fi Significant ACCOunilrVg POfrCiesel Firtaodal 5t jk'mtnH
The ^ignrfic-a nt account mg policies applied by (he Company in the pne^rtUni af hi financial statements arc
listed below. Such accounting policies have been applied consistently to all the periods presented In These
'in.mu.11 tltilLrncnli, unlltis othrrvi Ý-Ý indio.irt’d.
(i) StalemnU of (nrapllaim
The financial statement h*yc brrn prcj)Jr;.<J in amordanre with Indian AtCOu-nting »indl1ll Pnd AS"1
rili[Ý 111J. under Section 111 of [lie Companies Act. JU1J 1'Act'l read with the Companies (Indian Accounting
Standardsf Rules, 301E. and Campanil (Indian Account np Standard}. Amendment Rules 2Q1G and the relevant
provisions or the Act.
[li) Basis or Preparation ol financial Statements
These financial statentMns have been prepared in accordance with Indian Accounting Standard find AS), under
the historical cost cojiyenlpon on the accrual basis cccept for certain financial instruments which are measured
at fair value at fh? end of each re porting period, *s explained in ihe .ircouniine oolites mentioned below.
All »sfti .md I? .iLi11icirj-. h.iv^ b^pn citified at current or non-curreni as per The Company's normal operatmg
cycle rind other criteria set out In Schedule III to the Companies Act, 1Qi3. The Company has ascertained its
operating cycle as l£ months for the purpose or current and ^or: current classification of assets and h*bi!n in
The operatiogcycle is thetune between the acquisition oF assolsfor processing and I heir realization in cash
andoash equivalents The Company has identified twelve months as its ope rating cycle
functional and Presentation of Currency
These financial statements are presented In Indian rupees, wn.cn is the Company's functional currency. All
amounts have been rounded to the nearest Rupees m Lacs unless- otherwise indicated
(ili) U=e of Estimates, Judgments and Assumptions
in the preparation of 1 he financial luttmifltl, the Company nukes judgements, estimates and assumptions
jtbpui the carrying value of assets and liabilities that are net readily apparent from other sources. The
estimates and associated assumptions are based on h.vtorifal experience and other Tactcn that ?tb'
considered to be relevant. At ru.it results may d=ffer Irom these estimates.
Estimates and underkyin^ assumptions are rcvirwed on .sn ongoing basis. Revision* tp accounting estimates
n*e rocognired i™ |hr period in which the estimate is revised and Future periods affected.
Key source of estimation of uncertainty at the date df the rmantral statements, which mjy cause material
adjustment to (he carrying amounts of assets and liabilrnec within the ÝÝÝ i_-:<c financial year, is in respect of
impjirmentr useful lives of property and plant and equipment, valuation of deferred tas assets, provisions
and contingent hat; lilies, fair value measurements of financial instruments and retirement benefit
obligations as discussed below
Impjirmrrtt
Thu Oump-d.ny e-STiinai-ei [hl1- Ý.mIllll iri use ?* The rash genyr.il mg unil |CGU| tiiuLd un Ml ure c.ish flows .tFEcr
considering current economic conditions in d trends, estimated luture operating res uhs and growth rates and
amiri pateef future econpuirc: and regulatory conditions The estimated cash flows ace developed using
iihtrrnjl fOFHllH The tlfh lluwi Jrt : list punted u'.mg .1 vuil.iUle discount rale in -ur-der lu calculate 11 it:
present value
U^rful livei uP property. pl.inl And Hiquip-m rnl and i-nllngiblr j-viutt
The Compiny reviCwl thy usyfur Idf pF pooped y. pl^nl jnd cquipmynl and iSi*E' *t Tht end of
riChrypOrUng ptnnd This ryaswiimynl m*y resutl in ditfigy tn di'prfrt'J’iOn inrf .tmiJiTisaiion expense lh
future pei dds
Valuation cl deferred lax assets
The Company rtutciw ihe tarrying amount *t deterred tawissAft The end of each reporting period,
provision; and contingent liabilities
a prevision ib recogmied when the Company has ? present obligation as mult cl a pass event and it n
probable Thu thy ouiFlow g| resources will be required to settle the oblijjalion, in respect d! which a reliable
estimate can be made. Thysr are rewe^ed at each balance sheet dale and adjusted to retied the current
best estimates. Contingent liabilities are net recognued tn the financial iTiEumimtv
fair value measurements of financial instrumems
When the lair value of financial asset; and financial liabiliHy, etcurdrd in thy balance sheet cannot be
measured based on quoted prices In active markets, then fair value is iffhwvwl using valuation techniques
ÝncJudmg Discounted Cash Flow Model. The Inputs to these modeJs are taken from observable markers where
possible, tut where- this is not feasible, a degree or i-udeement n required in establishing fair value
Judgements include considerations of input; mh ns liquidity risks, credit ri-sVs and volatility Changes m
assumptions about these lectors nmUaHed the reported Talr value of financial Instruments,
Retirement benefit obligations
Thy Company^ retirement bene Fit obliE^lions are subject to number of judgements including discount rales,
inflation and salary growth. Significant judgements are required when setting these criteria and a change In
these assumptions would have- .1 significant impact on thy .1 mount ry: cried in |hy Company's balance sheet
and the statement of profit and loss. The Company sets these judgements based on previous experience and
third party actuarial adViey-
I in] proper! Vj plant and equipment
*n cem of property, plant and equipment ij rycoEr|-rcd as an- esse! if it It probable that future economic
benefits associated wnh the Hem will flow to the Company and its cost can be measured reliably. This
recognition principle it applied to costs incurred mir allv to acquire anitm o1 property, plant and equipment
nnd also to costs incurred subsequently to add ro. replace pan of. or service it Ml pihyr repair and
maintenance tons. Including regular servicing, are recognised in th? statement of profit and loss as incurred.
When a replacement occurs, [he cwrying value or (he replaced part is de-recogniied Where an Hem of
property, plant, and equipment comprises m i|pr corr-poni-n:- haying different uiyfiil lives, these components
are accounted for as separate items.
Property, plant and equipment is stated at cost Or deenu-d co;( eppbed on IrthtMon to Ind A5, less
accumulated depreciation and imparrment. Cost ncludcs all direct costs and expenditures incurred Cb bring
thy asset to its working condition and location for Its intended use. "rial tun tup-try,ei jnyt nf f*vtnut] Arc
capitalised, Sorrowing costs incurred during the pence oF construction is capnalised as pan of cost ol
qualifying asjel.
The gain or loss arising on disposal of an item of property, plant .1 r.d wqui-pmeot is determinyd as Iht
difference between sale proceeds end carrying value oF such item, and If recognized in the statement of profit
nnd Iw
Subsequent e Kpi- nrfil ur e
iuoteq-j-on': expenditure is cap r^i-ted only iH n 4 probable that dv hdurti «oiwmi( benefits hwcimd with
the onpc-ndil ur e wi 111 li ivy to I h i1 r.fi m p any
Depreciation pf Fined Assets
?uprecidliull on property, piuI -1 and equipment is provided cm Written down yahi? method |WDV) J1 per lh^
useful litr cl 1 hr1 iiieb in the manner ,r, ipecitird in hlwjulf II tn Ihp Companies Act, 1013 the estimated
useful life of assets and iHimind residual value is taken as prescribed under Schedule II icnhe Companies
Am, 2013.
Depreciation pn add t oni during the year is presided an pro raid basts with reference to date ui
addilin-n/inslall.ilinn. Chrpresiathpn cp assets chspHiscd/disrarded is chirped up to the date on which such
aisei is sold.
(u| Investments tn subsidiaries
Investments In subsidiaries are carried at cost/deemed cost applied on transition Id Irvd AS, less accumulated
impairment IWscv if any Where an mdwatmn ?( impairment CJii-sTS, (hr carrying amount pT investment t
assessed and an impairment provision is recognized, if required immediately to its receiver able amount. On
disposal of sudt investments,, difference between the net disposal proceeds and carrying amount s
recOgniiedin the statement O'l prijlit and lev-
| in) Revenue
Revenue li measured nr the lair valur nr [hr < nm deration rrcniii'd ur receivable. Revenue is recognized to
theejrtenr that it Is probaHe that 1he economic denefn ivttl flow to the company and the revenue can be
measured rehablv and there is no cpnimuin^ effective conTnol/minaRenql involvement ip respect of (be
rrvehm iCtruily.il drscrib.d bHdw
a) Sale of Services
Ri'VL-n;:r hern sale ui services are rec canned when agreed contractual task, has been compleied or
services are rendered
hi Sale of floods
Revenue from sale of products is recogniied when control of the products has transferred, being when
Che products are delivered to me tuttomer Delivery occurs when the products have been shipped or
delivered ia ihu specific locatFon js the case may be., the nsKs of loss has been transferred, end dither
the customer has accepted the products In accordance with the sales contract, or the Compjnv has
objective evidence thaf all crileru for aCCtplamt have brrh i JTisfied.
Revenue fwn sales is measured net of returns, [fade discounts and volume rebates, G5T wherever
applicable Further, me revenue amounl is adiusled for the time value of mooey if that contract
contains a significant financing component
The timing pf rhr transfer of somrol v.mes depending on the mdivid-jaHerms of the sales agreement
<) Interest and Dividend
IntereH income is recognized on accrual basis using the elective interest method. Dividend income is
recognized in pr.itn lh loss on the dare pn wn.ch the company's nghi ro receive payment is estabfished
fi] Employee benefits
a]DcfimLd benelii plans
The liability for gratu.ty a defined beziefii plan is determined annually by a qualified actuary using the
proieCteduniT tredht method.
The tompany bays greiyiiy to [he en-ployees who have completed 5 ifears Of service with company al
the limewhen [hp employee leaves the company as per the Payment erf Gratuity Acf, 1972.
ttemeasuzement of the nei defined beneht liability, which comprise actuarial gains and losses, me
return uri |j|.,n ivetf (neludieg interest) and tup efiect of the asset ceding hf any, -picrlijri-r.|-. Interest],
ere rccognii-ecl immediately 'n OCi Mel intrirsi expert in | income | on the rtft defined liability (assetsh rs
computed by applying [he discount face, used to men Hire (he net dehned liability |aise(J. to The nei
deFincd liability jasietj at th* tbd u* [hr (injFKi.il ytjd iHn taking Into account rchanges « n mull
of oontributLon end benefit payments during the yiL>tr rj-Ý’ ntffHl uKpertse and other expenses related
La defined benefit plans are recognised tn profit or loss
When itie benefits al a plan are changed at -when a pi .in ij curtailed. the mull mg. change in benefit ihat
rrfnlesto past service m [he f.i Ý> ur loss on £urc*il(ilflnt S recognised immrfli.ytrly in prpILt nr Idns The
Company recognises gams and losses on The seltle-mem pi a defined hnnefit plan when the settlement
occurs.
bt Denned coomb ulion plans
The Company's payments to the defined conTrtbuiion plans are r«ogniied as expenses doting the
pptiod in- which (he employees perform ihe iiryitH mat payment cavers. Defined contribution plan
comprise oF contribution to (he empFoyees' provident lund w-th government, Emprpyees' State
Insurance and Pension Scheme.
d Short term employee benefits
Shon-tetm employee benefits *r*exptmed at (he related service rs provided. A liability is recognized
for the amount ojpeered to be paid if the company has a present legal or constructive obligation To pay
this amount as a result of past service provided by ih<? employee and the obFigahon can be estimated
reliably.
d] Other Employee benefits
Compensated absence* which .ire not expected to occur within twelve months Alter the end of (he
period in which the employee renders the related services are recognized as a i-ability at the present
value of obligation as at the Balance sheet date determined based on an actuarial valuation.
[ii> Incorn# Ta*
Income lac expense comprises current anc deferred lax. ft is recognized in profit or loss except to the
extent that it relates Id a business combination, or items recognized directly in equity or in OCT.
i| Current tix
Current tax comprises the expected th plyibltpf WmAl| cm ihe i.iK.ih:i- income ?r loss 1-pr ihe ye.n
and any adjustment to Ihe tax payable or receivable m respect of previous years. It is measured using twt
rttts enacted OV substantively enacted nt 1he reporting date Current tax also includes any tax an sing
from dividends.
Current tax assets and fiabililies are offset ontyiF, the Company
a| has a legally enforceable right rp set orr (he rycognijed amounis; and
h) Intends either 10 settle on 3 net basis, of to realise the asset and settle the liability
simultaneously.
t| deferred tax
Deferred tax is ncofntald pn temporary diFFerences between 1he tarrying amounts of assets and
liabilities rn the financial Hiiemcnts and the corresponding (ax bases used In (he XGinpuiation of taxable
profit, deferred (ax liabilities .up generally PKofniiftd for ah taxable temporary differences DeFprred lax
assets are generally recognized for nil deductible temporary deferences to ihe extent tfui it is probable
that taxable profits will be available -igainst which those deductible temporary differences can be
utilised- Such deFerzed tax assets and liabthUti are nni recognized il the temporary difference arises from
the in [i.iI recognition of assets and Liabilities In a transaction rh.ii jfjecls neither the taxable profit nor
the accounting profit.
iPifl carryrng amount 0-1 dett'i fed 1 j-v assers is Kvtewfd i! ihh1 i ndl tF e-;n h reporting period and reduced
i-o ihe extent ih.u: n it no longer pmb.ii'!'1 ih.it \uPfni?nt noablt proriis win be available io anow an or
pjrE ?! the nsscf tg bo rgcOVemO
DtltrreiJ E J* Jipbihrn^ ,imj frn«t' arc measured at thelak rates That a*e expected to apply m the prrjud
in whii-h rhn Imhility ji scttrpnl gr 1 h.- asset reused, based Oil IJx r,nL*i (jnd tin laws) thnl have been
enacted v Subitairtlvelf enacted by ttve end of the reporting prricHj.
deferred tax assets include Minimum Alic-rwarive Tax (MAT] paid ip accordance -j-it i ihe iak laws bn ilncfu.
which is tikely Id give future Hon^nbc benefits |n ihe lomi o' avaHIjit:Muy nl set off against future income
UX liaibHity AfiCEmdingly, ma1 is recognized as deferred lar asset m The balance sheet when thr asset can
be measured reliably, and n h prpbabte [hai (he Puiure economic benePil associated with the asset will
be realised
Deleted 1*« jsjrtS jnd lur:.kin's jrr ofFjrt only I
a] The entity has a Ý g-ra-ly enlorceebie n^ht to set bflcurrent lay assets against current tax
liabilities,
h|Thc delernciJ r,ii assets and I he deFprrcd taa Uabhilies relate to income ta*es levied by the
lamfl J>:.bt'i.|rl .luEhpntv on Ihe umr Taxable ctltily
(ill) Foreign Currency IrantJCIiUm jn-d irinibEiMi
The hnjncbal statement* of the Company are presented m Ind.jir. Rupees. which is The Punct-onat currency
nl the Companv and The pritseuMjiM currehcv Tor the riMrttU siatementi.
Trjnsactipns .n Foreign Ýrurnencici jre (rjnstulriJ m|p (he respective lundipnaJ currencies oP the company
at TheWCCtohgt Mu V 1 ir dotts of Ihc h .ir-vj-LE. an-i.
Monetary asset* and liabilities denominated in Foreign currencies are translated mto the Functional
currency atlhp erchange rate at IhF reporting date Dillerence arising on settlement oF monetary iiems are
generally recognized in stal^mcnt oF p-iulit a id 1uss
Non'monetary items that are measured based On historical cost m a foreign currency are not translated
Nnn- monetary assets and labilities Hue are measured at fair value in a foreign. currency are translated
into the functional currency at the exchange Fite when the Pair value was determined. Exchange diiferpnce
arising nut of these Ifansjctions .irr geAfrrallv recogmfed m watertight of prCifil and loss.
(jtf) Borrowing cost
Borrowing COStS directs atl rhbu r*Wc to the acquisition, cpnslroctppn or prpdutlion OF qualifying assets,
which arc siytn That neLH^t.imy r-ike a substantial period ui rime to i-loi ready Tor their intended use or
sale, are added ta Ihe cost ol those assets, until such time os the nssels is substantially ready for ih?
intended use or sale
Qualifying ^sset are ihe T.-.fi', rlut necessarily takes a substantial period o1 time to get ready tor rtt
Ýmended nit Other borrowing costs are recognized as an expense m the period in which they are
incurred.
Investment income earned on temporary mvevment of specific borrowings pending their expenditure on
qual-Fymg assets n rpcu^niicJ m the siaterieirt of profit and lass
[v| Cash and Cash Equivalrm
In cash flow state men!. Cash and cash equivalent includes the cash and Cheques in ha<nj, bank belays,
demand deposits with bank mil other short term, highly liquid inveslmenls with original maturity ol three
months or ten that i>re readily convertible to known amounts of cash ind wluclt are sub|ecl lo an
insignificant risk d changes m value
Bank overdraft is shown ivithm borcDW-mgs in current liabilities in the bHance sheet and lorms pari oF
linuncmgdttiviiies in the cash Itpw stalemrni. BnaV overdraft are shown within other financial liabilities n
ihe balance sheet and lorms part oF pper^ting acTivlties iri the cash flow statement.
[vil t?jh Flow Statement
CbH flows .! i <Ý r i' [i 111 d using mdrrrt m-r-thod. whr.'ii'by profit/ lluss-F before IJK ’S adi^Etec for the effect
oF transactions of non-cash nature and any deferrals or accrual o( pa-st or future cish receipts or
payments and items of income or expenits associated vvitn investing or financing cash flow The cash flow
frpir. operet ng. investing .uki lip.i-nnrig activities p! the cnrnpjny is srgiegoEed based on ihe available
information.
[vii] Earnings pee Share
i| Basic earning* per -chares is arrived a1 based on net prplrt / [loss) ad or ti* available to equity
shareholders cfiyidcd hy Weighted average number erf nuity shares, adjusted (or Uoaus elements in eqoily
shares issued during the year 4if any) and excluding treasury shares.
m| Diluted eurtunj* per sh-ires is caScu-.ned hy dividing Prplit afflribUllUt to equity holders after tan divided
by weighted average number of shores considered for basic earning per shares including potential dilutive
equHty sharer
|