1 Corporate Information
HCP Pl3stene Bulkpack Limited (the'Company') is a public listed comD3ny domiciled in India Its Equity Shares 3re listed on Bombay
Stock Exchange (‘BSE’). The Company is 3 diversified business dealing in FIBC Jumbo Bags. PP Woven Sack 3ags, PP Woven Laoels and
related products
2 Summay of Basis of Compaliance, basis of preparation and presentation, critical accounting estimates, assumptions and
judgements and Material accounting policies:
2.1 Basis of Compliance :
The Standalone financial statements comly in all material aspects, with Indian Accounting Standards (Ind AS) notified under section 133 of
Companies Act 2013 ('the Act') read witn the Companies (Indian Accounting Standards) Rule, 20IS.
2.2 Basis for Preparation of Accounts:
The Stand - aione Financial Statements nave near, prepared on the historical cost b3sisexceot for certain financial instrumentsand defined
benefit plans which are measured at fair values at the end of each resorting period, as explained in the accounting policies below which are
consistently followed except where a new accounting standard or amendment to the existing accounting standards requires a change in tne
policy hitherto applied. Presentacon requirements of Division II of Schedule III to the Companies Act. 2013, as applicable to the Standalone
Financial Statements h3v= been followed
All assets and liabilities have been dasified as current or non-current 3S per the Company's normal operating cycle and other criteria set out
in the Schedule II to the Act
2.3 Summary of Material Accounting Policies:
Tne following are the significant accounting policies applied by the Company in preparing its financial statements consistently to si! the
periods presented,
i Going concern assumption
The company has achieved 3 turnover of Rs 11,803.53 Laths dunng the fiscal year 2021-2025 (from April 1, 2021. to March 31. 2025), and
the financial statements have Peen prepared assuming that the company wiil continue its operations as a going concern
fi Current verses non-current classification
Tne Company presents assets and liabilities in the Balance 5heet based on current/non-current classification.
An asset is current when it is:
Expected to be realised or intends to be sold or consumed in tne normal -operating cyde,
• Help primarily for the purpose of trading;
Expected to be realised within twelve months after the reporting period; or
Cash and cash equivalent unless restricted from being exchanged or used to sett-e a liaoil'ity for at least twelve months
after the reporting period.
Ali -other assets are classified as non-current.
A liability is current when:
It is expected to oe settled in the normal operating cyde;
It is held primarily for the purpose of trading;
It is due to be settled within twelve months after the reporting period; or
There is no unconditional right to defer the settlement of tne liability for at least twelve months after the reoorting period.
Tne Company classifies all other liabilities as non-current.
However as CIRP process n3s been initiated all liabilities towards Banking Facilities have Deen
convened in to Current Demands and hance shown under Current Liabilities.
Operating cycle
Operating cycle of the Company is the time between the acquisition of assets f or processing 3nd their realization in cash or cash equivalents
As the Company"s normal operating cycle Is not dearly identifiable, it is assumed to ee tweVe months.
fii Use of estimates and judgements
The estimates and judgments used in the oreoaration of the financial statements 3re continuously evaluated by the Company and are based
on historical experience 3nd various other assumption and factors (including expectations of future events) that the Company believes to be
reasonable under the existing circumstances. Difference oetsveen actual results estimates are recognized in tne period in which the result is
known/matenalizeO
The said estimates are based on tne facts and events. tn3t existed as at reporting d3te. or that occurred after that date but provide additional
evidence about conditions existing as at the reporting date.
iv Financial instruments
A financial instrument is a contract that gives rise to a financial 3sset of one entity end a financial liability or equity instrument of anotne-
entity
A Financial asset
(i) Classification and measurementClassification
Classification
The Company classifies its financial assets, other than Investments in subsidiaries and joint venture in the following measurement categories,
a. those to be measured subsequently at fair valuefeither through other comprehensive income, or through profit or loss), and
b those measured at amortised cost
The classification depends on the Company's business model for managing the financial assets 3nd tne contractual terms of the cash flows.
For assets measured 3t fairvalue, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments
in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will
depend or whether the Company has made an irrevocable election 3t tne time of initial recognition to account for the equity investment 3t
fair value through other comprehensive income.
The Company reclassifies debt investments when and only when its business model for managing tnose assets cnangas.
Measurement
At initial recognition all financial assets are measured initially at fair value plus. In the C3=e of financial assets not recorded at f3ir value
through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets
carried at fair value through profit or loss are expensed in profit or loss. Purchase or saies of financial assets that require delivery of assets
within a time frame established by regulation or convention in the market place | regular way trade | are recognised on trade date
Debit Instrument
Subsequent measurement of debt instruments depends on the Company's Business model for managing the asset and the cash fiow
characteristics of the asset. There is only one measurement category into which the Company classifies its debt instruments as follows:
Amortised cost. Assets that are held for collection of contractual cash flows whe*e those cash flows represent solely payments of principal
and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is
not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired interest income from tnese
financial assets is included in finance income using the effective interest rate method
Trade Receivable
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less
provision for impairment.
Cash and Cash equivalents
For the purpose of presentation in tne statement of C3sh flows cash and casn 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 3re readily convertible
to known amounts of cash and which are subject to an insignificant risk of changes in -value, and bank overdrafts which are repayable on
demand and form ar integral Dart of 3>n entity's -cash management system
Other bank overdrafts 3re shown within borrowings in current liaDilities in the balance sheet.
(ii) Impairment of financial assets
The Company assesses on 3 forward looking basis the expected credit losses associated with its assets carried at amortised cost The
impairment methodology applied depends on whether there has been a significant increase in credit risk. Note 38.2 details how the Company
determines whether there has been a significant increase in credit nsk. For trade receivables only, the Company applies the simplified
approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of
the receivaoies
(iii) Derecognition of financial assets
A financial asset (or, where applicable, a p3rt of a financial asset or part of 3 group of simitar financial assets) is primarily derecognised when-
• The rights to receive cash flows from the financial 3=ser have been transferred, or
• The Company retains the contractual rights to receive the cash flows of the fir-arvtial 3sset but assumes a contractual obligation to pay the
cashflows to one or more recipients.
When the Company has transferred an asset, <t evaluates whether it h3s transferred substantially aO risks and rewards of ownership of the
financial asset In such cases, the financial 3ssst is derecognised. When the Company has not transferred substantially ail the risks and
rewards of ownership of a financial asset, the financial asset :s not derecognised.
When the Company has neither transferred a financial asset nor retains substantially 3l! risks and rewards of ownership of the financial asset,
the financial 3=set is derecognised if the Company has not retained control of the financial asset. When the Company retains control of the
financial asset, the asset is continued to be recognised to the extent of continuing involvement of the asset.
(iv) Income recognition
Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that
exactly discounts est imated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial
asset. When calculating tne effective interest rate, the Company estimates tne expected cash flows by considering all the contractual terms
of the financial instrument (for example prepayment, extension, call and similar optionsjbut does not consider tne expected credit losses-
Dividends 3re recognised in profit or loss only when the right to receive payment is established, it is prooabie that the economic benefits
associated with the dividend wiil flow to the Company, and the amount of the dividend can be measured reliably
B Financial liabilities
(») Initial recognition and measurement:
Financial liabilities are classified. 3t initial recognition, as financial liabilities at fair value through statement of Profit and loss, loans 3nd
borrowing, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
Ali financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directiy attributable
transaction costs.
Tne company's financial liabilities include trade and other payables, loans and borrowings including cash credit facilities from banks and
derivative financial instruments.
(fi) Subseouent measurement:
The measurement of financial ItabHlOes depends on their classification, as described below:
Financial liabilities a: fair value through Statement of Profit ar.o loss.Financial HafcfllOes at fair value through profit and loss include financial
liabilities held for trading and financial liabilities designated upon Initial recognition at fair value through Profit and loss. Financial 'labilities
are classified as held for trading if they are incurred for the purpose of 'epurchasir.g in the near term TW= category also includes derivatives
financial instruments entered into by the company that are not designated as hedging instruments In hedge relationships as defined by
Ind AS 109.
Gains or losses on liabilities held for trading are recognized in the Statement of Profit and loss
Financial liabilities designated upon initial recognition at fair value through statement of profit and loss are designated as such at the initial
date cf recognition and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gams/losses attributable
to changes in own credit risks are recognized in OO. These gains/losses are not subsequently transferred to p&L However the company
may transfer tne cumulative gain or loss within equity- Affother changes in fairvstue of such liability are recognized in the statement of
profit 3nd loss.
loans and borrowings:
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method Gains
and losses are recognized in the statement of profit and loss when the liabilities are derecognised as well as through the EIR amortisation
process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that 3re an integral part of
the EIR The EIR amortisation is included as finance costs in the statement of profit and loss
This category generally applies to borrowings
Financial guarantee contracts:
Financial guarantee contracts issued by the company are those contracts that require a payment to be made to reimburse the holder for
a oss it incurs because the specified deotor fails to make a payment when due in accordance with the terms of a debt instrument
Financial guarantee contracts are recognized initially as a liability at f3ir value through statement of profit 3rd loss IFVTPl), adjusted for
transaction costs that a.-s directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of
the amount of loss allowance determined as per impairment requirements of ind AS 109 and the amount recognized less cumulative
amortisation.
(iiij Derecognition:
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial
liability Is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially
modified . such an exchange or modification is treated as the derecognition of the original liability and tne recognition of a new liability.
The difference in the respective carrying amounts is recognized in the statement of Profit and loss.
C Derivative financial instrument:
The Company uses derivative financial instruments, such as forward currency contracts, to hedge its foreign currency risics Such derivative
financial instrument is initially recognized at fair value through consolidated statement of Profit and loss (FVTPL) on the date on which 3
derivative contract is entered into and is subsequently re-measured at fair value. Derivatives 3re carried as financial assets when the fair
value is positive and as financial liabilities when the fair value is negative.
Any gains or losses arising from charges in the fair value of derivative financial instrument are classified in the consolidated statement
of Profit and loss and reported with foreign exchange gains/(loss) not within results from operating activities. Changes in fair value and
gains /(losses) on settlement of foreign currency derivative financial instruments relating to borrowings, which h3ve not been designed
as hedge are recorded as finance cost
0 Offsetting of financial instruments
Financial assets and financial iiaoiiities are offset and the net amount is reported in the balance sheet if there is a currently enforceable
legal right tG offset the recognized amounts and there s an intention to settle on a net basis, to relate the assets and settle the liabilities
simultaneously.
a Foreign Currency Transactions.
The Company's financial statements are presented in INR, which is also the Company's functional and presentation currency.
Transactions m Foreign currency are recorded at the rate of exchange in force at the time transactions are effected and exchange
difference, if any. on settlement of transaction is recognized in Profit & Loss Account Monetary transactionbalance other than FCDL as
on date of Balance Sheet have neen reported at exchange :3te on Balance 5heet d3te and difference charged to profit S oss account.
Forward contract premium paid on forward contracts are amortized to Profit & loss account over life of such contract.
b Fair value measurement
The Company measures financial instruments such 3S Investments at f3ir value 3t the end of each reporting period
Fair value is the price that would be received to sell an asset or paid to transfer a iiaoility m an orderly transaction between market
participants at the measurement date. Tne fair value measurement is based on the presumption that the transaction to sell the asset or
transfer the liability skes place either.
• In the principal maricet for the asset or liability Or
• In the absence of a principal market, in the most advantageousmarket for the asset or Iiaoility.
The princ.pal or the most advantageous maricet must be accessible by the Company.
Tne fair value of an asset or s liability is measured using theassumptions that market participants would use when pricing theasset or
liability, assuming that market participants act in theiraconomic best merest
A f3ir value measurement of a norv-finanti3l asset takes into account market participant's ability to generate economic benefits by using
the asset in its highest and best use or by selling it to another m3ncet participant that would use the 3sser in its highest and best use.
Tne Company uses valuation techniques that are appropriate >n the circumstances and for which sufficient data are available to
measurefa r value maximising the use of relevant observabieinputsandminimisingthe use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value
hierarchy, descnoed 3S follows, based on the lowest level input that issignificant to the fair value measurement 33 a whole:
• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly
observ3Dle
• Levei 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unopservaole
For assets and liabilities that are recognised in the financial statements on 3 recurring basis, the Company determines whether transfers
have occurred between levels in the hierarchy by 'eassessing categorisation (based on the lowest ievei input that issignificant to the fair
value measurement as a whole) 3t the end of each reporting period.
The Company's Management determines the policies and procedures for botn recurring fair value measurement, such 3= derivative
instruments and for non-recurring measurement, such, as asset held for saie.
Extemal valuers are involved for valuation of significant assets. such as properties. Involvement of external valuers is decided upon
annually by the management after discussion with and approval by the Company's Audit Committee. Selection criteria include market
knowledge, reputation, independence and whether professional standards are maintained. Management decrdes. after discussions with
the Company's external valuers, which valuation techniques and inputs to use for each C3se.
However, such fair value report is not available for all assets except equity investment as or 31st March. 2020, Hence impairment Loss
not booked for immovable properties
At each reporting date, management analyses the movements in the values of assets and liabilities which are required to be re-measured
or re-assessed 3= per the Company's accounting policies. For this analyse, The Management verifies the major inputs applied in tne latest
valuation by agreeing the information in the valuation camoutation to contracts and other relevant documents
The Management ;n conjunction with the Company's external valuers ,3=50 compares the change inthe fair value of each asset and
liability with relevant external sources to determine whether the change treasonable on yeariy basis.
For the purpose of f3ir value disclosures the Company h3S determined classes of assets 3od liabilities on the basis of the nature,
characteristics and risks of the asset or liability and the level of the fair value hierarchy, as explal ned above This note summarises
accounting oolicy for fair value. Other fair value related disclosures are given in the relevant notes.
• Significant accounting judgements, estimates and assumptions
• Quantitative disclosures of fair value measurement hierarchy
• Property, plant and equipment St Intangible assets measured atfairv3lue 00 the date of transition
• Investment properties
• Financial instruments (includingthose carried at amortised cost)
Property, plant and equipment
Property, plant and equipment are stated at cost, less accumulated deprecation and impairment, if any. Costs directly attributable to
acquisition are capitalized until the property. plant and equipment are ready for use. 3s intended by the Management. The charge in
respect of periodic depreciation is derived at after determining 3n estimate of an asset’s expected useful life and the expected residua'
value at the end of its iife.
The Company depreciates property, plant and equipment over their estimated useful lives using the straight-Une method.
Schedule II to tne Act prescribes the useful lives for various class of assets For certain class of assets, Dased on technical evaluation 3nd
assessment. Management believes that the useful lives adopted by it reflect the periods over which these assets are expected to as used
Accordingly for those assets, the useful lives estimated oy the management are different from those prescribed In the Schedule.
Management's estimates of the useful iives for various class of PPE are as given below:_
Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no future economic oenefits are expected from its use
or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the
carrying amount of the asset; is included in the Statement of Profit and Loss when the asset is derecognised. However 3S stated aoove
No impairment ioss is oooked on 3ist March, 2024.
Depreciation
Depreciation on property, plant and equipment is provided so as to write off the cost of assets less residua! values over tneirussfu lives
•of the assets, using the straight line method as prescribed under PartC of Schedule ll to the Companies Act 2013.
When parts of an item of property, plant and equipment have different useful life, they are accounted for as separate items (Major
Components) and are depreciated over tneir useful life or over the remaining useful life of the principal assets whichever is less.
Depreciation for assets purcnased/sold during a period isproponjonateiy charged for the period of use. irrespective of actual operation
and uses of the assets n question.
d Intangible Assets
Intangible assets acquired separately are measured or initial recognition at cost. Following initial recognition, intangible assets are
carried at cost less accumulated amortization and accumulated impairment losses, if any.
The useful lives of intangible assets are assessed as either finite oondefimte.
Intangfble assets with finite lives are amortized over their useful economic lives and assessed for impairment whenever there is an
indication that the intangiple asset may be impaired. The amortization period 3nd the amortization method for an intangible 3sset with
a finite useful life are reviewed at least at the end of each reoorting period Changes In the expected useful life or the expectedoartem
of consumption of future economic benefits embodied inthe assets are considered tG modify the amortization period or method, as
appropriate and 3re treated as changes in accounting animates The amortization expense on intangible assets with finite nves is
recognised in the Statement of Profit and _oss intangible assets with indefinite useful lives are not amortized, but are tested fc-r
impairment annually, either individually or at the cash generating unit level. The assessment of indefinite fife is reviewed annually to
determine whether the indefinite fife continues to be supportable, rf not. the change in useful life from indefinite to finite is made on
a prospective basis.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and
the carrying amount of tne asset and are recognised in tne Statementof Profit and Loss when the asset is derecognised
Amortisation
Software is amortized over management estimate of its useful life of 3 years.
Impairment of non-frnanciai assets
The Company assesses at each reporting date whether there is an indication that an asset may ba Impaired, if any indication exists,
the Company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash generating
unit's (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the 3sset does not
generate C3sh Inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an
asset or CGU exceeds its recoverable amount, the asset is considered impaired and is to its recc-verabfe amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
refects current market assessments of the time value of money and the risks specific to the asset. In determining net selling price,
recent market transactions are taken into account if available It no such transactions car be identified. an appropriate valuation
model is used.
e Inventories
Inventories of Raw material, Work-in - progress , finished goods and Stock-in-trade are valued at the lower of cost and net realizable
value However Raw materia-' 3nd other items held for use in the production of inventories are not written down below cost if the
finished products in which they will be incorporated are expected to be sold at oraoove cost
Costs incurred in bringing each product to its present location andconditions are accounted for as follows:
•Raw materials, cost includes cost of purchase and other costs incurred in bnnging the inventories to their present location and
condition Cost is determined on first in. first out basis.
• Finished goods and work in progress: cost includes cost of direct materials 3nd Labours and a proportion of manufacturing overheads
based or the normal operating capacity, but exctuding borrowing costs. Cost is determined on first in, first out basis
• Traded goods: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition.
Cost is determined on weighted average basis.
All other inventories of stores, consumables. projecT material at site are values at cost or NRV whichever is (ow Tne stock of waste is
valued at net realisable value
Net realisable value is the estimated selling price in tha ordinary course of ousiness, less estimated costs of completion and the estimated
costs necessary to make the sale.
/ Revenue Recognition
f (a) Sale of Goods
* Revenue is racogn sed upon transfer of control of promised goods to customers in an amount that reflects the consideration which the
Company expects to receive in exchange for those goods.
* Revenue from the sale of goods is recognised at the point in time when control is transferred to the customer which is usually on
dispatch / delivery of goods based on contracts with the customers.
• Revenue towards satisfaction of performance obligation is measured basad or. the transaction price which is the consideration
adjusted for volume discounts, price concessions, incentives, and returns, if any, as specified in the contracts with the customers
* Revenue excludes taxes collected from customers on nehaif of the government Accruals for discounts/incentives and returns are
estimated (using the most likely method) cased on accumulated expenenceand underlying schemes and agreements withcustcmers.
Due to the short nature of creditperiod given to customers, there is no finandngcomponent in the contract.
The Company does not expect to have any contracts where the period between tne transfer of the promised goods or services to the
customer and payment by the customer exceeds one ye3r As a consequence, it does not adjust any of the transaction prices for the
time value of money
Revenue from tne sale of goods is measured at the fair value of the consideration received or -eceivable including net of returns and
allowances, tradediscou.nts, volume rebates and GST.
f (b) Interest income
Interest is recognized on a time proportion oasis taking into account the amount outstanding 3nd the appitcab’e interest rate
f (c) Dividend
Dividend Income is recognised when the Company"s right to receive established which is generally occur when the shareholders aporove
the dividend.
g Taxes on Income
Tax expense comprises of current income tax and deferred tax.
Current income tax
Current income tax assets and liabilities are measured at Pie amount expected to be recovered from or paid to the taxation authorities.
The tax rates and tax laws used to compute the amount are those tti3t are enacted or substantively enacted, at the reporting date.
Current •rvcometax relating to items recognised outside the statement of Profit and Loss is recognised outside the statement of Profit
and Loss (either in other comprehensive income or in equity). Deferred tax items 3re recognised in correlation to the underlying
transaction either in 0C- or directly in equity.
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are
subject to interpretation and establishes provision where appropriate.
Deffered IncomeTax
Deferred income tax is provided using the liability method on temporary differences arising between the tax oases of assets and liabilities
and their carrying amounts for financial reporting purpose at the reporting date
Deferred tax liabilities are recognized for ail taxable temporary differences, except
-When the Deferred tax liability arises from tne initial recognition of goodwill or 3n 3sset or liability in a transaction other than a
business combination th3t at the time of the transaction affects neither accounting profit nor taxable profit or loss.
- In respect of taxaole temporary differences associated with investments in subsidiaries, when tne timing of tne reversal of the
temporary differences can be controlled and it is proP3ble that the differences will not reverse in the foreseeable future
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 to the extent it is probable that future taxable amounts will be available against the deductible
temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised except:
- When the Deferred TAX ASSET arises relating to the deductible temporary difference arises from tne initial recognition of an ASSET or
LIABILITIES in a transaction other than a business combination that 3t tna time of the transaction affects neither accounting PRO?IT nor
TAXABLE PROFIT or LOSS.
- in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint
arrangements deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the
foreseeable future 3nd taxable profit will be available against which the temporary differences can be utilised
The carrying amount of deferred tax assets is reviewed at each reporting d3te and reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow 3ll or pan of the deferred t3X assets is to be utilised Unrecognized deferred tax
assets are re-assessed 3t each reporting date and are recognised to the extent that ithas oecome prcbaoie 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 realised 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 relating to items recognised outside the statement of Profit and Loss is recognised outside the statement df Profit and Loss.
Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity
Deferred tax assets and deferred tax liabilities 3re offset if a legally enforceable right exists to set off current tax assets against current
t3x liabilities and the deferred taxes relate to the same taxaole entity and the same taxation authority
h Employee benefits
Short-term obligations
Labilities for wages and salaries, including non-mor.etary benefits that are expected to be settled wholly within 12months 3fter the end
of the period in which the employees render the related service are recognized in respect of employees services up to the end of the
reporting period and are measured at the amounts expected to be P3id when the liabilities are settled The liabilities 3re presented as
current employee oeneft obligations in the balance sheet
Other long-term employee benefit obligations
The liabilities for earned leave and sick leave 3re not expected to oe settled wholly within 12 months 3fter the end of the period in which
the employees render the related service. They are therefore measured 3S the present value of expected future payments to be made in
respect of services provided by employees up to the end of the reporting period on government bonds using the projected unit credit
method The oenefits are discounted using the market yields 3t the end of the repaying period that have terms approximating to the
terms of the related obligation Remeasurements as a result of experience adjustments 3nd changes n actuarial assumptions are
recognised in profit or loss.
The obligations ere presented as current liabilities in the balance sheet if the Company does not have an unconditional right to defer
settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
Post-employment obligations
The Company operates the following post-employment schemes
a) defined Benefit plans such as gratuity 3nd
b) defined contribution plans such as provident fund
Defined benefit plan
The liability or asset recognised in tne oaiar-ce sheet in respect of defined Benefit gratuity pians is tne present value of the defined benefit
obligation at the end of the reporting period less the f3ir value of pian assets The defined Denefir obligation is calculated annually by
actuaries using the projected unit credit method
The present value of the defined benefit obligation b determined by discounting the estimated future cashout flows by reference to
market yields at the end of the reporting period on government bonds th3t have terms approximating to the terms of the related
obligation. The net interest cost is calculated by applying the discount r3te to the net balance of the defined benefit obligation and the
fair value of pl3n assets. This cost is included in employee benefit expanse in the statement of profit and loss
Remeasurement gains and losses arising from experience adjustments 3nd changes in actuarial assumpoonsare recognised in the period
in which they occur directly in other comprehensive income .They are included in retained earnings in the statement of changes in
equity and in the balance sheet.
Changes in the present value of the defined benefit oolig3t>on resulting from olan amendments or curtailments are recognised
immediately in profit or loss as past service cost
Defined contribution plans
The Company pays provident fund contributions to publicly administered provident funds 3S per local regulations. The Company has no
further payment obligations once the contributions nave been paid The contributions are accounted for as defined contribution plans
and the contributions are recognised as employee benefit expense when they are due Preoaid contributions are recognised as an asset
to the extent that a cash refund or a reduction in the future payments is available.
i Export incentives
Export incentives under various schemes notified by government are accounted for, in the year of exports based on eligibility and
whenthere is no uncertainty in receiving the same
/ Investment and other Finoncfol Assets
Financial assets are recognized and measured in accordance with Ind AS 109- Financial Instruments. Accordingly, the company recognizes
financial asset only when it has contractual right to receive cash or other financial assets from another Company.
a. Initial recognition and measurement
All financial assets, except investment in subsidiary are measured initially at fair value plus, transaction costs that are attributable to the
acquisition of tne financial asset. Tne transaction cost incurred for the purchase of financial assets held at fair value through profit or
loss is expended in the statement of Profit and Loss immediately
b. Subsequent measurement
For tne purpose of Subsequent measurement finar.03! 3ssets are classified in three categories:
- Measured 3t amortised cost
- Measured 3t fair value through other comprehensive income (FVOG)
- Measured at fair value through Profit and Loss (FVTPL)
k Debt instruments at omortised cost
Assets that are held for collection of contractual C3=h flows where those cash flows represent solely payments of principal and interest
are measured at amortised cost. Financial assets are accounted for 3t amortized cost using the effective interest method. This category
comprises trade accounts receivable. So3r.s. cash 3rd cash equivalents. ban*. balances and other financial assets. A gain or loss on 3 debt
instrument that is subsequently measured at amortized cost and is not part of a hedging relationship that is recognized in the Statement
of Profit and Loss when the asset is derecognized or impaired. Interest income from these financial assets is included in finance income
using the effective interest rate method
Debt instruments 3t fair value through other comprehensive income (FVOCI)
Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets' cash flows represent
solely payments of principal and interest, are measured at fair value through Other Comprehensive Income (FVOCJ).
The movement in carrying amount are taken througn Other Comprenensive Income, except for tne recognition of impairment gains or
losses, interest revenue and foreign exchange gains and losses -which are recognized n the Statement of Profit and Loss. When the
financial 3sset is derecognized , the cumulative gain or loss previously recognized in Other Comprehensive Income is reclassified from
equity to tne Statement of Profit and Loss and recognized in other gains/ (losses), interest income from these financial assets is included
in finance income using the effective interest rate method.
Debt instruments at fair value through Profit and Loss (FVTPl)
FVTPL is a residua; category for deot instruments Any debt instrument, which does not meet the criteria for categorisation at amorriied
cost or FVTOCI. is classified as at FVTPL Debt instruments included witnin me FVTPL category 3r= measured at fair value with 3II
-changes recognised in the Statement of Profit and Loss.
I Equity Investments;
Aii equity investments except in subsidiary are measured at cost in scope of Ind AS 103 are measured at fair value. For ail other equity
instruments, the company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair
value The company makes such election on3n instrument-by-mstrument basis The classification is rr-3de on initial recognition and is
irrevocable.
if the company decides to classify an equity instruments as a FVTOO, then all fair value changes on the instrument, excluding dividends,
are recognized in other comprehensive income (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 less within equity
Equity instruments included within the FVTPL category are measured at fair value with ail changes recognised in the Statement of Profit
and Loss.
Derecognition
A financial asset (or, where applicable, a part of financial asset or part of a group of similar financial assets) is primarily derecognised
(i e. removed from the company's Balance sheet) when:
- The rights to receive Cash flows from the ASSET have expired, or
-The company has transferred substantially all the risks and rewards of the asset
Investments in shares are stated at market value as on date of Balance Sheet 3nd M to M gain / Joss is shown in profit and loss account.
m Borrowing cost
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period
of time to get -e3dy for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs
areexpensed in the period in which they occur. Borrowing costs consistof interest and other costs that the Company incurs in connection
with tne borrowing of funds Borrowing -cost 3iso includes exchange differences to the extent regarded as 3n adjustment to the
borrowing costs.
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