Note: 2 Significant Accounting Policies

This note provides a list of the significant accounting policies adopted in the preparation and presentation
of these financial statements. These policies have been consistently applied to all the years presented,
unless otherwise stated.

a) Statement of compliance

These standalone financial statements have been prepared in accordance with the Indian
Accounting Standards (referred to as "Ind AS") as prescribed under section 133 of the Companies
Act, 2013 read with the Companies (Indian Accounting Standards) Rules and the guidelines issued
by the Securities and Exchange Board of India ("SEBI'') as amended from time to time.

b) Basis of preparation

i) These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS),
under the historical cost convention on the accrual basis except for certain financial instruments
which are measured at fair values, the provisions of the Companies Act, 2013 ("the Act") (to the
extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind
AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting
Standards) Rules, 2015 and relevant amendment rules issued thereafter. 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 the accounting policy thereto in use.

ii) Historical cost convention:- The financial statements have been prepared on a historical cost basis,
except for the following:

• Certain financial assets and liabilities that are measured at fair value (duly reported if any);

• Defined benefit plans - plan assets measured at fair value;

iii) All amounts included in the financial statements are reported in Lakhs of Indian rupees (' in 00000)
except share and per share data, unless otherwise stated. Due to rounding off, the numbers
presented throughout the document may not add up precisely to the totals and percentages may
not precisely reflect the absolute figures. Previous year figures have been regrouped/ re-arranged,
wherever necessary.

c) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision maker. The Company has identified Managing Director and Chief Financial
Officer as chief operating decision maker. Refer Note 37 for segment information presented.

d) Foreign currency transactions

i) Functional and presentation currency: Items included in the financial statements are measured
using the currency of the primary economic environment in which the entity operates (the
functional currency). The financial statements are presented in Indian National Rupee ('), which is
the Company's functional and presentation currency.

ii) Transactions and balances: Foreign currency transactions are translated into the functional
currency using the exchange rates at the dates of the transactions. Exchange differences arising
from foreign currency fluctuations are dealt with on the date of payment/receipt. Assets and
Liabilities related to foreign currency transactions remaining unsettled at the end of the period/year
are translated at the year end rate wherever necessary. The exchange difference is credited/
charged to Profit & Loss Account in case of revenue items and transfered to assets in case of capital
items.

e) Revenue Recognition

The Company recognizes revenue in accordance with Ind- AS 115. Revenue is recognized upon
transfer of control of promised goods to customers i.e., when the performance obligation gets
fulfilled in an amount that reflects the consideration which the company expects to receive in
exchange for that particular performance obligation. Revenue is measured based on the transaction
price, which is the net of variable consideration, adjusted for discounts, price concessions, and
incentives, if any, as specified in the contract with the customer. Revenue also excludes taxes
collected from customers.

i) (a) Sale of Goods

Revenue from sale of products is recognized when the control on the goods have been
transferred to the customer. The performance obligation in case of product is satisfied at a
point in time i.e., when the material is shipped / delivered to the customer or when it is
delivered to a carrier for export sale, as may be specified in the contract. Revenue is measured
at fair value of the consideration received or receivable. The Company recognizes revenue
from sale of products net of discounts, sales incentives, rebates granted, returns, GST, VAT,
sales tax and duties when the products are delivered to customer or when delivered to a
carrier for export sale, which is when significant risks and rewards of ownership pass to the
customer.

Export benefits available are accounted for in the year of export, to the extent the realisation
of the same is not considered uncertain by the Company.

(b) Supply of Services

Revenue from the services are recorded as and when the service is provided to the customers
or as the work has been completed in accordance with the contract made with the customer.

ii) Other Revenue(a) Customs Duty

Customs Duty/incentive entitlement as and when eligible is accounted on an accrual basis.
Accordingly, import duty benefits against exports affected during the year are accounted on
estimate basis as incentive till the end of the year in respect of duty-free imports of raw
material yet to be made.

(b) Interest Income

Interest income is accrued on a time basis by reference to the principal outstanding and the
effective interest rate.

(c) Other Income/Miscellaneous Income

Other items of income are accounted as and when the right to receive such income arises and
it is probable that the economic benefits will flow to the company and the amount of income
can be measured reliably.

f) Taxes

Income tax expenses comprise current tax expense and net changes in the deferred tax asset or
Liability during the year. Current & deferred taxes are recognized in the statement of Profit & Loss,
except when they relate to items that are recognized in other comprehensive income or directly in
equity, in which case, the current & deferred tax are also recognized in other comprehensive income
or directly in equity, respectively.

i) Current income tax

Current Income Tax for the current and prior periods are measured at the amount expected to be
paid to the tax authorities, using the applicable tax rates. The tax rates and tax laws used to compute
the current tax amounts are those that are enacted or substantively enacted as at the reporting date
and applicable for the period. While determining the tax provisions, the Company assesses whether
each uncertain tax position is to be considered separately or together with one or more uncertain
tax positions depending the nature and circumstances of each uncertain tax position.

The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable
right to set off the recognized amounts and where it intends either to settle on a net basis, or to
realize the asset and liability simultaneously.

Income tax expense is the aggregate amount of Current tax. Current tax is the amount of income tax
determined to be payable in respect of taxable income for an accounting period or computed on the
basis of the provisions of Section 115BAA of Income Tax Act, 1961 by way of minimum alternate tax
at the prescribed percentage on the adjusted book profits of a year, when Income Tax Liability under
the normal method of tax payable basis works out either a lower amount or nil amount compared to
the tax liability u/s 115JA.

ii) Deferred Tax

Deferred tax is recognized, using the liability method, on temporary differences arising between the
tax bases of assets and liabilities and their carrying values in the financial statements. However,
deferred taxes are not recognized if they arise from initial recognition of an asset or liability in a
transaction other than a business combination that at the time of the transaction affects neither
accounting nor taxable profit or loss.

Deferred Tax Liability is generally recognised for all taxable temporary differences. In contrast,
Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will
be available against which the temporary differences can be utilized. However, if these are
unabsorbed depreciation, carry forward losses and items relating to capital losses, deferred tax
assets are recognized when there is reasonable certainty that there will be sufficient future taxable
income available to realize the assets. Deferred tax assets in respect of unutilized tax credits which
mainly relate to minimum alternate tax are recognised to the extent it is probable that such
unutilized tax credits will get realized.

The unrecognized deferred tax assets/ carrying amount of deferred tax assets are reviewed at each
reporting date for recoverability and adjusted appropriately.

Deferred tax is determined using tax rates (and laws) that have been enacted or substantively
enacted by the reporting date and are expected to apply when the related deferred income tax asset
is realized or the deferred income tax liability is settled.

Income tax assets and liabilities are off-set against each other and the resultant net amount is
presented in the balance sheet, if and only when, (a) the Company currently has a right to set-off the
current income tax assets and liabilities, and (b) when it relate to income tax levied by the same
taxation authority and where there is an intention to settle the current income tax balances on net
basis. (Ref. Note No. 13 and 29)

iii) MAT Credit

MAT Credit is recognised as an asset only when and to the extent there is convincing evidence that
the company will pay normal Income Tax during the specified period. In the year in which the MAT
Credit becomes eligible to be recognised as an asset in accordance with the recommendation
contained in Guidance Notes issued by the ICAI, the said asset is created by way of a credit to the
statement of profit & loss and shown as MAT Credit entitlement. The Company reviews the same at
each Balance Sheet date and writes down the carrying amount of MAT Credit entitlement to the
extent there is no longer convincing evidence to the effect that company will pay normal Income Tax
during the specified period.

g) Impairment of assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An
impairment loss is charged to the profit and loss account in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting period is reversed if there has been a
change in the estimate of recoverable amount.

h) Inventories

The general practice adopted by the company for valuation of inventory is as under:

i) Raw Materials - *At lower of cost and net realizable value.

ii) Stores and spares - At cost

iii) Work-in-process/semi-finished goods - At material cost plus labour and other appropriate portions

of production and administrative overheads and depreciation

iv) Finished Goods/Traded Goods - At lower of cost and net realizable value.

v) Finished Goods at the end of trial run - At net realizable value.

vi) Scrap material - At net realizable value.

vii) Tools and equipment - At lower cost and disposable value.

*Material and other supplies held for use in the production of the inventories are not written down below
cost if the finished goods in which they will be incorporated are expected to be sold at or above cost.

Costs of inventories are determined on a FIFO Basis. Net realizable value represents the estimated selling
price for inventories less all estimated costs of completion and costs necessary to make the sale.

i) Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, 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.

j) Investments and other financial assetsi) Classification

The Company classifies its financial assets in the following measurement categories:

• Those to be measured subsequently at fair value (either through other comprehensive income,
or through profit or loss), and

• Those measured at amortized cost.

The classification depends on the entity's business model for managing the financial assets and the
contractual terms of the cash flows.

Investment Property:- Property that are held for long term rental yields or for Capital Appreciation
or both is classified as Investment Property. Investment Property is measured at its cost, including
related transaction cost and where applicable borrowing costs. Current investments are carried at
lower of cost or quoted/fair value. Provision for diminution in the value of long term investments is
made only if such a decline is other than temporary.

For assets measured at fair value, gains and losses will either be recorded in statement of profit &
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 on whether the Company has made an irrevocable election at the time of initial recognition
to account for equity investment at fair value through other comprehensive income. The Company
reclassifies debt investments when and only when its business model for managing those assets
changes.

ii) Measurement

At initial recognition, the company measures a financial asset at its fair value plus, in the case of a
financial asset not at fair value through profit or loss, transaction costs that are directly attributable
to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value
through profit or loss are expenses in profit or loss.

Amortized cost:

Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortised cost. However, where the impact of
discounting / transaction costs is significant, the amortised cost is measured using the effective
interest rate (EIR') method. Interest income from these financial assets is included in Other Income.

iii) Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on financial
assets measured at amortised cost, debt instruments at FVTOCI, lease receivables, trade
receivables, other contractual rights to receive cash or other financial assets, and financial
guarantees not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective risks of default
occurring as the weights. Credit loss is the difference between all contractual cash flows that are due
to the Company in accordance with the contract and all the cash flows that the Company expects to
receive (i.e. all cash shortfalls), discounted at the original effective interest rate (or credit-adjusted
effective interest rate for purchased or originated credit-impaired financial assets). The Company
estimates cash flows by considering all contractual terms of the financial instrument (for example,
prepayment, extension, call and similar options) through the expected life of that financial
instrument.

The Company measures the loss allowance for a financial instrument at an amount equal to the
lifetime expected credit losses if the credit risk on that financial instrument has increased
significantly since initial recognition. If the credit risk on a financial instrument has not increased
significantly since initial recognition, the Company measures the loss allowance for that financial
instrument at an amount equal to 12-month expected credit losses. 12-month expected credit
losses are portion of the life-time expected credit losses and represent the lifetime cash shortfalls
that will result if default occurs within the 12 months after the reporting date and thus, are not cash
shortfalls that are predicted over the next 12 months.

If the Company measured loss allowance for a financial instrument at lifetime expected credit loss
model in the previous year, but determines at the end of a reporting year that the credit risk has not
increased significantly since initial recognition due to improvement in credit quality as compared to
the previous year, the Company again measures the loss allowance based on 12-month expected
credit losses.

When making the assessment of whether there has been a significant increase in credit risk since
initial recognition, the Company uses the change in the risk of a default occurring over the expected
life of the financial instrument instead of the change in the amount of expected credit losses. To
make that assessment, the Company compares the risk of a default occurring on the financial
instrument as at the reporting date with the risk of a default occurring on the financial instrument as
at the date of initial recognition and considers reasonable and supportable information, that is
available without undue cost or effort, that is indicative of significant increases in credit risk since
initial recognition.

For 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, the Company always measures the loss
allowance at an amount equal to lifetime expected credit losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables,
the Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss
allowance is computed based on a provision matrix which takes into account historical credit loss
experience and adjusted for forward-looking information.

The impairment requirements for the recognition and measurement of a loss allowance are equally
applied to debt instruments at FVTOCI except that the loss allowance is recognised in other
comprehensive income and is not reduced from the carrying amount in the balance sheet. The
Company has performed sensitivity analysis on the assumptions used and based on current
indicators of future economic conditions, the Company expects to recover the carrying amount of
these assets.

iv) Derecognition of financial assets

Financial asset is derecognized only when:

• The Company has transferred the rights to receive cash flow from the financial asset
or

• Retains the contractual rights to receive the cash flows of the financial assets, but assumes a
contractual obligation to pay cash flows to one or more recipients.

Where the entity has transferred an asset, the Company evaluates whether it has transferred
substantially all risks and rewards of ownership of the financial asset. In such cases, the financial
asset is derecognized. Where the entity has not transferred substantially all risks and rewards of
ownership of the financial asset is not derecognized.

Where the entity has neither transferred a financial asset nor retains substantially all risks and
rewards of ownership of the financial asset, the financial asset is derecognized if the Company has
not retained control of the financial asset. Where the Company retains control of the financial asset,
the asset is continued to be recognized to the extent of continuing involvement in the financial asset.

k) Cost recognition

Costs and expenses are recognized when incurred and have been classified according to their
nature. The costs of the Company are broadly categorized in to material consumption, cost of
trading goods, employee benefit expenses, depreciation and amortization, other operating
expenses and finance cost. Employee benefit expenses include employee compensation, gratuity,
leave encashment, contribution to various funds and staff welfare expenses. Other expenses
broadly comprise manufacturing expenses, administrative expenses and selling and distribution
expenses.

Financial Assets
Initial Recognition

All financial assets are recognized initially at fair value. Transaction costs that are directly attributable to
the acquisition of financial assets (other than financial assets at fair value through profit or loss) are
added to the fair value measured on initial recognition of financial asset. However, trade receivables
that do not contain a significant financing component are measured at transaction price.

l) Property, plant and equipment

An item of PPE is recognized as an asset if 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. PPE are
initially measured at cost of acquisition/ construction including decommissioning or restoration cost
wherever required. The cost of land includes expenditures which are directly attributable to the
acquisition of the land like, rehabilitation expenses, resettlement cost and compensation in lieu of
employment incurred for displaced persons concerned etc.

Property, plant and equipment are carried at cost less accumulated depreciation and impairment
loss, if any in accordance with Ind-AS 16. The Company reviews the fair value with sufficient
frequency to ensure that the carrying amount does not differ materially from its fair value.

Cost excludes Input credit under GST and such other taxes which can utilize against GST liabilities and
other refundable taxes. Depreciation on assets is claimed on such 'reduced' cost. All items of repairs
and maintenance are recognized in the statement of profit and loss, except those that meet the
recognition principle as defined in Ind-AS 16. Any revaluation of an asset is recognized in other
comprehensive income and shown as revaluation reserves in other equity.

Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all its
property, plant and equipment recognized as at 1st April, 2016 measured as per the previous GAAP
and use that carrying value as the deemed cost of the property, plant and equipment.

Depreciation/Amortization methods estimated useful lives and residual value.

Depreciation is calculated using the straight-line basis at the rates arrived at based on the useful lives
prescribed in Schedule II of the Companies Act, 2013. The company follows the policy of charging
depreciation on a pro-rata basis on the assets acquired or disposed off during the year. Leasehold
assets are amortized over the period of lease.

The residual values are not more than 5% of the original cost of the asset. The assets' residual values
and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An
asset's carrying amount is written down immediately to its recoverable amount if the asset's
carrying amount is greater than its estimated recoverable amount. Gains or losses on disposal are
determined by comparing proceeds with carrying amount.

m) Intangible assetsi) Recognition

Intangible assets are recognized only when future economic benefits arising out of the assets flow to
the enterprise and are amortized over their useful life. Intangible assets purchased are measured at
cost or fair value as of the date of acquisition, as applicable, less accumulated amortization and
accumulated impairment, if any.

ii) Amortization methods and periods

The Company amortized intangible assets on a straight line method over their estimated useful life

not exceeding 10 years. Software are amortized over a period of years according to the life as
decided by the management of the company.

iii) Transition to Ind AS

On transition to Ind AS, the company has elected to continue with the carrying value of all of
intangible assets recognized as at 1st April, 2016 measured as per the previous GAAP and use that
carrying value as the deemed cost of intangible assets.

Financial Liabilities
Initial Recognition

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

Subsequent Recognition

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

Financial liabilities at fair value through profit or loss

Financial liabilities designated upon initial recognition at fair value through profit or loss are
designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied.
Changes in fair value of such liability are recognized in the statement of profit or loss

Financial liabilities at amortized cost

The Company's financial liabilities at amortized cost are initially recognized at net of transaction
costs and includes trade payables, borrowings including bank overdrafts and other payables.

After initial recognition, financial liabilities are subsequently measured at amortized cost using the
effective interest rate (EIR) method except for deferred consideration recognized in a business
combination which is subsequently measured at fair value through profit and loss. Gains and losses
are recognized in the statement of profit and loss when the liabilities are derecognized as well as
through the EIR amortization process. Amortized cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR
amortization is included as finance costs in the statement of profit and loss.

Derecognition

Financial liability is derecognized when the obligation under the liability is discharged or cancelled
or expires.

n) Trade and other payables

These amounts represent liabilities for goods and services provided to the company prior to the end
of the financial year which are unpaid. The amounts that are unsecured are presented as current
liabilities unless payment is not due within 12 months after the reporting period. They are
recognized initially at their fair value.

o) Borrowings

Borrowings are initially recognized at fair value, net of transaction cost incurred. Borrowings are
subsequently measured at amortized cost. Any difference between the proceeds (net of transaction
costs) and the redemption amount is recognized in profit or 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 the facility will be
drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no
evidence that it is probable that some or all the facility will be drawn down, there is capitalized as
prepayment for liquidity services and amortized over the period of the facility to which it relates.

Borrowings are removed from the balance sheet when the obligation specified in the contract is
discharged, cancelled or expired. The difference between the carrying amount of financial liability
that has been extinguished or transferred to another party and the consideration paid, including any
non-cash assets transferred or liabilities assumed, is recognized in statement of profit & loss.

Where the terms of a financial liability are renegotiated and the entity issues equity instruments to a
creditor to extinguish all or part of the liability (debt for equity swap), a gain or loss is recognized in
profit or loss, which is measured as the difference between the carrying amount of the financial
liability and the fair value of the equity instrument issued.

p) Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying asset as defined in Ind-AS 23 are capitalized during the period of time that
it is required to complete and prepare the asset for its intended use or sale. Qualifying assets are
assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing cost eligible for capitalization. Any
related foreign currency fluctuations on account of qualifying asset under construction is capitalized
and added to the cost of assets concerned. Other borrowing costs are expensed as incurred.

q) Employee benefits

i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled
wholly within 12 months after 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 paid when the liabilities are settled. The liabilities are
presented as current employee benefit obligations in the balance sheet.

ii) Other long-term employee benefit obligations

The liabilities for earned leave are not expected to be settled wholly within 12 months after the end
of the period in which the employees render the related service. They are therefore measured at 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 using the projected unit credit method. The benefits are
discounted using the market yields at the end of the reporting period that have terms approximating
to the terms of the related obligations.

Remeasurements as a result of the experience adjustments and changes in actuarial assumptions
are recognized in statement of profit & loss.

The obligations are presented as current liabilities in the balance sheet if the entity 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.

iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) Defined benefit plans such as gratuity; and(b) Defined contribution plans such as provident fund and superannuation funds.(c) Defined benefit plans such as Leave encashment.iv) Gratuity & Leave Encashment obligations

The liability or assets recognized in the balance sheet in respect of gratuity & Leave Encashment
plans is the present value of the defined benefit obligation at the end of the reporting period less the
fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the
projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated
future cash outflows by reference to market yields at the end of the reporting period on government
bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets. This cost is included in employee benefit
expenses in the statement of profit and loss.

Changes in the present value of the defined benefit obligation resulting from plan amendments or
curtailment are recognized immediately in statement of profit & loss.

v) Defined contribution plans

The company pays provident fund contributions to publicly administered funds as per local
regulations. The Company has no further payment obligations once the contributions have been
paid. The contributions are accounted for as defined contribution plans and the contributions are
recognized as employee benefit expenses when they are due.

vi) Bonus plans

The Company recognizes a liability and an expense for bonus. The Company recognizes a provision
where contractually obliged or where there is a past practice that has created a constructive
obligation.

r) Dividends

Provision is made for the amount of any dividend declared, being appropriately authorized and no
longer at the discretion of the entity, on or before the end of the reporting period but not distributed
at the end of the reporting period.

s) Earnings per share

i) Basic earnings per share: Basic earnings per share are calculated by dividing:

• The profit attributable to owners of the company.

• By the weighted average number of equity shares outstanding during the financial year.

ii) Diluted earnings per share: Diluted earnings per share adjust the figures used in the determination
of basic earnings per share to take into account:

• The after income tax effect of interest and other financing costs associated with dilutive
potential equity shares, and

• The weighted average number of additional equity shares that would have been outstanding
assuming the conversion of all dilutive potential equity shares.

t) Custom duty and its benefits

Custom Duty payable on imported raw materials, components and stores and spares is recognized to
the extent assessed by the customs department.

Custom duty entitlement eligible under passbook scheme / DEPB is accounted on an accrual basis.
Accordingly, import duty benefits against exports affected during the year are accounted on
estimate basis as incentive till the end of the year in respect of duty free imports of raw material yet
to be made.

u) The Treatment of expenditure during construction period

All expenditure and interest cost during the project construction period, are accumulated and
shown as Capital Work-in- Progress provided they meet the recognition criteria as per IND AS 16
until the project/ assets commences commercial production. Assets under construction are not
depreciated. Expenditure/Income arising out of trial run is part of pre-operative expenses included
in Capital Work-in-Progress.