1 Material Accounting Policies:
1.1 Statement of compliance:
These financial statements comprising of Balance
Sheet, Statement of Profit and Loss including other
comprehensive income, Statement of Changes in
Equity and Statement of Cash Flows as at March
31, 2026 have been prepared in accordance with
and in compliance, in all material aspects, with
Indian Accounting Standards (Ind AS) notified
under Section 133 of the Companies Act, 2013
(the "Act") read along with Companies (Indian
Accounting Standards) Rules, as amended and
other provisions of the Act.
The presentation of the Financial Statements is
based on Division II of Schedule III of the Act. The
financial statements are presented in Indian Rupee
("INR") and all values are rounded to the nearest
million as per the requirement of Schedule III,
except when otherwise indicated.
1.2 Basis of Preparation of Financial Statements:
The financial statements have been prepared on
the historical cost basis and accrual basis except
for the followings:
• Financial assets and liabilities measured at
fair value or at amortised cost depending on
classification; (Refer note no 1.16 and 1.17 )
• Derivative financial instruments measured at
fair value; (Refer note no 1.18)
• Assets held for sale - measured at fair value
less cost to sell; (Refer note no 1.31)
• Employee's Defined benefit plans measured
as per actuarial valuation; (Refer note no 1.6 )
• Lease liability and Right-of-use assets -
measured at fair value; (Refer note no 1.4) and
• Share based payments - measured at fair
value.(Refer note no 1.7 )
Accounting policies have been consistently
applied except where a newly-issued accounting
standard is initially adopted or a revision to an
existing accounting standard requires a change in
accounting policy.
Fair value is the price that would be received to
sell an asset or paid to transfer a liability in an
orderly transaction between market participants
at the measurement date, regardless of whether
that price is directly observable or estimated using
another valuation technique. In estimating the fair
value of an asset or a liability, the Company takes
into account the characteristics of the asset or
liability if market participants would take those
characteristics into account when pricing the asset
or liability at the measurement date. Fair value
for measurement and/or disclosure purposes in
these financial statements is determined on such
a basis, except for measurements that have some
similarities to fair value but are not fair value, such
as net realizable value in Ind AS 2 or value in use in
Ind AS 36.
I n addition, for financial reporting purposes, fair
value measurements are categorized into Level 1,
2, or 3 based on the degree to which the inputs
to the fair value measurements are observable
and the significance of the inputs to the fair value
measurement in its entirety, which are described
as follows:
• Level 1 inputs are quoted prices (unadjusted)
in active markets for identical assets or
liabilities that the Company can access at the
measurement date;
• Level 2 inputs are inputs, other than quoted
prices included within Level 1, that are
observable for the asset or liability, either
directly or indirectly; and
• Level 3 inputs are unobservable inputs for the
asset or liability.
The principal accounting policies are set out below.
1.3 Revenue Recognition:
a) Revenue from contracts with customer
Revenue from sale of goods is recognised
when control of the products being sold is
transferred to the customer and when there
are no longer any unfulfilled obligations. The
Performance Obligations in our contracts are
fulfilled at the time of dispatch, delivery or
upon formal customer acceptance depending
on terms with customers.
Revenue is measured on the basis of
transaction price, which is the consideration,
adjusted for volume discounts, rebates,
schemes allowances, price concessions,
incentives, amounts collected on behalf of
government and returns, if any, as specified in
the contracts with the customers. Revenue is
only recognised to the extent that it is highly
probable a significant reversal will not occur.
b) Export incentives are recognized in the year
where there is a reasonable assurance that
the company will comply with the conditions
attaching to it and that the export incentive
will be received.
c) Other income
Dividend income from investments is
recognized when the shareholder's right
to receive payment has been established,
provided that it is probable that the economic
benefits will flow to the Company and the
amount of income can be measured reliably.
Interest income from a financial asset is
recognized when it is probable that the
economic benefits will flow to the Company
and the amount of income can be measured
reliably. Interest income is accrued on a
time basis, by reference to the principal
outstanding and at the effective interest
rate applicable, which is the rate that exactly
discounts estimated future cash receipts
through the expected life of the financial asset
to that asset's net carrying amount on initial
recognition.
1.4 Lease
At inception of a contract, the Company assesses
whether a contract is, or contains, a lease. 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.
The Company recognises a right-of-use asset and
a lease liability at the lease commencement date
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
lease payments associated with these leases are
recognized as an expense in the Statement of
Profit and Loss on a straight-line basis over the
lease term.
Lease term is a non-cancellable period together
with periods covered by an option to extend the
lease if the Company is reasonably certain to
exercise that option; and periods covered by an
option to terminate the lease if the Company is
reasonably certain not to exercise that option.
The right-of-use asset is initially measured at
cost, which comprises the initial amount of the
lease liability adjusted for any lease payments
made at or before the commencement date, plus
any initial direct costs incurred and an estimate
of costs to dismantle and remove the underlying
asset or to restore the underlying asset or the site
on which it is located, less any lease incentives
received. The right-of-use asset is subsequently
depreciated using the straight-line method from
the commencement date to the end of the lease
term, unless the lease transfers ownership of
the underlying asset to the Company by the end
of the lease term or the cost of the right-of- use
asset reflects that the Company will exercise a
purchase option. In that case the right-of-use
asset will be amortised over the useful life of the
underlying asset. In addition, the right-of-use asset
is periodically reduced by impairment losses, if any,
and adjusted for certain remeasurements of the
lease liability.
The lease liability is initially measured at the present
value of the lease payments to be paid over the
lease term at the commencement date, discounted
using the interest rate implicit in the lease or, if that
rate cannot be readily determined, the Company's
incremental borrowing rate. Generally, the
Company uses its incremental borrowing rate as
the discount rate. Subsequently, the lease liability
is measured at amortised cost using the effective
interest method.
1.5 Foreign Currencies:
In preparing the financial statements of the
Company, transactions in currencies other than the
Company's functional currency (foreign currencies)
are recognized at the rates of exchange prevailing
at the dates of the transactions. At the end of each
reporting period, monetary items denominated
in foreign currencies are retranslated at the rates
prevailing at that date. Non-monetary items carried
at fair value that are denominated in foreign
currencies are retranslated at the rates prevailing
at the date when the fair value was determined.
Non-monetary items that are measured in terms
of historical cost in a foreign currency are not
retranslated.
Exchange differences on monetary items are
recognized in profit or loss in the period in which
they arise.
1.6 Employee Benefits:
Short-term employee benefits
All employee benefits payable wholly within twelve
months of rendering the service are classified as
short-term employee benefits and are measured
on undiscounted basis. Benefits such as salaries,
wages, etc. and the expected cost of ex-gratia are
recognised in the period in which the employee
renders the related service. A liability is recognised
for the amount expected to be paid if the Company
has a present legal or constructive obligation to pay
this amount as a result of past service provided by
the employee and the obligation can be estimated
reliably.
Retirement benefits
Payments to defined contribution retirement
benefit plans are recognized as an expense when
employees have rendered service entitling them to
the contributions.
For defined benefit retirement plans, the cost of
providing benefits is determined using the projected
unit credit method, with actuarial valuations being
carried out at the end of each annual reporting
period. Remeasurement, comprising actuarial
gains and losses, the effect of the changes to
the asset ceiling (if applicable) and the return on
plan assets (excluding net interest), is reflected
immediately in the Balance Sheet with a charge or
credit recognized in Other Comprehensive Income
in the period in which they occur. Remeasurement
recognized in Other Comprehensive Income is
reflected immediately in retained earnings and is
not reclassified to profit or loss. Past service cost is
recognized in profit or loss in the period of a plan
amendment. Net interest is calculated by applying
the discount rate at the beginning of the period to
the net defined benefit liability or asset. Defined
benefit costs are categorized as follows:
• Service cost (including current service cost,
past service cost, as well as gains and losses
on curtailments and settlements);
• Net interest expense or income; and
• Remeasurement
The Company presents the first two components
of defined benefit costs in profit or loss in the line
item 'Employee benefits expense! Curtailment
gains and losses are accounted for as past service
costs.
The retirement benefit obligation recognized in
the Balance Sheet represents the actual deficit or
surplus in the Company!s defined benefit plans.
Any surplus resulting from this calculation is limited
to the present value of any economic benefits
available in the form of refunds from the plans or
reductions in future contributions to the plans.
Termination benefits
A liability for a termination benefit is recognized
at the earlier of when the Company can no longer
withdraw the offer of the termination benefit
and when the Company recognizes any related
restructuring costs.
Other long-term employee benefits
Liabilities recognized in respect of other long-term
employee benefits such as compensated absences
are measured at the present value of the estimated
future cash outflows expected to be made by
the Company in respect of services provided by
employees up to the reporting date. These are
determined actuarially using the projected unit
credit method.
1.7 Share Based Payments
Equity-settled share based payments to employees
and others providing similar services are measured
at the fair value of the equity instruments at the
grant date.
The fair value determined at the grant date of the
equity-settled share based payments is expensed
on a straight line basis over the vesting period, based
on the Company's estimate of equity instruments
that will eventually vest, with a corresponding
increase in equity. 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 Statement of Profit and
Loss such that the cumulative expense reflects the
revised estimate, with a corresponding adjustment
to the Employee Stock Options Outstanding
Account.
The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.
1.8 Taxation:
Income tax expense represents the sum of the
current tax and deferred tax.
Current tax
The current tax payable is based on taxable profit
for the year. Taxable profit differs from 'profit before
tax' as reported in the Statement of Profit and Loss
because of items of income or expense that are
taxable or deductible in other years and items that
are never taxable or deductible. The Company's
current tax is calculated using tax rates that have
been enacted by the end of the reporting period.
Deferred tax
Deferred tax is recognized on temporary
differences between the carrying amounts of
assets and liabilities in the financial statements
and the corresponding tax bases used in the
computation of taxable profit. Deferred tax
liabilities are generally recognized for all taxable
temporary differences. Deferred tax assets are
generally recognized for all deductible temporary
differences to the extent that it is probable that
taxable profits will be available against which those
deductible temporary differences can be utilized.
Such deferred tax assets and liabilities are not
recognized if the temporary difference arises from
the initial recognition of assets and liabilities in a
transaction that affects neither the taxable profit
nor the accounting profit.
The carrying amount of deferred tax assets is
reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to
allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured
at the tax rates that are expected to apply in the
period in which the liability is settled or the asset
realized, based on tax rates (and tax laws) that have
been enacted or substantively enacted by the end
of the reporting period.
The measurement of deferred tax liabilities and
assets reflects the tax consequences that would
follow from the manner in which the Company
expects, at the end of the reporting period, to
recover or settle the carrying amount of its assets
and liabilities.
Current and deferred tax for the year
Current and deferred tax are recognized in profit
or loss, except when they relate to items that
are recognized in other comprehensive income
or directly in equity, in which case, the current
and deferred tax are also recognized in Other
Comprehensive Income or directly in equity
respectively.
1.9 Property, plant and equipment:
Property, plant and equipment held for use in the
production or supply of goods or services, or for
administrative purposes, are stated in the Balance
Sheet at cost less accumulated depreciation and
accumulated impairment losses.
When parts of an item of property, plant and
equipment have different useful lives, they
are accounted for as separate items (major
components) of property, plant and equipment
Subsequent costs are included in the carrying
amount of asset or recognised as a separate
asset, as appropriate, only when it is probable
that future economic benefits associated with the
item will flow to the Company and the cost of the
item can be measured reliably. All other repairs
and maintenance expenses are charged to the
Statement of Profit and Loss during the period in
which they are incurred.
The Company had applied for the one-time
transition exemption of considering the carrying
cost on the transition date i.e., 1st April, 2016 as the
deemed cost under Ind AS.
Property, plant and equipment which are not ready
for intended use as on the date of Balance Sheet
are disclosed as 'Capital work-in-progress'
Depreciation Methods, Estimated Useful Lives
and Residual Value
Depreciation is recognized so as to write off the
cost of assets (other than freehold land) less their
residual values over their useful lives prescribed
in Schedule II to the Companies Act, 2013, using
the straight-line method. The estimated useful
lives, residual values and depreciation method are
reviewed at the end of each reporting period, with
the effect of any changes in estimate accounted for
on a prospective basis.
An item of property, plant and equipment is
derecognized upon disposal or when no future
economic benefits are expected to arise from
the continued use of the asset. Any gain or loss
arising on the disposal or retirement of an item of
property, plant and equipment is determined as
the difference between the sales proceeds and the
carrying amount of the asset and is recognized in
profit or loss.
Freehold land is not depreciated.
For certain class of assets, based on the technical
evaluation and assessment, the Company believes
that the useful lives adopted by it best represent
the period over which an asset is expected to be
available for use. Accordingly, for these assets, the
useful lives estimated by the Company are different
from those prescribed in the Schedule II.
Useful lives of tangible assets
Estimated useful lives of the tangible assets are as
follows:
Buildings 30-60 years
Plant and Machinery 20 years
Furniture and Fixtures 10 years
Vehicles 8-10 years
Office Equipments and Computers 1-5 years
Capital work in progress is stated at cost less
accumulated impairment loss, if any.
1.10 Intangible Assets other than Goodwill:
Intangible assets acquired separately
Intangible assets with finite useful lives that
are acquired separately are carried at cost less
accumulated amortization and accumulated
impairment losses. Amortization is recognized on a
straight-line basis over their estimated useful lives.
The estimated useful life and amortization method
are reviewed at the end of each reporting period,
with the effect of any changes in estimate being
accounted for on a prospective basis. Intangible
assets with indefinite useful lives that are acquired
separately are carried at cost less accumulated
impairment losses.
De-recognition of intangible assets
An intangible asset is derecognized on disposal,
or when no future economic benefits are expected
from use or disposal. Gains or losses arising from
de-recognition of an intangible asset, measured as
the difference between the net disposal proceeds
and the carrying amount of the asset are recognized
in profit or loss when the asset is derecognized.
Useful lives of intangible assets
Estimated useful lives of the intangible assets are
as follows:
I ntangible assets are amortized on a straight-line
basis over their technically assessed useful lives,
as mentioned below:
Software 5 years
License/Membership Fees 10 years
Website 5 years
1.11 I mpairment of tangible and intangible assets
other than goodwill:
At the end of each reporting period, the Company
reviews the carrying amounts of its tangible and
intangible assets to determine whether there is
any indication that those assets have suffered an
impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in
order to determine the extent of the impairment
loss (if any). When it is not possible to estimate
the recoverable amount of an individual asset,
the Company estimates the recoverable amount
of the cash-generating unit to which the asset
belongs. When a reasonable and consistent basis
of allocation can be identified, corporate assets are
also allocated to individual cash-generating units,
or otherwise they are allocated to the smallest
company of cash-generating units for which a
reasonable and consistent allocation basis can be
identified.
Intangible assets with indefinite useful lives
and intangible assets not yet available for use
are tested for impairment at least annually, and
whenever there is an indication that the asset may
be impaired.
Recoverable amount is the higher of fair value less
costs of disposal and value in use. In assessing
value in use, the estimated future cash flows are
discounted to their present value using a pre¬
tax discount rate that reflects current market
assessments of the time value of money and the
risks specific to the asset for which the estimates
of future cash flows have not been adjusted.
I f the recoverable amount of an asset (or cash¬
generating unit) is estimated to be less than its
carrying amount, the carrying amount of the
asset (or cash-generating unit) is reduced to
its recoverable amount. An impairment loss is
recognised immediately in profit or loss.
When an impairment loss subsequently reverses,
the carrying amount of the asset (or a cash¬
generating unit) is increased to the revised estimate
of its recoverable amount, but so that the increased
carrying amount does not exceed the carrying
amount that would have been determined had no
impairment loss been recognized for the asset (or
cash-generating unit) in prior years. A reversal of
an impairment loss is recognized immediately in
profit or loss.
1.12 Inventories:
Raw materials, work-in-progress, finished goods,
packing materials, stores, spares, components,
consumables and stock-in-trade are carried at
the lower of cost and net realizable value after
providing for obsolescence, if any. The comparison
of cost and net realizable value is made on an item-
by item basis.
in determining the cost of raw materials,
packing materials, stock-in-trade, stores, spares,
components and consumables, First-in-First-Out
(FIFO) method is used. Cost of inventory comprises
all costs of purchase, duties, taxes (other than those
subsequently recoverable from tax authorities) and
all other costs incurred in bringing the inventory to
their present location and condition.
Cost of finished goods and work-in-progress
includes the cost of raw materials, packing
materials, an appropriate share of fixed and
variable production overheads as applicable and
other costs incurred in bringing the inventories to
their present location and condition.
Finished goods and work in progress: cost includes
cost of direct materials and labour and a proportion
of manufacturing overheads based on the normal
operating capacity, but excluding borrowing costs.
Cost is determined on weighted average basis.
Materials in transit are valued at cost-to-date.
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