2. MATERIAL ACCOUNTING POLICY INFORMATION
2.1 Basis of preparation

These standalone Ind AS financial statements have been
prepared in accordance with Indian Accounting Standards
(Ind AS) notified under the Companies (Indian Accounting
Standards) Rules, 2015 (as amended from time to time) and
presentation requirements of Division II of Schedule III to the
Companies Act, 2013 (Ind AS compliant Schedule III).
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 hitherto in use.

The standalone Ind AS financial statements are presented
in Rs. and all values are rounded to the nearest Lacs (Rs.
00,000), except when otherwise indicated.

The standalone Ind AS financial statements provide
comparative information in respect of the previous year.

Basis of measurement

The standalone Ind AS financial statements have been
prepared on historical cost basis, except for the following
assets and liabilities which have been measured at fair value
as required under relevant Ind AS.

- Certain financial assets and liabilities are measured at
fair value (Refer accounting policy regarding financial
instruments in Note o)

- Defined benefit plans - plan assets are measured at fair
value

a. Current versus non-current classification

Based on the time involved between the acquisition of
assets for processing and their realization in cash and
cash equivalents, the Company has identified twelve
months as its operating cycle for determining current
and non-current classification of assets and liabilities in
the balance sheet. Deferred tax assets and liabilities are
classified as non-current assets and liabilities.

b. Investment in subsidiaries, associate and joint
venture

A subsidiary is an entity that is controlled by another
entity.

An associate is an entity over which the Company has
significant influence. Significant influence is the power
to participate in the financial and operating policy
decisions of the investee but is not control or joint
control over those policies.

A joint venture is a type of joint arrangement whereby
the parties that have joint control of the arrangement
have rights to the net assets of the joint venture. Joint
control is the contractually agreed sharing of control
of an arrangement, which exists only when decisions
about the relevant activities require unanimous consent
of the parties sharing control.

The Company's investments in its subsidiaries,
associates and joint ventures are accounted at cost less
impairment.

Impairment of investments

The Company reviews its carrying value of investments
carried at cost annually, or more frequently when there
is indication for impairment. If the recoverable amount
is less than its carrying amount, the impairment loss is
recorded in the Statement of Profit and Loss.

When an impairment loss subsequently reverses, the
carrying amount of the Investment is increased to the
revised estimate of its recoverable amount, so that the
increased carrying amount does not exceed the cost
of the Investment. A reversal of an impairment loss is
recognised immediately in Statement of Profit or Loss.

c. Property, plant and equipment ('PPE')

Recognition and measurement

Property, plant and equipment are stated at cost
net of accumulated depreciation and accumulated
impairment losses, if any.

Cost of an item of PPE comprises its purchase price,
including import duties and non-refundable purchase
taxes, after deducting trade discounts and rebates,
any directly attributable cost of bringing the item to
its working condition for its intended use. The cost
of a self-constructed item of property, plant and
equipment comprises the cost of materials and direct
labour, any other costs directly attributable to bringing
the item to working condition for its intended use,
and estimated costs of dismantling and removing the
item and restoring the site on which it is located, if the
recognition criteria is met. If significant parts of an item
of property, plant and equipment have different useful
lives, then they are accounted for as separate items
(major components) of property, plant and equipment.
Capital work-in-progress is stated at cost, net of
accumulated impairment loss, if any. Property, plant
and equipment are stated at cost of acquisition or
construction which includes capitalised finance costs
less accumulated depreciation and accumulated
impairment loss, if any.

Recognition criteria

The cost of an item of property, plant and equipment is
recognised as an asset if and only if,

(a) It is probable that future economic benefits
associated with the item will flow to the entity,
and

(b) The cost of the item can be measured reliably.
Capital work-in-progress comprises the cost of
property, plant and equipment that are not ready
for their intended use at the reporting date, net of
accumulated impairment loss, if any. Advances paid
towards acquisition of PPE outstanding at each balance
sheet date, are shown under other non-current assets.

Any gain or loss on disposal of an item of property, plant
and equipment is recognised in the Statement of Profit
and Loss.

Subsequent expenditure

Subsequent expenditure is capitalised only if it is
probable that the future economic benefits associated
with the expenditure will flow to the Company and its
cost can be measured reliably with the carrying amount
of the replaced part getting derecognised.

Depreciation

Depreciation is calculated on cost of items of PPE less
their estimated residual values over their estimated
useful lives using the straight-line method and is
recognised in the Statement of Profit and Loss.

that these estimated useful lives are realistic and reflect
fair approximation of the period over which the assets
are likely to be used.

The depreciation method, useful lives and residual
values are reviewed at each financial year-end and
adjusted if appropriate.

Depreciation on additions (disposal) is provided on a
pro-rata basis i.e. from (upto) the date on which asset is
ready for use (disposed of).

Derecognition

An item of property, plant and equipment is
derecognised upon disposal or when no future
economic benefits are expected from its use and
disposal. Any gain or loss arising on derocogntion of the
asset is measured as the difference between the net
disposal proceeds and the carrying amount of the asset
and is recognised in the Statement of Profit and Loss.

d. Intangible assets

Acquired Intangible

Intangible assets that are acquired by the Company
are measured initially at cost. Cost of an item of
Intangible asset comprises its purchase price, including
import duties and non-refundable purchase taxes,
after deducting trade discounts and rebates, any
directly attributable cost of bringing the item to its
working condition for its intended use. After initial
recognition, an intangible asset is carried at its cost less
any accumulated amortisation and any accumulated
impairment loss.

Amortisation

Amortisation is calculated to write off the cost of
intangible assets over their estimated useful lives using
the straight-line method, and is included in depreciation
and amortisation expense in Statement of Profit and
Loss.

The estimated useful lives are as follows:

- Technical know-how 4 Years

- Software 6 Years

Amortisation method, useful life and residual values are
reviewed at the end of each financial year and adjusted
if appropriate.

Derecognition

Intangible assets are derecognised on disposal or when
no future economic benefits are expected from its use
and disposal. Any gain or loss arising upon 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.

Intangible asset under development that are acquired
by the Company comprises its purchase price, including
import duties and non-refundable purchase taxes, after
deducting trade discounts and rebates, any directly
attributable cost of bringing the item to its working
condition for its intended use.

Research and development costs

Research costs are expensed as incurred. Development
expenditures on an individual project are recognised
as an intangible asset when the Company can
demonstrate:

> The technical feasibility of completing the
intangible asset so that the asset will be available
for use or sale

> Its intention to complete and its ability and
intention to use or sell the asset

> How the asset will generate future economic
benefits

> The availability of resources to complete the asset

> The ability to measure reliably the expenditure
during development

Following initial recognition of the development
expenditure as an asset, the asset is carried at cost
less any accumulated amortisation and accumulated
impairment losses. Amortisation of the asset begins
when development is complete, and the asset is
available for use. It is amortised over the period of
expected future benefit. Amortisation expense is
recognised in the statement of profit and loss unless
such expenditure forms part of carrying value of
another asset. During the period of development, the
asset is tested for impairment annually.

The cost of inventories includes expenditure incurred
in acquiring the inventories, production or conversion
costs and other costs incurred in bringing them to their
present location and condition.

Net realisable value is the estimated selling price in the
ordinary course of business, less the estimated costs
necessary to make the sale. The net realisable value of
work-in-progress is determined with reference to the
selling prices of related finished products.

Raw materials and other supplies held for use in the
production of finished products are not written down
below cost except in cases where material prices have
declined and it is estimated that the cost of the finished
products will exceed their net realisable value.

The comparison of cost and net realisable value is made
on an item-by-item basis.

f. Retirement and other employee benefits

Short-term employee benefits

Short-term employee benefit obligations are measured
on an undiscounted basis and are expensed as the
related service is provided. A liability is recognised for
the amount expected to be paid e.g., salaries and wages
and bonus etc., if the Company has a present legal or
constructive obligation to pay this amount as a result of
past service provided by the employee, and the amount
of obligation can be estimated reliably.
Post-employment benefits
Defined contribution plans

A defined contribution plan is a post-employment
benefit plan under which an entity pays specified
contributions to a separate entity and will have no
legal or constructive obligation to pay further amounts.
The Company makes specified monthly contributions
towards employee provident fund and employee state
insurance scheme ('ESI') to Government administered
scheme which is a defined contribution plan. The
Company's contribution is recognised as an expense
in the Statement of Profit and Loss during the period
in which the employee renders the related service.
Certain employees of the Company are also participants
in the superannuation plan ("the Plan"), a defined
contribution plan. The Company makes contributions to
Life Insurance Corporation of India (LIC). Contribution
made by the Company to the plan during the year is
charged to Statement of Profit and Loss. The social
security costs, paid for the overseas employees, are in
the nature of defined contribution schemes as per the
laws of that country.

Defined benefit plans

A defined benefit plan is a post-employment benefit
plan other than a defined contribution plan. Gratuity
is a defined benefit plan. The administration of
the gratuity scheme has been entrusted to the Life
Insurance Corporation of India ('LIC'). The Company's
net obligation in respect of gratuity is calculated
separately by estimating the amount of future benefit
that employees have earned in the current and prior
periods, discounting that amount and deducting the
fair value of any plan assets.

The calculation of defined benefit obligation is
performed annually by a qualified actuary using the
projected unit credit method.

Re-measurements of the net defined benefit liability
i.e. Gratuity, which comprise actuarial gains and losses
are recognised in Other Comprehensive Income (OCI).
Remeasurements are not reclassified to profit or loss in
subsequent periods. The Company determines the net
interest expense (income) on the net defined benefit
liability for the period by applying the discount rate
used to measure the defined benefit obligation at the
beginning of the annual period to the then- net defined
benefit liability, taking into account any changes in the
net defined benefit liability during the period as a result
of contributions and benefit payments. Net interest
expense and other expenses related to defined benefit
plans are recognised in the Statement of Profit and
Loss.

When the benefits of a plan are changed or when a plan
is curtailed, the resulting change in benefit that relates
to past service ('past service cost' or 'past service
gain') or the gain or loss on curtailment is recognised
immediately in the Statement of Profit and Loss. The
Company recognises gains and losses on the settlement
of a defined benefit plan when the settlement occurs.

Compensated absences

The Company's net obligation in respect of long-term
employee benefits other than post-employment
benefits is the amount of future benefit that employees
have earned in return for their service in the current and
prior periods; that benefit is discounted to determine
its present value, and the fair value of any related assets
is deducted. Such obligation such as those related to
compensate absences is measured on the basis of
an annual independent actuarial valuation using the
projected unit cost credit method. Remeasurements
gains or losses are recognised in profit or loss in the
period in which they arise. The Company presents the

leave liability as a current liability in the balance sheet;
to the extent it does not have an unconditional right to
defer its settlement for 12 months after the reporting
date. Where Company has the unconditional legal and
contractual right to defer the settlement for a period
beyond 12 months, the same is presented as non¬
current liability.