives,
residual values, and method of depreciation of depreciable/amortisable assets at each reporting date,
based on the expected utility of the assets. Uncertainties in these estimates relate to technical and
economic obsolescence that may change the utility of assets.

• Fair value measurements - Management applies valuation techniques to determine the fair value of
financial instruments (where active market quotes are not available). This involves developing estimates
and assumptions consistent with how market participants would price the instrument.

2.8 Revenue

The Company has applied Ind AS 115 which establishes a comprehensive framework for determining
whether, how much and when revenue is to be recognized. The Standard requires apportioning revenue
earned from contracts to individual promises, or performance obligations, on a relative stand-alone
selling price basis, using a five-step model.

Revenue from sate of goods

Revenue is recognised upon transfer of control of promised product or services to customer in an
amount that reflect the consideration which the Company expects to receive in exchange for those
product or services at the fair value of the consideration received or receivable, which is generally the
transaction price, net of any taxes/duties and discounts.

The Company satisfies a performance obligation and recognises revenue over time, if one of the
following criteria is met:

a. The customer simultaneously receives and consumes the benefits provided by the Company's
performance as the Company performs; or

b. The Company's performance creates or enhances an asset that the customer controls as the
asset is created or enhanced; or

c. The Company's performance does not create an asset with an alternative use to the Company
and an entity has an enforceable right to payment for performance completed to date.

For performance obligations where one of the above conditions are not met, revenue is recognised at
the point in time at which the performance obligation is satisfied.

Revenue from sale of products is recognised at a time on which the performance obligation is satisfied.
Recognition in case of local sales is generally recognised on the dispatch of goods.

2.9 Tax expense

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

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable in respect of previous years. The amount of current
tax reflects the best estimate of the tax amount expected to be paid or received after considering the
uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or
substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off
the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or
simultaneously.

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the corresponding amounts used for taxation
purposes. Deferred tax is also recognised in respect of carried forward tax losses and tax credits.
Deferred tax is not recognised for:

- temporary differences arising on the initial recognition of assets or liabilities in a transaction
that is not a business combination and that affects neither accounting nor taxable profit or loss
at the time of the transaction;

- taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be
available against which they can be used. The existence of unused tax losses is strong evidence that
future taxable profit may not be available. Therefore, in case of a history of recent losses, the Company
recognises a deferred tax asset only to the extent that it has sufficient taxable temporary differences or
there is convincing other evidence that sufficient taxable profit will be available against which such
deferred tax asset can be realised.

Deferred tax assets - unrecognised or recognised, are reviewed at each reporting date and are
recognised/ reduced to the extent that it is probable/ no longer probable respectively that the related
tax benefit will be realised.

2.10 Inventories

Raw materials, stores and spares, work-in-progress, manufactured finished goods and traded goods are
valued at lower of cost or net realisable value. The comparison of cost and net realisable value is made
on an item-by-item basis. Cost comprises of all cost of purchase, cost of conversion and other cost
incurred in bringing them to their respective present location and condition. Cost is determined using
first in, first out method of inventory valuation.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs
of completion and estimated costs necessary to make the sale.

2.11 Leases

As lessee

The Company's lease asset classes primarily consist of leases for land and 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: (i) the contract involves the use of an identified asset (ii) the
Company has substantially all of the economic benefits from use of the asset through the period of the
lease and (iii) 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 (ROU) asset and a
corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a
term of 12 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 ROU 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.

ROU 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. ROU assets 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 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 remeasured with a corresponding adjustment to the related ROU asset if the
Company changes its assessment of whether it will exercise an extension or a termination option.

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

2.12 Cash and cash equivalents

Cash and cash equivalents consist of cash, bank balances in current accounts and short term highly
liquid investments that are readily convertible to cash with original maturities of three months or less at
the time of purchase and which are subject to an insignificant risk of changes in value, and bank
overdrafts. Bank overdrafts are shown within borrowings in current financial liabilities in the balance
sheet.