1.01 Basis of Preparation of Financial Statements:
These financial statements have been prepared in accordance with the Indian Accounting Standards (‘Ind AS’)
notified under the Companies (Indian Acconting Standards) Rules, 2015 and Companies (Indian Accounting
Standards) Amendment Rules, 2016 (as amended from time to time and presentation requirements of
Schedule III of the Companies Act, 2013. The financial statements have been prepared under the historical
cost convention on accrual basis, except for certain financial instruments which are measured at fair value.
1.02 Use of Estimates:
The preparation of the financial statements requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported
income and expenses during the year. The Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable. Future results could differ due to these estimates and the
differences between the actual results and the estimates are recognised in the periods in which the results are
known / materialise.
1.03 Inventories/WIP:
Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if
any, except in case of by-products which are valued at net realisable value. Cost of inventories comprises of
cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing
them to their respective present location and condition. Cost of work-in-progress and finished goods includes
labour and manufacturing overheads, where applicable. Net realisable 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.Cost of raw materials, process chemicals, stores and spares, packing materials, trading and other
products are determined on weighted average basis.
1.04 Cash Flow Statement:
Cash flow are reported using indirect method, whereby net profit before tax is adjusted for effects of
transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments.
The cash flows from regular revenue generating, investing and financing activities of the company are shown
separately.
1.05 Provisions, Contingent Liabilities and Contingent Assets:
A provision is recognised when the Company has a present obligation as a result of past events and it is
probable that an outflow of resources will be required to settle the obligation in respect of which a reliable
estimate can be made. Contingent Liabilities are disclosed when there is a possible obligation arising from past
events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more
uncertain future events not wholly within the control of the Group or a present obligation that arises from past
events where it is either not probable that an outflow of resources will be required to settle the obligation or
reliable estimate of the amount cannot be made.
1.06 Depreciation:
Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Straight Line Method.
Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act,
2013. Purchased software / licenses are amortised over the period the benefits are expected to accrue.
1.07 Revenue Recognition:
Sales are recognised upon transfer of substantial risk and rewards of ownership in the goods to the buyers as
per the terms of the Contract and net of trade discounts,sales tax etc., where applicable.
Dividend income is recognised when the right to receive payment is established.
Interest income is recognised on a time proportion basis taking into account the amount outstanding and the
interest rate applicable.
Excise duty / Service tax is accounted on the basis of both, payments made in respect of goods cleared /
services provided and provisions made for goods lying in bonded warehouses.
Other items of the revenue are accounted for on accrual basis.
1.08 Property Plant And Equipment:
Property Plant And Equipments are carried at cost less accumulated depreciation and impairment losses, if
any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying Property
Plant And Equipment up to the date the asset is ready for its intended use and other incidental expenses
incurred up to that date. Subsequent expenditure relating to Property Plant And Equipment is capitalised only
if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed
standard of performance. (Also refer to policy on borrowing costs, impairment of assets).
Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they increase
the future benefits from the existing asset beyond its previously assessed standard of performance.
Projects under which assets are not ready for their intended use are disclosed under Capital Work-in-Progress.
1.09 Government grants
Government grants are recognised when there is reasonable assurance that the Group will comply with the
conditions attached to them and the grants will be received.
Government grants whose primary condition is that the Group should purchase, construct or otherwise
acquire capital assets are presented by deducting them from the carrying value of the assets. The grant is
recognised as income over the life of a depreciable asset by way of a reduced depreciation charge.
Other government grants are recognised as income over the periods necessary to match them with the costs
for which they are intended to compensate, on a systematic and rational basis.
1.1 Investments:
Current investments are carried at lower of cost and quoted/fair value, computed category-wise. Non Current
investments are stated at cost. Provision for diminution in the value of Non Current investments is made only
if such a decline is other than temporary.
1.11 Borrowing Costs
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as
part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs are charged to the Profit and Loss Statement in the period
in which they are incurred.
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