2.Material Accounting Policies

2.1 Statement of compliance

The financial statements have been prepared in accordance
with Ind AS notified under Sec. 133 of the Companies Act,
2013 read with Rule 3 of the Companies (Indian Accounting
Standard) Rules 2015 and other relevant provisions of the Act.

2.2 Basis of preparation and presentation

These financial statements are prepared in accordance with
Indian Accounting Standards (IndAS) 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('Act') (to the extent notified) and
guidelines issued by the Securities and Exchange Board of India
(SEBI).

Historical cost is generally based on the fair value of the
consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between
market participants at the measurement date, regardless of
whether that price is directly observable or estimated using
another valuation technique. In estimating the fair value
of an asset or liability, the company takes into account the
characteristics of the asset or liability at the measurement
date. In addition, for financial reporting purposes, fair value
measurements are categorised into

Level 1 (unadjusted quoted prices in active markets for
identical assets or liabilities that the entity can access at the
measurement date);

Level 2 (inputs other than quoted prices included within Level
1) that are observable for the asset or liability, either directly or
indirectly;

Level 3 (unobservable inputs for the asset or liability).

Fair value in respect of equity financial instruments are the
quoted prices of those instruments in the stock exchanges at
the measurement date.

a) Current and Non-Current Classification

The Company presents assets and liabilities in the balance
sheet based on current/ non-current classification.

An asset is treated as current when it is:

• Expected to be realised or intended to be sold or
consumed in normal operating cycle;

• Held primarily for the purpose of trading;

• Expected to be realised within twelve months after
the reporting period, or

• Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least
twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the
reporting period, or

• The company does not have a right at the reporting
date to defer settlement of the liability for at least
twelve months after the reporting date.

The classification of liabilities is based on the rights
and conditions existing at the reporting date and is not
affected by management's expectations about whether
the company will exercise its right to defer settlement.
The Company classifies all other liabilities as non-current.

b) Functional and Presentation Currency

Items included in the financial statements of the
Company are measured using the currency of the primary
economic environment in which the Company operates
("the functional currency"). Indian rupee is the functional
currency of the Company.

The financial statements are presented in Indian Rupees
(C) which is the Company's presentation currency. All
financial information presented in Indian Rupees has been
rounded up to the nearest Crores except where otherwise
indicated.

c) Use of Estimates

The preparation of standalone financial statements in
conformity with Ind AS requires the management to

make estimates and judgements that affect the reported
amounts of assets, liabilities, revenue, expenses and
other comprehensive income (OCI) that are reported and
disclosed in the financial statements and accompanying
notes. These estimates are based on the management's
best knowledge of current events, historical experience,
actions that the Company may undertake in the future
and on various other assumptions that are believed to
be reasonable under the circumstances. Actual results
could differ from those estimates. Changes in estimates
are reflected in the standalone financial statements in the
year in which the changes are made.

Significant estimates and assumptions are used for, but not
limited to,

a) Estimation of useful life of Property, Plant and Equipment,
Refer Note: 2.3 & Note 3

b) Estimation of useful life of Intangible Assets - Refer Note
2.4 & Note 4

c) Provisions and Contingent Liabilities - Refer Note: 30.1

d) Recognition of deferred taxes - Refer Note: 14

e) Key actuarial assumptions for measurement of future
obligations under employee benefit plans - Refer
Note: 30.9

Recent Pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to
time. During the year ended March 31,2026, MCA has notified
the Companies (Indian Accounting Standards) Amendment
Rules, 2025 applicable to the company w.e.f. April 1,2025.

(i) In May 2025, the MCA notified amendments to Ind As 21,
the amendment requires the Effects of Changes in Foreign
Exchange Rates to specify how an entity should assess
whether a currency is exchangeable and how it should
determine a spot exchange rate when exchangeability
is lacking. The amendments also require disclosure of
information that enables users of its financial statements
to understand how the currency not being exchangeable
into the other currency affects, or is expected to affect,
the entity's financial performance, financial position and
cash flows. The amendments are effective for annual
reporting periods beginning on or after April 1, 2025.
When applying the amendments, an entity cannot restate
comparative information. The amendments do not have a
material impact on the financial statements.

In August 2025, MCA notified the following amendments to:

(ii) Ind AS 1, Presentation of Financial Statements, applicable
w.e.f. April 1, 2025 - The amendment relates to

classification of liabilities as current or noncurrent and
non-current liabilities with covenants. In the context of
classifying liability as current, it removes the requirement
of existence of a right to defer settlement for at least 12
months after the reporting date and instead requires that
the said right should exist on the reporting date and have
substance. The amendment also introduces guidance on
classification of liabilities with covenants. The Company
has reviewed the amendment and based on its evaluation
has determined that it has no impact on its financial
statements.

(iii) Ind AS 7, Statement of Cash Flows and Ind AS 107,
Financial Instruments: Disclosures, applicable w.e.f. April
1, 2025 - Disclosures to clarify the characteristics of
supplier finance arrangements and require additional
disclosure of such arrangements. The disclosure
requirements in the amendments are intended to assist
users of financial statements in understanding the effects
of supplier finance arrangements on an entity's liabilities,
cash flows and exposure to liquidity risk. During the year,
the company has not entered into any supplier finance
arrangements. Hence, the amendment does not have any
impact on the financial statements.

(iv) Ind AS 12, International Tax Reform - Pillar Two Model
Rules applicable immediately - The amendments provide a
temporary mandatory relief from deferred tax accounting
for top-up tax and disclose that they have applied the
relief. This relief is immediate and applies retrospectively.

2.3 Property, Plant and Equipment

Property, Plant and Equipment are stated at cost, net of
recoverable taxes, trade discount and rebates less accumulated
depreciation and impairment losses, if any.

Increase/Decrease in rupee liability in respect of foreign
currency liability related to acquisition of Property, Plant and
Equipment is added to the cost of the asset.

Such cost includes purchase price, borrowing cost and any
cost directly attributable to bringing the assets to its working
condition for its intended use.

Spare parts, stand-by equipment and servicing equipment
are recognised when they meet the definition of property,
plant and equipment. Otherwise, such items are classified as
inventory.

Subsequent costs are included in the asset's carrying amount
or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with
the item will flow to the entity and the cost can be measured
reliably.

Expenses incurred relating to project, net of income earned
during the project development stage prior to its intended use,
are considered as pre-operative expenses and disclosed under
Capital Work-in-Progress.

Property, plant and equipment represent a significant
proportion of the asset base of the Company. Depreciation on
Property, Plant and Equipment is provided using Straight Line
Method (SLM) over the estimated useful life.

The useful lives and residual values of company's assets are
determined by management at the time the asset is acquired
and reviewed periodically, including at each financial year end
with the effect of any changes in estimate accounted for on a
prospective basis. The lives are based on historical experience
with similar assets as well as anticipation of future events, which
may impact their life, such as changes in technology.

The useful lives as given above best represent the period over
which the management expects to use these assets, based
on technical assessment. The estimated useful lives for these
assets are therefore different from the useful lives prescribed
under Part C of Schedule II of the Companies Act 2013.

An item of property, plant and equipment is derecognised
upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Gains or
losses arising from derecognition of an item of property, plant
and equipment, measured as the difference between the net
disposal proceeds and the carrying amount of the asset, are
recognised in profit or loss when the asset is de-recognised.

For transition to Ind AS, the company has elected to continue
with the carrying value of all of its property, plant and equipment
recognised as of April 1,2015 (transition date) measured as per
the previous GAAP and use that carrying value as its deemed
cost as of the transition date.

2.4 Intangible assets

Intangible assets with finite useful lives that are acquired
separately are carried at cost less accumulated amortisation
and accumulated impairment losses.

Intangible assets with indefinite useful lives that are
acquired separately are carried at cost less accumulated
impairment losses.

The useful life of company's assets are determined by
management at the time the asset is acquired and reviewed
periodically, including at each financial year end with the effect
of any changes in estimate accounted for on a prospective basis.
The lives are based on historical experience with similar assets
as well as anticipation of future events, which may impact their
life, such as changes in technology.

The useful lives as given above best represent the period over
which the management expects to use these assets, based
on technical assessment. The estimated useful lives for these
assets are therefore different from the useful lives prescribed
under Part C of Schedule II of the Companies Act 2013.

An intangible asset is derecognised upon disposal or when no
future economic benefits are expected to arise.

Gains or losses arising from derecognition of an intangible
asset, measured as the difference between the net disposal
proceeds and the carrying amount of the asset, are recognised
in profit or loss when the asset is derecognised.

For transition to Ind AS, the company has elected to continue
with the carrying value of all of its intangible assets recognised
as of April 1,2015 (transition date) measured as per the previous
GAAP and use that carrying value as its deemed cost as of the
transition date.

2.5 Investment Property

Investment properties are properties held to earn rentals and / or
for capital appreciation (including property under construction
for such purposes). Investment properties are measured initially
at cost, including transaction costs. Subsequent to initial
recognition, investment properties are measured in accordance
with Ind AS 16's requirements for cost model.

Investment properties are depreciated using the straight-line
method over their estimated useful lives. The useful life has
been determined based on technical evaluation performed by
the management's expert.

An investment property is derecognised upon disposal or
when the investment property is permanently withdrawn
from use and no future economic benefits are expected from
the disposal. Any gain or loss arising on derecognition of the
investment property is recognised in profit or loss in the period
of disposal.

2.6 Impairment of assets

Property, Plant and Equipment or Intangible asset is evaluated
for recoverability whenever events or changes in circumstances
indicate that their carrying amounts may not be recoverable.
For the purpose of impairment testing, the recoverable amount
(i.e. the higher of the fair value less cost to sell and the value-in¬
use) is determined on an individual asset basis unless the asset
does not generate cash flows that are largely independent of
those from other assets. In such cases, the recoverable amount
is determined for the CGU to which the asset belongs. If such
assets are considered to be impaired, the impairment has to be
recognised in the Statement of Profit and Loss.

An impairment loss is reversed in the Statement of Profit
and Loss if there has been a change in the estimates used to
determine the recoverable amount. The carrying amount of the
asset is increased to its revised recoverable amount, provided
that this amount does not exceed the carrying amount
that would have been determined (net of any accumulated
amortisation) had no impairment loss been recognised for the
asset in prior years.

2.7 Financial Instruments
Financial Asset

Initial recognition

The Company recognises financial assets when it becomes
a party to the contractual provisions of the instrument. All
financial assets are recognised at fair value on initial recognition,
except for trade receivables which are initially measured at
transaction price.

Transaction costs that are directly attributable to the acquisition
of financial assets (except for financial assets carried at fair value
through profit or loss) are added to the fair value of the financial
assets on initial recognition. Transaction costs of financial assets
carried at fair value through profit or loss are expensed in profit
or loss.

Regular way purchase and sale of financial assets are accounted
for at trade date.

Subsequent measurement

(i) Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised
cost if it is held within a business model whose objective is
to hold the asset in order to collect contractual cash flows
and the contractual terms of the financial asset give rise
on specified dates to cash flows that are solely payments
of principal and interest on the principal amount
outstanding.

(ii) Financial assets carried at fair value through other
comprehensive income (FVTOCI)

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 FVTOCI. All fair value changes are
recognised in the Other Comprehensive Income except
for the recognition of impairment gains or losses, interest
income and foreign exchange gains and losses which are
recognised in profit and loss.

(iii) Financial assets carried at fair value through profit or
loss (FVTPL)

Financial assets are measured at FVTPL if it does not meet
the criteria for classification as measured at amortised
cost or at FVTOCI. Movement in Fair value changes are
recognised in the statement of profit and loss.

A financial asset that meets the amortised cost criteria
or debt instruments that meet the FVTOCI criteria may
be designated as at FVTPL upon initial recognition if
such designation eliminates or significantly reduces a
measurement or recognition inconsistency that would
arise from measuring assets or liabilities or recognising
the gains and losses on them on different bases.

Effective Interest Rate Method

The effective interest rate method is a method of
calculating the amortised cost of financial asset and of
allocating interest income over the expected life. The
Company while applying EIR method, generally amortises
any fees, transaction costs and other premiums or
discount that are integral part of the effective interest rate
of a financial instrument.

Income is recognised in the Statement of Profit and Loss
on an effective interest rate basis for financial assets other
than those classified as at FVTPL. EIR is determined at the
initial recognition of the financial asset. EIR is subsequently
updated at every reset, in accordance with the terms of
the respective contract.

Once the terms of financial assets are renegotiated, other
than market driven interest rate movement, any gain/loss
measured using the previous EIR as calculated before the
modification, is recognised in the Statement of Profit and
Loss in period during which such renegotiations occur.

Investments in Equity Instruments

All equity investments other than in subsidiaries, joint
ventures and associates are measured at fair value. Equity
instruments which are held for trading are classified as at
FVTPL. For all other equity instruments, the Company at
initial recognition makes an irrevocable election to classify
it as either FVTOCI or FVTPL. The Company chooses to
make an irrevocable election and designates it as FVTOCI.

An equity investment classified as FVTOCI is initially
measured at fair value plus transaction costs.
Subsequently, it is measured at fair value and, all fair value
changes are recognised in Other Comprehensive Income
(OCI) and accumulated in "Reserve for Equity instruments
through OCI". On disposal of such instruments, the
cumulative gain or loss recognised in OCI is transferred
directly to Retained Earnings / General Reserve and is not
recycled to the Statement of Profit and Loss. However, the
difference between the actual sale proceeds and the fair
value of the instrument at the date of derecognition, if
any, is recognised in the Statement of Profit and Loss.

Investment in subsidiaries, associates and joint
venture

Investment in subsidiaries, associates and joint venture
are measured at cost less provision for impairment.
On disposal of investments in subsidiaries, associates
and joint venture, the difference between net disposal
proceeds and the carrying amounts are recognised in the
Statement of Profit and Loss.

Impairment of financial assets

Trade receivables, contract assets, lease receivables,
investments in debt instruments that are carried at
amortised cost, investments in debt instruments that are
carried at FVTOCI are tested for impairment based on the
expected credit losses for the respective financial asset.

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) throughout 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 period but determines at the end of a reporting
period that the credit risk has not increased significantly
since initial recognition due to improvement in credit
quality as compared to the previous period, 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.

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.

De-recognition of financial assets

The Company derecognises a financial asset when the

contractual rights to the cash flows from the asset expire,
or when it transfers substantially all the risks and rewards
of ownership of the financial asset to another party. If the
Company neither transfers nor retains substantially all the
risks and rewards of ownership and continues to control
the transferred asset, the Company recognises its retained
interest in the asset and an associated liability for amounts
it may have to pay. If the Company retains substantially
all the risks and rewards of ownership of a transferred
financial asset, the Company continues to recognise
the financial asset and also recognises a collateralised
borrowing for the proceeds received.

On derecognition of a financial asset in its entirety,
the difference between the asset's carrying amount
(Measured at the date of derecognition) and the sum
of the consideration received shall be recognised in the
statement of profit and loss account.

Foreign exchange gains and losses

The fair value of financial assets denominated in a
foreign currency is determined in that foreign currency
and translated at the spot rate at the end of each
reporting period.

• For foreign currency denominated financial assets
measured at amortised cost and FVTPL, the exchange
differences are recognised in profit or loss except for
those which are designated as hedging instruments
in a hedging relationship.

• Changes in the carrying amount of investments in
equity instruments at FVTOCI relating to changes
in foreign currency rates are recognised in other
comprehensive income.

• For the purposes of recognising foreign exchange
gains and losses, FVTOCI debt instruments are treated
as financial assets measured at amortised cost. Thus,
the exchange differences on the amortised cost are
recognised in profit or loss and other changes in the
fair value of FVTOCI financial assets are recognised in
other comprehensive income.

2.8 Equity Instruments & Financial Liabilities
Equity Instruments

An equity instrument is any contract that evidences a residual
interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by the entity are recognised
at the proceeds received.

Repurchase of the company's own equity instruments is
recognised and deducted directly in equity.

Financial liabilities
Initial Recognition

The Company recognises financial liabilities when it becomes
a party to the contractual provisions of the instrument.
All financial liabilities are recognised at fair value on initial
recognition, except for trade payables. Transaction costs that
are directly attributable to the acquisition or issue of financial
liabilities, which are not at fair value through profit or loss, are
added to the fair value on initial recognition.

Subsequent Measurement

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 recognised in
the statement of profit or loss.

Financial liabilities at amortised cost

The Company's financial liabilities at amortised cost are initially
recognised 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 amortised cost using the effective interest rate
(EIR) method except for deferred consideration recognised in
a business combination which is subsequently measured at fair
value through profit and loss.

Foreign exchange gains and losses

For financial liabilities that are denominated in a foreign
currency and are measured at amortised cost at the end of
each reporting period, the foreign exchange gains and losses
are determined based on the amortised cost of the instruments
and are recognised in 'Other income/Expense'

The fair value of financial liabilities denominated in a foreign
currency is determined in that foreign currency and translated
at the spot rate at the end of the reporting period. For financial
liabilities that are measured as at FVTPL, the foreign exchange
component forms part of the fair value gains or losses and is
recognised in profit or loss.

Derecognition of financial liabilities

The Company derecognises financial liabilities only when,
the Company's obligations are discharged, cancelled or have
expired. An exchange between a lender of debt instruments
with substantially different terms is accounted for as an

extinguishment of the original financial liability and the
recognition of a new financial liability.

Similarly, a substantial modification of the terms of an existing
financial liability is accounted as derecognition of the original
financial liability and the recognition of a new financial liability.
The difference between the carrying amount of the financial
liability derecognised and the consideration paid and payable
is recognised in profit or loss.

2.9 Valuation of Inventories

Inventories are valued at lower of cost or net realisable value
after providing for obsolescence wherever necessary.

Cost is determined on weighted average basis. Net realisable
value is the estimated selling price in the ordinary course of
business, less estimated costs of completion and estimated
costs necessary to make the sale.

Raw materials and stores, work in progress, traded and finished
goods are stated at the lower of cost and net realisable value.
Cost of raw materials and traded goods comprises cost of
purchases. Cost of work-in-progress and finished goods
comprises direct materials, direct labour and an appropriate
proportion of variable and fixed overhead expenditure, the
latter being allocated on the basis of normal operating capacity.
Cost of inventories also include all other costs incurred in
bringing the inventories to their present location and condition.

Costs are assigned to individual items of inventory on the
basis of first-in first-out basis. Costs of purchased inventory
are determined after deducting rebates and discounts. Net
realisable value is the estimated selling price in the ordinary
course of business less the estimated costs of completion and
the estimated costs necessary to make the sale.

2.10 Translation of Foreign Currency Transactions

In preparing the financial statements of the company,
transactions in currencies other than the entity's functional
currency (foreign currencies) are recognised at the rates of
exchange prevailing at the dates of the transactions. At the
end of each reporting period, monetary items denominated
in foreign currencies are retranslated at the rates prevailing
at that date. Non-monetary items carried at fair value that are
denominated in foreign currencies are retranslated at the rates
prevailing at the date when the fair value was determined. Non¬
monetary items that are measured in terms of historical cost in
a foreign currency are not retranslated.

Exchange differences on monetary items are recognised in
profit or loss in the period in which they arise.

2.11 Recognition of Revenue

The Company identifies the contract with customer once the
parties have approved the contract in writing and committed
to perform the respective performance obligations. Any
addition or alteration of contract shall be binding only if agreed
to in writing. The Company identifies distinct performance
obligations in the contract and recognises revenue as and
when the performance obligation is satisfied by transferring
a promised good or service to a customer. The process
of identifying distinct performance obligations requires
exercising judgment to determine the deliverables and
ability of the customer to benefit independently from such
deliverables. The Company determines the transaction price
which is the consideration that the Company expects to be
entitled in exchange for good or service. The transaction price
is then allocated to each performance obligation and revenue
is recognised.

Sale of Goods: The Company manufactures and sells a range of
Textile Machinery, Machine Tools, Foundry Castings and Aero¬
space components. Revenue is recognised when control is
transferred to the customer upon despatch or delivery of goods,
based on the terms of contract.

The Company's obligation to replace faulty products under standard
warranty terms is recognised as a provision (Refer Note. 19)

Rendering of Services: The Company renders services that
include installation, maintenance, and other ancillary services.
Revenue from services is recognised over a period of time as
and when the services are rendered in accordance with the
specific terms of contract with customer.

Export Incentive and Carbon Credit: Export incentives
are recognised when the right to receive payment/credit is
established and no significant uncertainty as to measurability
or collectability exists. Revenue from carbon credits / REC
entitlements are recognised on delivery thereof or sale of rights
therein, as the case may be, in terms of the contract with the
respective buyer.

Royalty: Royalty revenue is recognised on an accrual basis
in accordance with the substance of the relevant agreement
provided that it is probable that the economic benefits will flow
to the company and the amount of revenue can be measured
reliably. Royalty arrangements that are based on production,
sales and other measures are recognised by reference to the
underlying arrangement.

Dividend Income: Dividend income from investments is
recognised when the shareholder's right to receive payment has
been established provided if it is probable that the economic
benefits will flow to the company and the amount of income
can be measured reliably.

Interest Income: Interest income is accrued on a timely
basis, reference to principal outstanding and at the effective
interest rate applicable, which is the rate that exactly discounts
estimated future cash receipts through the expected life of the
financial asset to that asset's net carrying amount on initial
recognition.

Rental Income: Rental Income is recognised on accrual basis
in accordance with terms and conditions of respective rental
agreements.

Income from Wind Energy: Revenue from power supply is
recognised in terms of power purchase agreement entered
with state distribution companies and is measured at the value
of consideration received or receivable, net of discounts if any.

2.12 Borrowing costs

General and specific borrowing costs that are directly
attributable to the acquisition, construction or production of a
qualifying asset are capitalised as part of the cost of respective
assets during the period of time that is required to complete
and prepare the asset for its intended use. Qualifying assets are
assets that necessarily take a substantial period of time to get
ready for their intended use or sale. Other borrowing costs are
expensed in the period in which they are incurred.

2.13 Dividends

Final dividend on shares are recorded as a liability on the date
of approval by the shareholders at the annual general meeting
and interim dividend are recorded as a liability on the date of
declaration by the Company's Board of Directors.

2.14 Earnings per Share

Basic earnings per share is computed by dividing the profit or
loss after tax by the weighted average number of equity shares
outstanding during the year including potential equity shares
on compulsory convertible debentures. Diluted earnings per
share is computed by dividing the profit / (loss) after tax as
adjusted for dividend, interest and other charges to expense or
income (net of any attributable taxes) relating to the dilutive
potential equity shares, by the weighted average number of
equity shares considered for deriving basic earnings per share.

2.15 Employee Benefits
Short term employee benefits

A liability is recognised for benefits accruing to employees in
respect of wages and salaries, annual leave and sick leave in
the period the related service is rendered at the undiscounted
amount of the benefits expected to be paid in exchange for
that service. Liabilities recognised in respect of short-term
employee benefits are measured at the undiscounted amount
of the benefits expected to be paid in exchange for the related
service.

Defined Contribution Plans

Payments to defined contribution retirement benefit plans
are recognised as an expense when employees have rendered
service entitling them to the contributions.

Defined Benefit Plans

For defined retirement benefit plans, the cost of providing
benefits is determined using the projected unit credit method
which considers each period of service as giving rise to an
additional unit of benefit entitlement and measures each
unit separately to build up the final obligation, with actuarial
valuations being carried out at the end of each annual
reporting period. Remeasurement, comprising actuarial
gains and losses, the effect of changes to the asset ceiling
(if applicable) and the return on plan assets (excluding net
interest), is reflected immediately in the balance sheet with a
charge or credit recognised in other comprehensive income
in the period in which they occur. Remeasurement recognised
in other comprehensive income is reflected immediately in
retained earnings and is not re classified to profit or loss. Past
services cost is recognised in profit or loss in the period of plan
amendment. Net interest is calculated by applying the discount
rate at the beginning of the period to the net defined benefit
liability or asset. Defined benefit costs are categorised as service
cost (including current service cost, past service cost, as well as
gains and losses on curtailments and settlements); net interest
expense or income and remeasurement. The company presents
the first two components of defined benefit costs in profit or
loss in the line item 'Employee benefits expense' Curtailment
gains and losses are accounted for as past service costs. The
retirement benefit obligation recognised in the balance sheet
represents the actual deficit or surplus in the company's defined
benefit plans. Any surplus resulting from this calculation is
limited to the present value of any economic benefits available
in the form of refunds from plans or reductions in future
contributions to the plans.

A liability for a termination benefit is recognised at the earlier
of when the entity can no longer withdraw the offer of the
termination benefit and when the entity recognises any related
restructuring costs.

2.16 Research and Development

Revenue expenditure pertaining to research is charged to the
Statement of Profit and Loss. Development costs are capitalised
as an intangible asset if it can be demonstrated that the project
is expected to generate future economic benefits; it is probable
that those future economic benefits will flow to the entity and
the costs of the asset can be measured reliably, else it is charged
to the Statement of Profit and Loss.

2.17 Taxes on Income

Income tax expense comprises current and deferred income tax.
Current Tax

Current income tax for current and prior periods is recognised
at the amount expected to be paid to or recovered from the
tax authorities, using the tax rates and tax laws that have been
enacted or substantively enacted by the end of the reporting
date. The company offsets current tax assets and current tax
liabilities, where it has a legally enforceable right to set off
the recognised amounts and where it intends either to settle
on a net basis, or to realise the asset and settle the liability
simultaneously. The income tax provision for the interim period
is made based on the best estimate of the annual average tax
rate expected to be applicable for the full financial year.

Deferred Tax

Deferred tax is recognised on temporary differences between
the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities are
generally recognised for all taxable temporary differences.
Deferred tax assets are generally recognised for all deductible
temporary differences to the extent that it is probable that
taxable profits will be available against which those deductible
temporary differences can be utilised. Such deferred tax assets
and liabilities are not recognised if the temporary difference
arises from the initial recognition (other than in a business
combination) of assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit. In addition,
deferred tax liabilities are not recognised if the temporary
difference arises from the initial recognition of goodwill.

The carrying amount of deferred tax assets / liabilities is
reviewed at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient taxable
profits will be available to allow all or part of the asset to be
recovered.

Deferred tax liabilities and assets are measured at the tax rates
that are expected to apply in the period in which the liability is
settled or the asset realised, based on tax rates (and tax laws)
that have been enacted or substantively enacted by the end of
the reporting period.

The measurement of deferred tax liabilities and assets reflects
the tax consequences that would follow from the manner
in which the company expects, at the end of the reporting
period, to recover or settle the carrying amount of its assets and
liabilities.

Current and Deferred Tax for the year

Current and deferred tax are recognised in profit or loss,
except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case,