1 MATERIAL ACCOUNTING POLICIES

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

1.1 Basis of Preparation and Presentation

a) Compliance with Ind AS

The Financial Statements of the Company have been prepared to comply with the Indian Accounting standards ('Ind
AS'), including the Rules notified under the relevant provisions of the Companies Act, 2013, (as amended from time
to time) and Presentation and disclosure requirements of Division II of Schedule III to the Companies Act, 2013, (Ind
AS Compliant Schedule III) as amended from time to time. The Company follows indirect method prescribed in Ind AS
7 - Statement of Cash Flows for presentation of its cash flows.

b) Historical cost convention

The financial statements have been prepared on an accrual and going concern basis. The Financial statements have
been prepared on a historical cost basis, except for the following items:

c) Current and non-current classification

The Company presents assets and liabilities in the Balance Sheet based on Current/ Non-Current classification
considering an operating cycle of 12 months being the time elapsed between deployment of resources and the
realisation/settlement in cash and cash equivalents there against.

d) Functional currency

The Company's Financial Statements are presented in Indian Rupees (Rs), which is also its functional currency and all
values are rounded to the nearest lakhs (Rs 00,000), except when otherwise indicated.

! New and amended standards adopted by the Company

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 Ministry of Corporate Affairs vide notification dated 9 September 2024 and 28 September 2024 notified the Companies
(Indian Accounting Standards) Second Amendment Rules, 2024 and Companies (Indian Accounting Standards) Third
Amendment Rules, 2024, respectively, which amended/ notified certain accounting standards (see below), and are effective
for annual reporting periods beginning on or after 1 April 2024:

• Insurance contracts - Ind AS 117; and

• Lease Liability in Sale and Leaseback - Amendments to Ind AS 116

These amendments did not have any material impact on the amounts recognised in prior periods and are not expected to
significantly affect the current or future periods.

3 Summary of Material Accounting Policies

3.01 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. Such cost includes purchase price, borrowing cost and any cost directly
attributable to bringing the assets to its working condition for its intended use, net charges on foreign exchange contracts
and adjustments arising from exchange rate variations attributable to the assets.

Other Indirect 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 (CWIP). CWIP
comprises amount paid towards acquisition of property, plant and equipment outstanding as of each balance sheet date
and construction expenditures, other expenditures necessary for the purpose of preparing the CWIP for its intended use
and borrowing cost incurred before the qualifying asset is ready for intended use. CWIP is not depreciated until such time
as the relevant asset is completed and ready for its intended use.

Overhaul expenditure relating to property, plant and equipment re recognized in the Statement of Profit and Loss when
incurred and are capitalized only when it is probable that future economic benefits associated with these will flow to the
Company and the cost of the item can be measured reliably.

Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is
classified as 'capital advances' under other non-current assets.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Gains and losses on disposals are determined by comparing
proceeds with carrying amount. These are included in profit or loss within other expenses or other income or other
expenses, as applicable.

3.02 Depreciation methods, estimated useful lives and residual value

Freehold land is not depreciated. Leasehold improvements and lease hold land are amortized over the shorter of estimated
useful life or the related lease term. Depreciation is calculated using the straight-line method to allocate the cost of the
assets, net of their residual values, over their estimated useful lives as follows:

Major overhaul costs are depreciated over the estimated life of the economic benefit derived from the overhaul.

Estimated useful lives, residual values and depreciation methods are reviewed annually, taking into account commercial
and technological obsolescence as well as normal wear and tear and adjusted prospectively, if appropriate.

3.03 Leases:

The Company, as a lessee, recognises a rightof-use asset and a lease liability for its leasing arrangements, if the contract
conveys the right to control the use of an identified asset.

Initially the right of use assets measured at cost which comprises initial cost of the lease liability adjusted for any lease
payments made at or before the commencement date plus any initial direct costs incurred. Subsequently measured
at cost less any accumulated depreciation/amortisation, accumulated impairment losses, if any and adjusted for any
remeasurement of the lease liability.

The right-of-use assets is depreciated/ amortised using the straight-line method from the commencement date over the
shorter of lease term or useful life of right-of-use asset.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement
date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily
determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate.

For short-term and low value leases, the Company recognises the lease payments as an operating expense on a straight¬
line basis over the lease term.

3.04 Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes, trade discount and rebates less accumulated
amortisation/depletion and impairment losses, if any. Such cost includes purchase price, borrowing costs, and any cost
directly attributable to bringing the asset to its working condition for the intended use, net charges on foreign exchange
contracts and adjustments arising from exchange rate variations attributable to the Intangible Assets.

Other Indirect 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 Intangible Assets Under Development.

The Company assesses if useful life of an intangible asset is finite or indefinite. A summary of amortisation/depletion
policies applied to the Company's Intangible Assets to the extent of depreciable amount is as follows:

Estimated useful lives and amortisation/depletion period are reviewed annually, taking into account commercial and
technological obsolescence as well as normal wear and tear and adjusted prospectively, if appropriate.

3.05 Impairment of Non-Financial Assets

Property, plant and equipment and Intangible assets and are 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 Cash Generating Unit (CGU) to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the statement of profit and loss is
measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the
asset. 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 amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

3.06 Valuation of Inventories

Raw materials, stores and spares, work in progress, traded goods, acquired scrap and finished goods are stated at the
lower of cost and net realizable value. Cost of raw materials, traded goods and acquired scrap comprises cost of purchases
is computed on first in first out (FIFO) method.

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 includes all other costs incurred in bringing the inventories to their present location and condition.
Costs of purchased inventory are determined after deducting rebates and discounts.

Finished goods are valued at cost or net realisable value whichever is less. Net realizable 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.

Other stores and spares/consumable are valued at cost after providing for cost of obsolescence, if any.

3.07 Income tax and deferred tax

The Income tax expense or credit for the year is the tax payable on the current year's taxable income based on the
applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences
and to unused tax losses.

a) Current income tax

Current tax charge is based on taxable profit for the year. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the reporting date where the Company operates and generates
taxable income. The management periodically evaluates positions taken in tax returns with respect to situations in which
applicable tax regulation is subject to interpretation and considers whether it is probable that the taxation authority will
accept an uncertain tax treatment. It establishes provisions where appropriate on the basis of amounts expected to be
paid to the tax authorities. Current tax assets and tax liabilities are offset where the Company has a legally enforceable
right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

b) Deferred tax

Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the financial statements. Deferred tax is determined using tax rates (and laws)
that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when
the related deferred tax assets is realized or deferred tax liability is settled. Deferred tax are recognized for all deductible
temporary difference and unused tax losses only if it is probable that future taxable amounts will be available to utilize
those temporary differences and losses.

Deferred income tax is not accounted for if it arises 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 profit nor taxable profit (tax
loss).

The carrying amount of deferred tax assets is reviewed at each reporting date and adjusted to reflect changes in probability
that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred 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 has a legally enforceable right to set-off the current income tax assets and liabilities, and (b) the
deferred income tax assets and liabilities relate to income tax levied by the same taxation authority.

Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other
comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or
directly in equity, respectively

3.08 Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.

A Financial assets

(i) 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.

For assets measured at fair value, gains and losses will either be recorded in profit or 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 the 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 (excluding trade receivables) 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. However, trade receivables do not contain significant
financing component are measured at transaction price.

After initial recognition, financial assets not measured at fair value through profit & Loss are measured using
effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash
flow through the expected life of the financial asset, or, where appropriate, a shorter period, to the net carrying
amount on initial recognition. Transaction costs of financial assets carried at fair value through profit or loss are
expensed in profit or loss.

(a) Debt instruments

Subsequent measurement of debt instruments depends on the Company's business model for managing
the asset and the cash flow characteristics of the asset. There are three measurement categories into which
the Company classifies its debt instruments:

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 amortized cost. A gain or loss on a debt
investment that is subsequently measured at amortized cost and is not part of a hedging relationship is
recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial
assets is included in other income using the effective interest rate method.

Fair value through other comprehensive income (FVOCI): 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 fair value through other comprehensive income (FVOCI). Movements
in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses,
interest income and foreign exchange gains and losses which are recognized in profit and loss. When the

financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from
equity to profit or loss and recognized in other income or other expenses (as applicable). Interest income
from these financial assets is included in other income using the effective interest rate method.

Fair value through profit or loss (FVTPL): Assets that do not meet the criteria for amortized cost or FVOCI
are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently
measured at fair value through profit or loss and is not part of a hedging relationship is recognized in profit
or loss and presented net in the statement of profit and loss within other income or other expenses (as
applicable) in the period in which it arises. Interest income from these financial assets is included in other
income.

(b) Equity instruments

The Company subsequently measures all equity investments at fair value. Where the Company's management
has elected to present fair value gains and losses on equity investments in other comprehensive income
and there is no subsequent reclassification of fair value gains and losses to profit or loss. Dividends from
such investments and gain/ loss on restatement of equity shares held in foreign currency are recognized in
profit or loss as other income when the Company's right to receive payments is established.

Changes in the fair value of financial assets at fair value through profit or loss are recognized in other
income or other expenses, as applicable in the statement of profit and loss. Impairment losses (and reversal
of impairment losses) on equity investments measured at FVOCI are not reported separately from other
changes in fair value.

(c) Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets
carried at amortized cost and FVOCI debt instruments. The impairment methodology applied depends on
whether there has been a significant increase in credit risk.

For trade receivables and contract assets, the Company applies the simplified approach permitted by Ind AS
109 Financial Instruments, which requires expected lifetime losses to be recognized from initial recognition
of the receivables.

(d) Derecognition of financial assets

A financial asset is derecognized only when

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

• Retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual
obligation to pay the 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,
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.

(e) Income recognition

(i) Interest income

Interest income from a financial assets is recognized when it is probable that the economic benefits
will flow to the Company and the amount of income can be measured reliably. Interest income is
accrued on time basis by reference to principal outstanding and 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 the gross carrying amount of a financial asset. When calculating the effective
interest rate, the Company estimates the expected cash flows by considering all the contractual terms
of the financial instrument (for example, prepayment, extension, call and similar options) but does not
consider the expected credit losses.

Interest on income tax and indirect tax are recognized in the year in which it is received.

(ii) Dividend income

Dividend income are recognized in profit or loss only when the right to receive payment is established,
it is probable that the economic benefits associated with the dividend will flow to the Company and
the amount of the dividend can be measured reliably.

(iii) Export Benefits

In case of sale made by the Company as Support Manufacturer, export benefits arising from Duty
Entitlement Pass Book (DEPB), Remission of Duties and Taxes on Export Products ("RoDTEP") and Duty
Drawback scheme are recognized on export of such goods in accordance with the agreed terms and
conditions with customers. In case of direct exports made by the Company, export benefits arising
from DEPB, Duty Drawback scheme and RoDTEP are recognized on shipment of direct exports.

(iv) Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, short-term deposits with an original
maturity of three months or less and short term highly liquid investments that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of changes in value.

(v) Trade receivable

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary
course of business and reflects Company's unconditional right to consideration (that is, payment is
due only on the passage of time). Trade receivables are recognized initially at the transaction price as
they do not contain significant financing components. The Company holds the trade receivables with
the objective of collecting the contractual cash flows and therefore measures them subsequently at
amortized cost using the effective interest method, less loss allowance.

B Financial liabilities

(i) Measurement

Financial liabilities are initially recognized at fair value, reduced by transaction costs (in case of financial liability
not at fair value through profit or loss), that are directly attributable to the issue of financial liability. After initial
recognition, financial liabilities are measured at amortized cost using effective interest method. The effective
interest rate is the rate that exactly discounts estimated future cash outflow (including all fees paid, transaction
cost, and other premiums or discounts) through the expected life of the financial liability, or, where appropriate, a
shorter period, to the net carrying amount on initial recognition. At the time of initial recognition, there is no financial
liability irrevocably designated as measured at fair value through profit or loss.

(ii) Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,

or the terms of an existing liability are substantially modified, such an exchange or modification is treated as
the de-recognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognized in the statement of profit or loss.

(iii) Borrowings

Borrowings are initially recognized at fair value, net of transaction costs 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 of 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 of the facility will be drawn
down, the fee is capitalized as a 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 a 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 profit and loss as other income or other expenses, as applicable.

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
instruments issued.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement
of the liability for at least 12 months after the reporting period. Where there is a breach of a material provision
of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability
becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the
lender agreed, after the reporting period and before the approval of the standalone financial statements for
issue, not to demand payment as a consequence of the breach.

(iv) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year
which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12
months after the reporting period. Trade and other payables are recognized, initially at fair value, and subsequently
measured at amortized cost using effective interest rate method.

Trade payables includes acceptances arrangements where operational suppliers of goods are paid by banks
while the Company continues to recognize the liability till settlement with the banks.

C Financial guarantee contracts

Financial guarantee contracts are recognized as a financial liability at the time the guarantee is issued. The liability is
initially measured at fair value and subsequently at the higher of the amount determined in accordance with Ind AS
37 and amount initially recognized less cumulative amortization, where appropriate. The fair value of guarantee is
determined as at the present value of difference in net cash flows between the contractual payments under the debt
instrument and the payment that would be required.

Without the guarantee, or the estimated amount that would be payable to a third party for assuming the obligation.
Where guarantee in relation to loan or other payables of group companies are provided for no consideration, the fair
values are accounted for as contributions and recognized as part of the cost of investment.

D Derivatives and hedging activities

In order to hedge its exposure to foreign exchange and interest rate, the Company enters into forward and interest
rate swap contracts and other derivative financial instruments. The Company does not hold derivative financial
instruments for speculative purposes.

Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently
re-measured to their fair value at the end of each reporting period.

The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging
instrument, and if so, the nature of the item being hedged and the type of hedge relationship designated.

The Company designates their derivatives as hedges of foreign exchange risk associated with the cash flows of highly
probable forecast transactions and variable interest rate risk associated with borrowings (cash flow hedges).

The Company documents at the inception of the hedging transaction the economic relationship between hedging
instruments and hedged items including whether the hedging instrument is expected to offset changes in cash
flows of hedged items. The Company documents its risk management objective and strategy for undertaking various
hedge transactions at the inception of each hedge relationship.

The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity
of the hedged item is more than 12 months; it is classified as a current asset or liability when the remaining maturity
of the hedged item is less than 12 months.

(i) Cash flow hedges that qualify for hedge accounting

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow
hedges is recognized in the other comprehensive income in cash flow hedging reserve within equity, limited
to the cumulative change in fair value of the hedged item on a present value basis from the inception of the
hedge. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss, within other
income or other expenses (as applicable).

When forward contracts are used to hedge forecast transactions, the Company generally designates the full
change in fair value of the forward contract (including forward points) as the hedging instrument. In such cases,
the gains and losses relating to the effective portion of the change in fair value of the entire forward contract are
recognized in the cash flow hedging reserve within equity.

Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects
profit or loss.

Where the hedged item subsequently results in the recognition of a non-financial asset (such as inventory), both
the deferred hedging gains and losses and the deferred time value of the deferred forward contracts, if any are
included within the initial cost of the asset.

When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for
hedge accounting, any cumulative deferred gain or loss in equity at that time remains in equity until the forecast
transaction occurs. When the forecast transaction is no longer expected to occur, the cumulative gain or loss
that was reported in equity is immediately reclassified to profit or loss within other income or other expense
(as applicable). If the hedge ratio for risk management purposes is no longer optimal but the risk management
objective remains unchanged and the hedge continues to qualify for hedge accounting, the hedge relationship
will be rebalanced by adjusting either the volume of the hedging instrument or the volume of the hedged item
so that the hedge ratio aligns with the ratio used for risk management purposes. Any hedge ineffectiveness is
calculated and accounted for in statement of profit or loss at the time of the hedge relationship rebalancing.

(ii) Derivatives that are not designated as hedges

The Company enters into derivative contracts to hedge risks which are not designated as hedges. Such contracts
are accounted for at fair value through profit or loss and are included in other income or other expenses (as
applicable).

E Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally
enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the
asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events

and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of
the Company or the counterparty.

3.09 Sale of Goods and Services

The Company derives revenue principally from sale of pipes and steel products and related freight services.

The Company recognizes revenue excluding amounts collected on behalf of third parties (for example taxes and duties
collected on behalf of the government) when it satisfies a performance obligation in accordance with the provisions of
contract with the customer. This is achieved when control of the product has been transferred to the customer, which is
generally determined when title, ownership, risk of obsolescence and loss pass to the customer and the Company has the
present right to payment, all of which occurs at a point in time upon shipment or delivery of the product.

In certain customer contracts, the Company considers freight activities as costs to fulfil the promise to transfer the related
products and the payments by the customers for freight costs are recorded as a component of revenue and are treated as
a distinct separate performance obligation. The Company recognizes revenue for such freight activities services when the
performance obligation is completed.

A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional
because only the passage of time is required before the payment is due.

The Company considers the terms of the contract in determining the transaction price. The transaction price is based
upon the amount the Company expects to be entitled to in exchange for transferring of promised goods and services to
the customer after deducting incentive programs, included but not limited to discounts, volume, rebates, etc.

Revenue is recognized at a determined transaction price when identified performance obligations are satisfied. The bill
and hold contracts are entered at the request of the customer.

Revenue from bill and hold contracts is recognized at the agreed transaction price (determined price). The price for bill
and hold contracts is determined at the time of entering into the transaction and the performance obligation is satisfied
when goods have been appropriated towards the sale transaction (the control of asset is transferred to the customer and
other conditions are satisfied in accordance with Ind AS 115).

The Company's payment terms range from 0 to 60 days from date of delivery, depending on the market and product sold.

3.10 Government Grants

Government grants are recognised where there is reasonable assurance that the grant will be received, and all attached
conditions will be complied with.

Where the grant relates to an asset the cost of the asset is shown at gross value and grant thereon is treated as capital grant
which is recognised as income in the statement of profit and loss over the period and in proportion in which depreciation
is charged.

Revenue grants are recognised in the statement of profit and loss in the same period as the related cost which they are
intended to compensate are accounted for.

Where the company receives non-monetary grants, the asset and the grant are recorded gross at nominal amounts and
released to the statement of profit and loss over the expected useful life and pattern of consumption of the benefit of the
underlying asset by equal annual instalments.

3.11 Investment in subsidiaries, joint ventures and associate

The investments in subsidiaries, joint ventures and associate are carried in the standalone financial statements at historical
cost with effect of foreign exchange gain or loss due to foreign curreny fluctuation at the reporting date. The exchange
difference arising on translation of equity investments in case of foreign subsidiaries is recognised as gain or loss under
other comprehensive income.

When the investment, or a portion thereof, is classified as held for sale, it is accounted for as Non-current assets held for
sale and discontinued operations.

When the Company is committed to a sale plan involving disposal of an investment, or a portion of an investment, in any
subsidiary or joint venture, the investment or the portion of the investment that will be disposed of is classified as held for
sale when the criteria described above are met. Any retained portion of an investment in a subsidiary or a joint venture
that has not been classified as held for sale continues to be accounted for at historical cost.

3.12 Foreign currencies transactions and translation.

i) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the
transaction or that approximates the actual rate at the date of the transaction.

ii) Monetary items denominated in foreign currencies at the year end are restated at year end rates.

iii) In respect of forward exchange contract entered for speculation purpose and expired during the year, the difference
in forward exchange booking rate and spot rate on the date of expiry of contract is dealt in the profit and loss account.
In respect of forward exchange contract entered for speculative purpose and carried forward in next accounting
period, the difference between the forward exchange booking rate and closing interbank rate including premium
upto maturity prevailing at the close of the year are dealt in the profit and loss account.

iv) In respect of branches, which are non-integral foreign operations, all transactions are translated at rates prevailing on
the date of transaction or that approximates the actual rate at the date of transaction. Branch monetary assets and
liabilities are restated at the year-end rates. The exchange difference arising on translation are recognised in other
comprehensive income (OCI).

v) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the
statement of profit and loss.