B. Material Accounting policies
I. Basis of preparation and presentation and Statement of compliance:
These standalone Financial Statements have been prepared in accordance with Indian Accounting
Standards (referred to as "Ind AS") as prescribed under Section 133 of the Companies Act, 2013 (Act) read
with Companies (Indian Accounting Standards) Rules 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. The Financial Statements have been
prepared under historical cost convention basis except for certain financial assets and financial liabilities
which have been measured at fair value. 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. All assets and liabilities have been classified as current and non-current as per the
Company's normal operating cycle. Based on the nature of services rendered to customers and time
elapsed between deployment of resources and the realization in cash and cash equivalents of the
consideration for such services rendered, the Company has considered an operating cycle of 12 months.
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 Financial Statements have been presented in Indian Rupees (INR), which is the Company's
functional currency. All values are rounded to the Lakhs except otherwise stated. All financial information
presented in INR has been rounded off to the nearest two decimals, unless otherwise stated.
II. Summary of Material Accounting Policies
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 classified as current when it satisfies any of the following criteria: it is
expected to be realized in, or is intended for sale or consumption in, the Company's normal operating
cycle.
It is held primarily for the purpose of being traded non-Current;
• It is expected to be realized within 12 months after the reporting date; or
• It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a
liability for at least 12 months after the reporting date.
• All other assets are classified as non-current.
It is held primarily for the purpose of being traded Current
• A liability is classified as current when it satisfies any of the following criteria:
• It is expected to be settled in the Company's normal operating cycle;
• It is held primarily for the purpose of being traded
• It is due to be settled within 12 months after the reporting date; or the Company does not
have an unconditional right to defer settlement of the liability for at least 12 months after the
reporting date. Terms of a liability that could, at the option of the counterparty, result in its
settlement by the issue of equity instruments do not affect its classification.
• All other liabilities are classified as non-current.
• Deferred tax assets and liabilities are classified as non-current only
• The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies
(Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.
• 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.
b) 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. In case of land the Company has availed historical cost as deemed
cost on the date of transition to Ind AS.
Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to
the company and the cost of the item can be measured reliably. The carrying amount of any component
accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are
charged to profit or loss during the reporting period in which they are incurred.
An item of spare parts that meets the definition of 'property, plant and equipment' is recognized as
property, plant and equipment.
Capital work in progress is stated at cost and net of accumulated impairment losses, if any. All the direct
expenditure related to implementation including incidental expenditure incurred during the period of
implementation of a project, till it is commissioned, is accounted as Capital work in progress (CWIP) and
after commissioning the same is transferred / allocated to the respective item of property, plant and
equipment. 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.
Pre-operating costs, being indirect in nature, are expensed to the statement of profit and loss as and
when incurred.
The present value of the expected cost for the decommissioning of an asset after its use is included in
the cost of the respective asset if the recognition criteria for a provision are met.
Property, plant and equipment are eliminated from financial statement, either on disposal or when
retired from active use. Losses arising in the case of retirement of property, plant and equipment are
recognized in the statement of profit and loss in the year of occurrence.
Depreciation on Property, Plant and Equipment is provided using written down value method on
depreciable amount. The depreciation on an item of spare part will begin when the asset is available for
use i.e. when it is in the location and condition necessary for it to be capable of operating in the manner
intended by management. In case of a spare part, as it may be readily available for use, it may be
depreciated from the date of purchase of the spare part. However, land is not depreciated. Depreciation
is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013
except in respect of the following assets, where useful life is as under:
Depreciation on additions is calculated on pro rata basis with reference to the date of addition.
Depreciation on assets sold/ discarded, during the period, has been provided up to the preceding month
of sale / discarded. The residual values, useful lives and methods of depreciation of Property, Plant and
Equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. Gains and
losses on disposals are determined by comparing proceeds with carrying amount. These are included in
profit or loss within other gains / (losses).
c) Intangible Asset:
Intangible assets are recognized when it is probable that the future economic benefits that are
attributable to the assets will flow to the company and the cost of the asset can be measured reliably.
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible
assets acquired in a business combination is their fair value at the date of acquisition. Following initial
recognition, intangible assets are carried at cost less any accumulated amortization and accumulated
impairment losses. Internally generated intangibles, excluding capitalized development costs, are not
capitalized and the related expenditure is reflected in profit or loss in the period in which the
expenditure is incurred.
The Company assesses if useful life of an intangible asset is finite or indefinite.
d) Inventories
Items of inventories are measured at lower of cost and net realisable value after providing for
obsolescence, if any. Cost of finished goods, work-in-progress, raw materials, stores and spares, packing
materials, trading and other products are determined on first in, first out basis. Net realizable value is the
estimated selling price in the ordinary course of business, less estimated costs of completion and the
estimated costs necessary to make the sale.
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