Note: -3:. MATERIAL ACCOUNTING POLICIES3.1 Property, plant and equipment:A. Recognition and Measurement:

Property, plant and equipment are stated at original
cost net of tax / duty credit availed, less accumulated
depreciation and accumulated impairment losses, if any.
Cost includes purchase price and all other attributable
cost of bringing the asset to working condition for
intended use. Finance costs relating to borrowing funds
attributable to acquisition of fixed assets are also included
in the cost, for the period till such asset is put to use.

When significant parts of property, plant and equipment
are required to be replaced at intervals, the Company
derecognizes the replaced part, and recognizes the new
part with its own associated useful life and it is depreciated
accordingly. Where components of an asset are significant
in value in relation to the total value of the asset as a
whole, and they have substantially different economic

lives as compared to principal item of the asset, they
are recognized separately as independent items and are
depreciated over their estimated economic useful lives.

All other repair and maintenance costs are recognized in
the statement of profit and loss as incurred unless they
meet the recognition criteria for capitalization under
Property, Plant and Equipment.

B. Depreciation and amortization:

Depreciation on tangible assets is provided on the
Straight-Line Method (SLM), net of residual values, over
the estimated useful life of the assets as prescribed under
Schedule II of the Companies Act, 2013. In respect of the
fixed assets purchased during the year, depreciation is
provided on pro-rata basis from the date on which such
asset is ready to be put to use.

Additional shift depreciation is provided on "Plant &
Machinery" on basis of their Extensive use.

C. De-recognition:

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 statement of
profit and loss.

3.2 Intangible Assets:

The intangible assets, that are not yet ready for their intended
use are carried at cost and are reflected under intangible assets
under development. Direct costs associated in developing the
intangible assets are capitalized when the following criteria are
met, otherwise, it is recognised in statement of profit and loss
as incurred.

• it is technically feasible to complete the intangible asset so
that it will be available for use,

• management intends to complete the intangible asset and
put it to use,

• there is ability to use the intangible asset,

• there is an identifiable asset that will generate expected
future economic benefits and

• there is an ability to measure reliably the expenditure
attributable to the intangible asset during its development

Intangible assets are amortized on written down value basis

over the useful life prescribed in Schedule II to the Companies
Act, 2013 or technical estimate made by the Company,
whichever is lower.

The estimated useful life of the intangible assets is reviewed at
the end of each financial year and the amortization method is
revised to reflect the changed pattern, if any.

An intangible asset is de-recognised on disposal or when no
future economic benefits are expected from its use. 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 recognised in the
standalone statement of profit and loss when the asset is de¬
recognised.

Impairment of intangible assets: The Company assesses at each
reporting date as to whether there is any indication that any
Intangible Assets may be impaired. If any such indication exists,
the recoverable amount of an asset is estimated to determine the
extent of impairment, if any. An impairment loss is recognised
in the statement of profit and loss to the extent, asset's carrying
amount exceeds its recoverable amount. The recoverable
amount is higher of an asset's fair value less cost of disposal and
value in use. Value in use is based on the estimated future cash
flows, discounted to their present value using pre-tax discount
rate that reflects current market assessments of the time value
of money and risk specific to the assets. The impairment loss
recognised in prior accounting period is reversed if there has
been a change in the estimate of recoverable amount.

3.3 Capital Work- in- progress:

Capital work in progress comprises materials and expenditure
related to and incurred during construction and development
of capital project to get assets ready for their intended use and
not completed as at reporting date. Cost of CWIP comprises
direct cost, borrowing cost and other directly attributable costs.

3.4 Lease:

A. Company as a lessee:

The Company applies a single recognition and
measurement approach for all leases, except for short¬
term leases and leases of low-value assets. The Company
as a lessee recognizes lease liabilities against lease
payments and right-of-use assets representing the right
to use the underlying assets.

a. Right of Use of asset

The right-of-use 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.

Right-of-use assets are depreciated from the
commencement date on a straight-line basis over
the lease term of the underlying asset.

Right-of-use 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.

b. Lease Liability:

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 the leases. Lease
liabilities are remeasured with a corresponding
adjustment to the related right of use asset if the
Group changes its assessment if whether it will
exercise an extension or a termination option.

Lease liability and Right-of-use asset have been
separately presented in the Balance Sheet and
lease payments have been classified as financing
cash flows.

The Company has elected not to recognize right-
of-use assets and lease liabilities for short-term
leases. The Company recognises the lease payments
associated with these leases as an expense on a
straight-line basis over the lease term.

3.5 Impairment of non-financial assets

The carrying amounts of assets are reviewed at each balance

sheet date if there is any indication of impairment based on

internal/external factors. An impairment loss is recognized
wherever the carrying amount of an asset exceeds its
recoverable amount. The recoverable amount is the greater of
the asset's net selling price and value in use. In assessing value
in use, the Company measures it on the basis of discounted
cash flows of next five years projections estimated based on
current prices. Assessment is also done at each Balance Sheet
date as to whether there is any indication that an impairment
loss recognized for an asset in prior accounting periods may
no longer exist or may have decreased. After impairment,
depreciation is provided on the revised carrying amount of the
asset over its remaining useful life.

3.6 Foreign Currency Transactions

The Company's financial statements are presented in INR, which
is also the Company's functional & reporting currency.

A. Initial Recognition:

Foreign currency transactions are recorded in the reporting
currency, by applying to the foreign currency amount, the
exchange rate between the reporting currency and the
foreign currency at the date of transaction.

B. Conversion:

Foreign currency monetary items are reported using the
closing rate. Non-monetary items, which are measured in
terms of historical costs denominated in foreign currency,
are reported using the exchange rate at the date of the
transaction. Non-monetary items, which are measured
at fair value or other similar valuation denominated in a
foreign currency, are translated using the exchange rate at
the date when such value was determined.

C. Exchange Differences:

Exchange differences arising on the settlement of
monetary items or on reporting Company's monetary
items at rates different from those at which they were
initially recorded during the year, or reported in previous
financial statements including receivables and payables
which are likely to be settled in foreseeable future, are
recognized as income or as expenses in the year in which
they arise. All other exchange differences are recognized
as income or as expenses in the period in which they arise.

Transactions covered under forward contracts are
accounted for at the contracted rate. All export proceeds
have been accounted for at the rate of exchange at the
time of raising invoices. Foreign exchange fluctuations
as a result of the export sales have been adjusted in the
statement of profit and loss and export proceeds not
realized at the balance sheet date are restated at the rate
prevailing as at the balance sheet date.

3.7 Revenue recognition

Revenue is recognized to the extent it is probable that the
economic benefits will flow to the Company and the revenue
can be reliably measured. Specifically,

A. Sale of goods:

It is recognized on transfer of significant risk and rewards
of ownership which is generally on shipment and dispatch
to customers and the performance obligations in our
contracts are fulfilled at a point in time i.e. at the time of
dispatch, delivery depending on customer terms.

Revenue towards satisfaction of a performance obligation
is measured at the amount of transaction price (net of
variable consideration) allocated to that performance
obligation. The transaction price of goods sold, and
services rendered is net of variable consideration on
account of various discounts and schemes offered by the
Company as part of the contract.

B. Contract Balances:

a. Trade Receivables:

A receivable represents the Company's right to an
amount of consideration that is unconditional.

b. Contract Liabilities:

A contract liability is the obligation to transfer
goods or services to a customer for which the
Company has received consideration (or an amount
of consideration is due) from the customer. If a
customer pays consideration before the Company
transfers goods or services to the customer, a
contract liability is recognized when the payment is
made. Contract liabilities are recognized as revenue
when the Company performs under the contract.

c. Other Operating and Non-Operating Income:

(i) Revenue/Loss from bargain settlement of
goods is recognized at the time of settlement
of transactions.

(ii) Export benefits/Value added tax benefits
are recognized as Income when the right to
receive credit as per the terms of the scheme
is established and there is no significant
uncertainty regarding the claim.

(iii) For all debt instruments measured either at
amortized cost or at fair value through other
comprehensive income [OCI], interest income
is recorded using the effective interest rate
[EIR]. EIR is the rate that exactly discounts the

estimated future cash payments or receipts over
the expected life of the financial instrument
or a shorter period, where appropriate, to the
gross carrying amount of the financial asset
or to the amortized cost of a financial liability.
When calculating the effective interest rate, the
Company estimates the expected cash flows
by considering all the contractual terms of the
financial instrument [for example, prepayment,
extension, call and similar options] but does
not consider the expected credit losses.

(iv) Interest income is recognized on time
proportion basis taking into account the
amount outstanding and rate applicable.

(v) Dividend income from investments is
recognized when the Company's right to
receive payment is established which is
generally when shareholders approve the
dividend.

3.8 Financial Instruments

A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity.

A. Financial Assets:a. Initial recognition and measurement:

All financial assets are recognized initially at fair value
plus, in the case of financial assets not recorded at fair
value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset.
Purchases or sales of financial assets that require
delivery of assets within a time frame established by
regulation or convention in the market place [regular
way trades] are recognized on the settlement date,
trade date, i.e., the date that the Company settles
commits to purchase or sell the asset.

The trade receivables that do not contain a
significant financing component are measured at
the transaction price determined under Ind AS 115.
Refer accounting policy in section 3.7 - Revenue
from contracts with customers.

b. Subsequent measurement:

For purposes of subsequent measurement, financial
assets are classified in four categories:

i. Debt instruments at amortized cost:

A'debt instrument'is measured at the amortized

instruments. Any debt instrument, which does
not meet the criteria for categorization as at
amortized cost or as FVTOCI, is classified as at
FVTPL. Debt instruments included within the
FVTPL category are measured at fair value with
all changes recognized in the P&L.

iv. Equity instruments measured at fair value
through other comprehensive income
[FVTOCI]:

All equity investments in scope of Ind AS 109
are measured at fair value. Equity instruments
which are held for trading and contingent
consideration recognized by an acquirer in a
business combination to

which Ind AS103 applies are classified as
at FVTPL. For all other equity instruments,
the Company may make an irrevocable
election to present in other comprehensive
income subsequent changes in the fair
value. The Company has made such election
on an instrument by instrument basis. The
classification is made on initial recognition
and is irrevocable. If the Company decides
to classify an equity instrument as at FVTOCI,
then all fair value changes on the instrument,
excluding dividends, are recognized in the OCI.
There is no recycling of the amounts from OCI
to Statement of Profit and Loss, even on sale
of investment. However, the Company may
transfer the cumulative gain or loss within
equity. Equity instruments included within the
FVTPL category are measured at fair value with
all changes recognized in the Statement of
Profit and Loss.

c. De-recognition:

A financial asset is primarily derecognized when:

i. The rights to receive cash flows from the asset
have expired, or

ii. The Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under a
'pass-through' arrangement; and either

[a] the Company has transferred substantially all the

risks and rewards of the asset, or

[b] the Company has neither transferred nor retained

substantially all the risks and rewards of the asset,
but has transferred control of the asset.

On de-recognition of a financial asset in its entirely,
the difference between the assets carrying amount
and the sum of consideration received or receivable
and the cumulative gain or loss that had been
recognized in other comprehensive income and
accumulated in equity is recognized in the statement
of profit and loss if such gain or loss would have
otherwise been recognized in statement of profit
and loss on disposal of that financial assets.

d. Impairment of financial assets:

The Company applies the expected credit loss (ECL)
model for recognition of impairment loss on financial
assets and credit risk exposure:

i. Financial assets that are debt instruments, and are
measured at amortised cost e.g., loans, deposits,
trade receivables and bank balances;

ii. Trade receivables or any contractual right to
receive cash or another financial asset that result
from transactions that are within the scope of
Ind AS 115.

B. Financial liabilities:a. Initial recognition and measurement:

The Company's financial liabilities include trade and
other payables, loans and borrowings including
bank overdrafts, financial guarantee contracts and
derivative financial instruments.

All financial liabilities are recognised initially at
fair value and, in the case of loans and borrowings
and payables, net of directly attributable
transaction costs.

b. Subsequent measurement:

The measurement of financial liabilities depends on
their classification, as described below:

i. Financial liabilities at fair value through
profit or loss:

Financial liabilities at fair value through profit
or loss include financial liabilities held for
trading and financial liabilities designated
upon initial recognition as at fair value through
profit or loss. This category also includes
derivative financial instruments entered into
by the Company that are not designated as
hedging instruments in hedge relationships as

B. Commodity Contracts:

Initial recognition and
subsequent measurement

The Company enters into derivative
instruments such as commodity
future contracts to manage its
exposure to risk associated with
commodity prices fluctuations,
which are accounted for as
derivative at fair value through
profit and loss.

The Company also enters into
purchase and sales contracts
for edible and non-edible
oils commodities which are
accounted for as derivative at
fair value through profit and loss
if these contracts can be settled
net in cash or another financial
instrument, or by exchanging
financial instruments. However,
the contracts that are entered into
and continue to be held for the
purpose of the receipt or delivery
of the underlying commodity, in
accordance with the Company's
expected purchase, sale or usage
requirements, are treated normal
purchase/ sale contract ('own use
contracts'). The Company does not
recognize contracts entered into for
own use in the financial statements,
until physical deliveries take place
or contracts become onerous.

3.10 Fair Value Measurement

The Company measures financial
instruments at fair value at each balance
sheet date. 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. The fair
value measurement is based on the
presumption that the transaction to sell
the asset or transfer the liability takes
place either:

(i) In the principal market for the asset
or liability, or

(ii) In the absence of a principal market,

in the most advantageous market
for the asset or liability

The principal or the most advantageous
market must be accessible by the
Company. The Company uses valuation
techniques that are appropriate in the
circumstances and for which sufficient
data are available to measure fair
value, maximizing the use of relevant
observable inputs and minimizing the
use of unobservable inputs.

All assets and liabilities for which fair
value is measured or disclosed in the
financial statements are categorized
within the fair value hierarchy, described
as follows, based on the lowest level
input that is significant to the fair value
measurement as a whole:

(i) Level 1 — Quoted [unadjusted]
market prices in active markets for
identical assets or liabilities.

(ii) Level 2 — Valuation techniques
for which the lowest level input
that is significant to the fair
value measurement is directly or
indirectly observable.

(iii) Level 3 — Valuation techniques
for which the lowest level input
that is significant to the fair value
measurement is unobservable.

3.11 Inventories

Inventories comprises of raw material,
finished goods (including by-products),
packing material, consumables, stores
and spares and scrap. Inventories
are valued at the lower of cost or net
realizable value. The cost is determined
by weighted average method. The net
realizable value is the estimated selling
price in the ordinary course of business
less the estimated costs of completion
and estimated costs necessary to make
the sale.

Purchases of goods, to the extent
funded through the Company's banking

facilities of trade finance arrangements,
are recognized in the books of account
under inventories. The Company
assumes the associated risks and rewards
of ownership corresponding to the value
of the contracts paid. Accordingly, such
amounts are recorded as purchases and
simultaneously recognized as part of
inventories in the financial statements.

3.12 Employee benefits

Employee benefit costs for the year are
determined on the following basis:

(i) Company provides for Employee
Benefits in the form of Gratuity.
Such Benefits are provided for as at
Balance Sheet date, based on the
valuation made by independent
actuaries. Company has taken
Group Gratuity Policy of LIC of India
and Premium paid is recognized
as expenses when it is incurred.
Actuarial gains or loss in respect of
Gratuity are charged to OCI based
on the actuary valuation report.

Re-measurements, comprising
of actuarial gains and losses, the
effect of the asset ceiling (excluding
amounts included in net interest on
the net defined benefit liability) and
the return on plan assets (excluding
amounts included in net interest
on the net defined benefit liability),
are recognized immediately in the
balance sheet with a corresponding
debit or credit to retained earnings
through other comprehensive
income in the period in which they
occur. Re-measurements are not
classified to the statement of profit
and loss in subsequent periods.

Net interest is calculated by
applying the discount rate to the
net defined benefit liability or asset.

(ii) Provident fund is accrued on
monthly basis in accordance with
the terms of contract with the
employees and is deposited with
the Statutory Provident Fund. The

Company's contribution is charged to profit and loss
account.

(iii) Company also provides for Leave Encashment as at
Balance Sheet date, based on the valuation made by
independent actuaries.

Re-measurements, comprising of actuarial gains and losses, the
effect of the asset ceiling, excluding amounts included in net
interest on the net defined benefit liability and the return on
plan assets (excluding amounts included in net interest on the
net defined benefit liability), are recognized immediately in the
balance sheet with a corresponding debit or credit to retained
earnings through other comprehensive income in the period
in which they occur. Re-measurements are not classified to the
statement of profit and loss in subsequent periods.

Net interest is calculated by applying the discount rate to the
net defined benefit liability or asset

3.13 Taxes on Income

Tax expense comprises current and deferred tax. Current
income tax is measured at the amount expected to be paid
to the tax authorities in accordance with the Income Tax Act,
1961 and tax laws prevailing in the respective tax jurisdictions
where the Company operates. Current tax items are recognized
in correlation to the underlying transaction either in P&L, OCI or
directly in equity.

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

Deferred tax is provided using the liability method on temporary
differences between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes at the
reporting date.

Deferred tax liabilities are recognized for all taxable temporary
differences. Deferred tax assets are recognized for all deductible
temporary differences, the carry forward of unused tax credits
and any unused tax losses. Deferred tax assets are recognized
on the basis of reasonable certainty that the company will be
having sufficient future taxable profits and based on the same
the DTA has been recognized in the books.

The carrying amount of deferred tax assets is reviewed at each
reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow
all or part of the deferred tax asset to be utilized. Unrecognized
deferred tax assets are re-assessed at each reporting date and
are recognized to the extent that it has become probable that
future taxable profits will allow the deferred tax asset to be

recovered.

Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset is
realized, or the liability is settled, based on tax rates [and tax
laws] that have been enacted or substantively enacted at the
reporting date.

Deferred tax items are recognized in correlation to the
underlying transaction either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a
legally enforceable right exists to set off current tax assets
against current tax liabilities.

3.14 Borrowing costs

Borrowing cost includes interest, amortization of ancillary costs
incurred in connection with the arrangement of borrowings
and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment
to the interest cost.

Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or
sale are capitalized as part of the cost of the respective asset. All
other borrowing costs are expensed in the period they occur.

Borrowing costs that are not specifically attributable to the
acquisition, construction or production of a qualifying asset
shall be capitalized based on the application of a weighted
average capitalization rate, which determines the amount
of borrowing costs eligible for capitalization. The weighted
average rate is taken of the borrowing costs applicable to the
outstanding borrowings of the company during the period,
other than borrowings made specifically for the purpose of
obtaining a qualifying asset. The amount of borrowing costs
capitalized cannot exceed the amount of borrowing costs
incurred during that period.

3.15 Earnings per equity share

Basic earnings per share is calculated by dividing the net
profit or loss from continuing operation attributable to equity
shareholders of the Company by the weighted average number
of equity shares outstanding during the period. For the purpose
of calculating diluted earnings per share, the net profit or loss
for the period attributable to equity shareholders and weighted
average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.