2. MATERIAL ACCOUNTING POLICIES

A. BASIS OF PREPERATION AND

PRESENTATION

(i) Compliance with Ind AS

These standalone financial statements have
been prepared in accordance with the Indian
Accounting Standards (hereinafter referred
to as the 'Ind AS') as notified by Ministry of
Corporate Affairs pursuant to Section 133 of
the Companies Act, 2013 ('Act') read with of
the Companies (Indian Accounting
Standards) Rules, 2015 as amended and
other relevant provisions of the Act and
guidelines issued by the Securities and
Exchange Board of India (SEBI). The
accounting policies are applied consistently
to all the periods presented in the financial
statements.

(ii) Historical cost convention

The financial statements have been prepared
on a historical cost basis except for certain
financial instruments which are measured at
fair value at the end of each reporting period.

(iii) Current and non-current classification

The All assets and liabilities have been
classified as current or non-current based on
the Company's normal operating cycle for
each of its businesses, as per the criteria set
out in the Schedule III to the Act.

(iv) Rounding of amounts

All amounts disclosed in the financial
statements and notes have been rounded off
to the nearest lakhs as per the requirement
of Schedule III, unless otherwise stated.

B. USE OF ESTIMATES AND JUDGEMENTS

The estimates and judgements used in the
preparation of the financial statements are
continuously evaluated by the Company and are
based on historical experience and various other
assumptions and factors (including expectations
of future events) that the Company believes to
be reasonable under the existing circumstances.
Differences between actual results and

estimates are recognized in the period in which
the results are known/materialized.

The said estimates are based on the facts and
events, that existed as at the reporting date, or
that occurred after that date but provide
additional evidence about conditions existing as
at the reporting date.

C. PROPERTY, PLANT AND EQUIPMENT

(INCLUDIG CAPITAL WORK-IN-PROGRESS)

On transition to Ind AS the Company had
adopted the optional exemption under Ind AS
101 to use the carrying value of the Property,
plant and equipment as the deemed cost.
Subsequently Property, plant and equipment are
stated at cost of acquisition or construction less
accumulated depreciation and accumulated
impairment losses, if any. For this purpose, cost
includes deemed cost which represents the
carrying value of property, plant and equipment
recognized as at 1st April, 2016 measured as per
the previous GAAP. Cost of acquisition or
construction is inclusive of freight, duties,
relevant taxes, incidental expenses and interest
on loans attributable to the acquisition of

qualifying assets, up to the date of
commissioning of the assets. Such cost includes
the cost of replacing part of the plant and
equipment and borrowing costs for qualifying
assets, upto the date of commissioning of the
assets. All repair and maintenance costs are
recognized in profit or loss as incurred. Assets
are classified to the appropriate categories of
property, plant and equipment when completed
and ready for intended use.

Capital work-in-progress - Assets which are not
yet ready for their intended use are carried at
cost comprising direct cost, related incidental
expenses and attributable interest.

Depreciation methods, estimated useful lives
and residual value

Depreciation on Property, plant and equipment
is provided to the extent of depreciable amount
on the Written Down Value Method on the basis
of useful life of the assets as prescribed in
Schedule II to the Companies Act, 2013 to
allocate their cost, net of their residual values,
over their estimated useful lives. Depreciation
on additions and deletion during the year has
been provided on pro rata basis with reference
to the date of addition and deletion. The residual
values and useful lives are reviewed and
adjusted if appropriate at the end of each
reporting period. Gains and losses on disposals,
if any, are determined by comparing proceeds
with carrying amount. These are included in the
statement of profit and loss within other income
or other expenses, as applicable.

D. INVESTMENT PROPERTY

Property that is held for long-term rental yields
or for capital appreciation or both, and that is
not occupied by the Company, is classified as
investment property. Investment property is
measured initially at its cost, including related
transaction costs and where applicable
borrowing costs. Subsequent expenditure is
capitalized to the asset's carrying amount only
when it is probable that future economic
benefits associated with the expenditure will
flow to the Company and the cost of the item
can be measured reliably. All other repairs and
maintenance costs are expensed when incurred.

Investment properties are depreciated using the
written down value method over their estimated
useful life.

E. IMPAIRMENT OF ASSETS

The carrying amount of assets are reviewed at
each balance sheet date if there is any indication
of impairment based on internal/external
factors. An impairment loss will be recognized in
the Statement of Profit and Loss wherever the
carrying amount of an asset exceeds its
estimated recoverable amount. When an
impairment loss subsequently reverses, the
carrying amount of the asset (or 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.
Provision for impairment will be reviewed
periodically and amended depending on
changes in circumstances.

F. CASH AND CASH EQUIVALENTS

Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short¬
term deposits with an original maturity of three
months or less, that are readily convertible to a
known amount of cash and subject to an
insignificant risk of changes in value.

For the purpose of presentation in the cash flow
statement, cash and cash equivalents includes
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, if any, are shown within borrowings
in current liabilities in the balance sheet.

G. TRADE RECEIVABLES

Trade receivables are amounts due from
customers for goods sold or services performed
in the ordinary course of business. Trade
receivables are recognized initially at fair value

and subsequently measured at amortized cost
using the effective interest method, less
provision for impairment, if any.

H. INVENTORIES

Raw materials, Packing Materials, stores, spares
& consumables, work in progress and finished
goods are stated at the lower of cost and net
realizable value. Cost of raw materials, packing
materials comprises cost of purchases, non¬
refundable purchase taxes and any directly
attributable expenses related to inventories.
Cost of raw materials, packing materials, stores,
spares & consumables is determined on a first in
first out method. Cost of work-in-progress and
finished goods comprises materials and
appropriate proportion of all variable and fixed
overhead expenditures, which is allocated on a
systematic basis.

Costs of inventories also include all other costs
incurred in bringing the inventories to their
present location and condition. Costs of
purchased inventory are determined after
deducting rebates and discounts, if any. 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.

I. INVESTEMENT IN SUBSIDIARIES

A subsidiary is an entity controlled by the
Company. Control exists when the Company has
power over the entity, is exposed, or has rights
to variable returns from its involvement with the
entity and has the ability to affect those returns
by using its power over the entity. Power is
demonstrated through existing rights that give
the ability to direct relevant activities, those
which significantly affect the entity's returns.

Investments in subsidiaries are carried at cost.
The cost comprises price paid to acquire
investment and directly attributable cost. The
Company reviews its carrying value of long term
investments in equity shares of subsidiaries
carried at cost at the end of each reporting
period. If the recoverable amount is less than its
carrying amount, the impairment loss is
accounted for.

J. TRADE AND OTHER PAYABLES

These amounts represent liabilities for goods
and services provided to the Company prior to
the end of financial year which are unpaid. Trade
and other payables are presented as current
liabilities unless payment is not due within
twelve months after the reporting period. They
are recognized initially at their fair value and
subsequently measured at amortized cost using
the effective interest method.

K. BORROWING

Borrowings are initially recognized at fair value,
net of transaction costs incurred. Borrowings are
subsequently measured at amortized cost. Any
difference between the proceeds (net of
transaction costs) and the redemption amount is
recognized in the statement of profit and loss
over the period of the borrowings using the
effective interest method. Fees paid on the
establishment of loan facilities are recognized as
transaction costs of the loan to the extent that it
is probable that some or all of the facility will be
drawn down. In this case, the fee is deferred until
the draw down occurs. Borrowings are classified
as current liabilities unless the Company has an
unconditional right to defer settlement of the
liability for at least twelve months after the
reporting period.

L. BORROWING COST

Borrowing Costs directly attributable to the
acquisition, construction and production of
qualifying assets, which are assets that
necessarily take a substantial period of time to
get ready for their intended use or sale, are
added to the cost of those assets, until such time
as the assets are substantially ready for their
intended use or sale. All other borrowing costs
are recognized in Profit and Loss in the period in
which they are incurred.