The operating cycle Is the time between the acquisition of assets for processing and their realization In cadi
and cash equivalents. The Company has identified period up to twelve months, es Us operating cycle.
Ý Foreign Currencies
Functional and presentation currency
Tbs financial statements are presented In INR, which is the Com puny ?s functional currency, foreign c^reocy
transactions are Initially record*! at functional currency spot rabr* at the date tiw irarttoction first qualifies
for recognition.
Property, Plant and Equipment
Property, plant, and erpriptrent are cetYied at cost of acquisition, less accumulated rteprecl&timi qnd
accumulated Impairment, If any. Com comprise* purchase price and directly attributable cq$t of bringing the
asset to ib working condition for the intended use, Whan significant parts of piant and equipment are required
to be replaced at intervals, the Company depredates them separately based on their specific useful lives
Likewise, when a. major Inspection is performed, Its cost Is recognised in the carrying amount of the plant and
equipment as a replacement if the recognition criteria are satisfied. Ail other repair and maintenance cost*
are recognised in the Statement of Profit and Loss os incurred. The present value of the expected cost for the
decommissioning of nn asset after Its use is included in the cost of the respective asset if tte recognition
criteria for a provision are met. Material items sue* ^ spare parts, stand-by equipment and service equipment
are classified as PPE when they meet the definition of PP)E as specified in Ind AS If - fToperty, Plant and
Equipment
An item of froperty, Plant and Equipment and any significant part Initially recognised is derecognised upon
disposal or when no future economic benefits are wpected from its use or disposal. Gains or looses arfslr^
from derecognition of the asset are measured as the difference between the net disposal proceeds and the
currying amount of the asset and are recognized in the Statement of Profit and Loss when the asset ts
derecognized.
Depreciation nn Property, Plant and Equipment other than land ts provided on the Stralgru-Llw Method to
allocate their cost, net of their residual values on the basis of useful Iteet prescribed In the Schedule n of th-
Companies Act, Z013,
inventories
Inventories are valued at the lower of cost and net realisable value, Haw materials, Stores ft Spare parts.
Finished Goods and Traded Goo* stated at the lower of cent and estimated net realisable value. Cost comprise
expenditure Incurred in this normal course of bittiness in bringing such Inventories to their present location
end oafidttlcn and Includes appropriate overheads {]h case of Finished GoodsByproducts, whose cost is not
identifiable, are valued at estimated net realisable value. Cost Is determined on weighted average basis,
tluwever. materials and other Items held for use in lhe production at inventories are not written down below
cost 1f the finished products in which they will be incorporated are expected to he sold 'are At or above cost.
Het realizable value Is the estimated selllny price in the ordinary oourws of business, less estimated tost; of
r:omptetlon and estimated costs nacre wry to make the tele.
Omh and Cash Equivalent;
Cain anil cash equivalent comprise cash at banks and t*i hand imJ Jtv>rt-teim deposit* with an original maturity
of three months or less, which are subject to an Insignificant risk of changes In value.
Ttede FteceWahhri
Trade receivables are recognized Initially at the trwisattfcn price as tlvey do not contain significant financing
components. The Company holds the trade raceivaWK with the objective of coiled! ng the contractual cash
flows and therefore measures them subsequently at amortised cost using the effective Interest method, la®
loss allowance.
Impairment of nan-flnahCl»l 41MiS
Th* tympany assesses at tach reporflns data wherhef thereIs an indication mat an axrct may be impaired. If any indtratfan
©defcs, the Company estimate* tha asset's recoverable amount An asset's retoverable amount Is the higher of an asset’* or
cash-generating units' (G5U J net oilrig prtte and Its value In use. The recoverable amount Is determined for an Individual
asset unless die asset does not generate cash Inflows t hit are largaiy independent of those from rfher assets or groups qf
assets, Where the carrying amount of an asset or CGU exceeds its recoverable amount, the ssset i
considered impaired and Is written nown to Its recoverable amount
In assessing value In use. the iitimatcd future cash Hows are diistounted to their r>rewm value using a pr&,iaxdlsrr:i!rii
rate that reflects currem. rnsruet asaewmentsofthe time value of money and the risks specific to the asset, in determining
net salting price, recent market transactions are taken Into account, if available. If no such transitions ran be identified.
.Art anhmrrhf* uali lafirtn mrJdl I*
TJi* Company bases its Impairment oaliuPriori or: detailed budget; <infl forecast calculation} which are prawea separately
for each of the Company's cash-ganarating units to which the individual assets ers allctared. impairment losses ol
continuing operations. Including impairment on inventor are recttfinised In the Statement of Profit and loss
Revenue from contracts with customer
Avenue from contracts with customer is recognised when control of the goods or services are transferred to
the customer at an amount tltat reflects the consideration to which the Company expects to be entitled In
exchanae for these goo* or sendees. The Company has generally concluded that ft is the principal In Id
revenue arrangements, because it typically control* the goods or services before transferring them to the
customer Revenue is measured at the amount of transaction pric^ net of returns, discounts, volume rebates,
outgoing sales taxes Including goods and service tax. The Company reajgnfssi. revenue whan the amount of
reverrue can be reliably measured, it r& probable that future economic benefits wfU flow to the Compare/
regardless of when the payment Is being made. The specific recognition criteria described below must also be
met before revenue is recognised.
Sale of Goods
Revenue from sale of goods H recognized when the Company transfers the control of flood* to the customer as
per the terms of contract The Company considers whether there are other promises In the contract that are
separate performance obtlflattons to which a portion of the transaction price needs to be allocated. in
determining the transaction price, the Company considers the effects of variable eontideratiun, the existence
of significant financing somporimt, non-cash considerations and consideration payable to the customer (it
any).
Interest Income
Interest Income 1s recognised on & rime proportion basis taking into account the amount outstanding and the
applicable Interest rate. Interest income from debt instrument; is recognised using the effective interest rate
method.
Taxation
Tax expense is the fiflgreflftte amount Included In the determination of profit or loss for the period in respect
of current tax and deferred tax. Current tax: Current tax h the amount of Income taxes payable In respect of
taxable profit for a period. Taxable prefit differ: from "profit before tax' a; reporter in the Statement of from
and Loss because of items of income or expense that are taxable oi deductible in other yean and items that
are never taxable or deductible under the Income Tax Act, 1961. Current tax is measured using tax rates that
have been enacted by the end at reporting p&Hod for the amounts expected to be recovered from z* paid to
the taxation authorities.Deferred rax s recognised on temporary differences between the carrying aments of
assets and liabilities in the Financial Statements and the comespondlnfl tax bases used in the computation of
taxable profit under income tax Act, 1961. Deferred tax assets and liabilities are severally recognised for all
deductible and taxable temporary differences respectively. However, In case of temporary differences that
arise from initial recc^nltlon of assets ;jr liabilities in a transaction (other than business combination) that
affect neither the taxable profit norths accounting profit or1 does rxrt give ri$e to equal taxable and deductible
temporary differences, deferred tax assets or liabilities are not recognised- Also, foe temporary differences if
any rtat may ari&e from initial recognition of goodwill, deferred tax liabilities ere not raoosntred. Deterred
tax assets are recognised to tf* extent It is probable that taxable profits will be available against which thme
deductible temporary difference can U utilized. The canylnj amount of deferred tax assets is reviewed at
tha end of eadi reporting period nod reduced to the extent that it is no longer probable that sufficient baxabta
profits will be available to allow the benefits of part or ftU of such deferred tax assets to be utilized, Deferred
tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by
the balance Sheet date and are expected to apply to taxable Income in the years in which those temporary
differences are expected to be recovered or settled.Presentation of current and deferred tax: Current and
deferred tux are recognised as income or an expense to the Statement of Profit and Loss, except deferred tax
relating to items recognised outside profit or lost is recognised outside profit or lota (either in other
comprehensive Income or fn equity).
Segment fteportfbi
The Company operates in a single business segment ami In n single geographical ^rea. Accordingly, there are
no separate reports We segments as defined by Indian Accounting Standard (ind AS) tft) on Operating Segments.
Earning* per Share
B^sic Earnings P*J is calculated ty dividing the net profit or toss for the period attributable to equity
shareholder by the weighted average number of equity shares outstanding during the period
The weighted average number of equity shares outstanding during the period is adjusted for events sudi as
bonus issue, bonus dement In a rights issue, share split, and reverse share split (consolidation of shares) that
have changed the number of equity shares outstanding, without a corresponding change In resources.
ror the purpose of calculating diluted earnings per share, the ncn. profit or loss for the period attributable to
cjqufty shareholders and the weighted average numter of shares outstanding during the period Is adjusted for
the effects of all dHutlye potential equity shares.
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