a) Property, Plant and Equipment

Property, Plant and Equipment (PPE) are stated at
cost of acquisition, including any attributable cost
for bringing the asset to its working condition for
its intended use less accumulated depreciation
and less accumulated impairment, if any. Cost
includes expenses related directly to acquisition and
installation of the concerned assets, borrowing cost
during the construction period and estimated costs of
dismantling and removing the item and restoring the
site on which it is located and excludes any duties /
taxes recoverable.

Advances paid towards the acquisition of PPE
outstanding at each reporting date is classified as
Capital Advances under "Other Non-Current Assets"
and assets which are not ready for intended use as
on the date of Balance Sheet are disclosed as "Capital
Work in Progress".

Properties in the course of construction for production,
supply or administrative purposes are carried at cost,
less any recognised impairment loss. Cost includes
all costs incurred to bring the assets to their present
location and condition. Such properties are classified
to the appropriate categories of property, plant and
equipment when completed and ready for intended
use. Depreciation of these assets, on the same basis
as other property assets, commences when the assets
are ready for their intended use.

If significant parts of an item of property, plant and
equipment have different useful lives, then they are
accounted and depreciated for as separate items
(major components) of property, plant and equipment.

An item of property, plant and equipment is
de-recognised upon disposal or when no future
economic benefits are expected from its use or
disposal. Gains or losses arising from de-recognition of
fixed assets are measured as the difference between
the net disposal proceeds and the carrying amount of
the asset and are recognised in the Statement of Profit
and Loss when the asset is derecognised.

The estimated 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.

Subsequent costs are included in the assets
carrying amount or recognised as a separate asset,
as appropriate, only when it is probable that future
economic benefits associated with the items will
flow to the Company and the cost of the item can be
measured reliably. All other repairs and maintenance
are charged to the Statement of Profit and Loss during
the period in which they are incurred.

When significant identifiable parts of PPE are
required to be replaced, the Company de-recognises
the replaced parts and recognises the new part with
its own associated useful life and it is depreciated
accordingly. In other cases, expenses are charged off
to the Statement of Profit and Loss.

Depreciation is provided, under the Straight-Line
method basis so as to write off the original cost of
the asset less its estimated residual value over the
estimated useful life. The Management's estimate
of useful lives is in accordance with Schedule II to
the Companies Act, 2013, except for auxiliaries and
certain other machineries, where the life considered is
16-18 years instead of 25 years based on the technical
evaluation done by the Company. Assets costing
' 50,000 or less are fully depreciated in the year of
purchase.

j) Investment Property

Land or Building held to earn rentals or for capital
appreciation or both rather than for use in the
production or supply of goods and services or for
administrative purposes; or sale in the ordinary course
of business is recognised as Investment Property.
Investment Property are measured initially at cost,
including transaction costs. Subsequent to initial
recognition, investment properties are stated at cost
less accumulated depreciation and accumulated
impairment loss, if any.

Though, the Company measures investment property
using cost based measurement, the fair value of

investment property is disclosed in Notes. Fair
values are determined based on an annual evaluation
performed by a Government approved valuer.

Investment properties are de-recognised either
when they have been disposed off or when they
are permanently withdrawn from use and no future
economic benefit is expected from their disposal.
The difference between the net disposal proceeds
and the carrying amount of the asset is recognised in
the Statement of Profit and Loss in the period of de¬
recognition.

c) intangible Assets

An Intangible asset is recognised when it is probable
that the future economic benefits that are attributable
to the asset will flow to the Company and the cost
of the asset can be measured reliably. Intangible
assets that are acquired separately are carried at
cost less accumulated amortisation and accumulated
impairment losses. Intangible assets are amortised
over their estimated useful life. The useful life of
intangible assets are assessed as either finite or
infinite. Amortisation is recognised on a straight-line
basis over their estimated useful lives. The estimated
useful life and amortisation method are reviewed
at the end of each reporting period, with the effect
of any changes in estimate being accounted for on
a prospective basis. Estimated useful lives of finite
intangible assets are as follows:

Patents 10 years

Software 10 years

Changes in the expected useful life are considered
to modify the amortisation period or method, as
appropriate, and are treated as changes in accounting
estimates. Intangible assets with indefinite useful
lives are not amortised but are tested for impairment
annually. The assessment of indefinite life is reviewed
annually to determine whether the indefinite life
continues to be supportable. If not, the change in useful
life from indefinite to finite is made on a prospective
basis.

Gains or losses arising from de-recognition of an
intangible asset are measured as the difference

between the net disposal proceeds and the carrying
amount of the asset and are recognised in the
Statement of Profit and Loss when the asset is
derecognised.

d) impairment of Non-Financial Assets

At the end of each reporting period, the Company
reviews the carrying amounts of its non-financial
assets to determine whether there is any indication
of an impairment loss. If any such indication exists,
the recoverable amounts are estimated in order to
determine the extent of the impairment loss (if any). An
impairment loss is recognised whenever the carrying
amount of an asset or a cash-generating unit exceeds
its recoverable amount. The impairment loss, if any, is
recognised in the Statement of Profit and Loss in the
period in which impairment takes place.

Recoverable amount is the higher of an asset's fair
value less cost of disposal and its value in use.

Value in use is the present value of estimated future
cash flows expected to arise from the continuing use
of an asset and from its disposal at the end of its useful
life. Where an impairment loss subsequently reverses,
the carrying amount of the assets is increased to
the revised estimate of its recoverable amount, but
not above the carrying amount that would have been
determined (net of depreciation or amortisation) had
no impairment loss been recognised for the asset in
prior periods.

e) inventories

Inventories are measured at the lower of cost and
net realisable value. Cost of inventories comprises
all costs of purchase (net of input credits), costs of
conversion and other costs incurred in bringing the
inventories to their present location and condition.
Cost of inventories, stores and spares, raw materials,
trading and other products is determined on weighted
average basis. Cost of work-in-progress and finished
stock is determined by the absorption costing method.

Net realisable value represents estimated selling price
in the ordinary course of business, less estimated
costs of completion and estimated costs necessary to
make the sale.

Provision is made for cost of obsolescence and other
anticipated losses, whenever considered necessary
by Management based on the best judgement and
estimates.

f) Cash and Cash Equivalents

Cash and Cash Equivalents in the Balance Sheet
comprises cash on hand, bank balances and short
term deposits with banks with an original maturity
of three months or less which are readily convertible
into cash and which are subject to insignificant risk of
changes in value.

For the purpose of the Statement of cash flows, cash
and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part of
the Company's cash management.

g) Cash flow statement

Cash Flows are reported using Indirect Method,
whereby profit for the year is adjusted for the effects
of transactions of a non-cash nature, any deferrals or
accruals of past or future operating cash receipts or
payments and item of income or expenses associated
with investing or financing cash flows. The cash flows
from operating, investing and financing activities of
the Company are segregated.

Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months
or less, which are subject to an insignificant risk of
changes in value. For the purpose of the Statement
of Cash Flows, cash and cash equivalents consist of
cash and short-term deposits, as defined above, net of
outstanding bank overdrafts as they are considered an
integral part of the Company's cash management.

h) Investment in Subsidiary

Investment in Subsidiary entities is carried at cost
less accumulated impairment losses, if any. Where an
indication of impairment exists, the carrying amount
of the investment is assessed and written down
immediately to its recoverable amount. On disposal
of investments in subsidiary entity the difference

between net disposal proceeds and the carrying
amounts are recognised in the Statement of Profit and
Loss.

i) Financial instruments

A financial instrument is any contract that gives rise
to financial assets of one entity and financial liability
or equity of another entity. Financial instruments also
include derivative contracts such as foreign currency
foreign exchange forward contracts.

> Financial Assets
Initial recognition:

Financial assets are recognised when the
Company becomes a party to the contractual
provisions of the instruments. Financial assets
except for trade receivables are initially measured
at fair value plus transaction costs that are directly
attributable to the acquisition of the financial
assets, except for financial assets classified
as measured at fair value through profit or loss
(FVTPL), for which transaction cost is recognised
in profit or loss.

For investments in mutual funds, the Company
has opted to account for fair value through profit
or loss.

Subsequent measurement of financial assets:

Financial assets are subsequently classified and
measured at:

- amortised cost

- fair value through Profit and Loss (FVTPL)

- fair value through Other Comprehensive
Income (FVTOCI).

- Financial assets are not reclassified
subsequent to their recognition, except if
and in the period the Company changes
its business model for managing financial
assets.

? Trade Receivables :

Trade receivables that do not contain
a significant financing component are
measured at transaction price.

? Debt Instruments:

Debt instruments are initially measured
at amortised cost, fair value through
other comprehensive income
('FVTOCI') or fair value through profit or
loss ('FVTPL) till de-recognition on the
basis of

- the Company's business model
for managing the financial assets
and

- the contractual cash flow
characteristics of the financial
asset.

Measured at amortised cost:

Financial assets that are held within a
business model whose objective is to hold
financial assets in order to collect contractual
cash flows that are solely payments of
principal and interest on the principal amount
outstanding, are subsequently measured at
amortised cost using the effective interest
rate ('EIR') method less impairment, if any.
The amortisation of EIR and loss arising
from impairment, if any is recognised in the
Statement of Profit and Loss.

Measured at Fair value through other
comprehensive income (FVTOCI):

Financial assets that are held within a
business model whose objective is achieved
by both, selling financial assets and
collecting contractual cash flows that are
solely payments of principal and interest,
are subsequently measured at fair value
through other comprehensive income. Fair
value movements are recognised in the
other comprehensive income (OCI). Interest
income calculated using the effective
interest rate recognised in the Statement of
Profit and Loss. A gain or loss on a financial
asset measured at fair value through other
comprehensive income shall be recognised
in other comprehensive income, except for
impairment gains or losses and foreign

exchange gains and losses, until the financial
asset is derecognised or reclassified.
When the financial asset is derecognised
the cumulative gain or loss previously
recognised in other comprehensive income
is reclassified from equity to profit or loss as
a reclassification adjustment.

Measured at Fair Value Through profit and
Loss (FVTPL):

A financial asset not classified as either
amortised cost or FVTOCI, is classified as
FVTPL. Such financial assets are measured
at fair value with all changes in fair value,
including interest income and dividend
income if any, recognised in the Statement
of Profit and Loss.

? Equity Instruments:

• Measured at Fair Value Through
profit and Loss (FVTPL):

Investments in equity instruments
other than investments in
subsidiaries are classified as
at FVTPL, unless the Company
irrevocably elects on initial
recognition to present subsequent
changes in fair value in other
comprehensive income for equity
instruments which are not held for
trading.

• Measured at Fair value through
other comprehensive income
(FVTOCI):

On initial recognition, the
Company can make an irrevocable
election (on an instrument-by¬
instrument basis) to present
the subsequent changes in fair
value in other comprehensive
income. This election is not
permitted if the equity investment
is held for trading. These elected
investments are initially measured
at fair value plus transaction
costs.

Subsequently, they are measured at fair
value with gains and losses arising from
changes in fair value recognised in other
comprehensive income and accumulated
in the reserve for 'equity instruments
through other comprehensive income'.
On de-recognition, amounts presented in
other comprehensive income shall not be
subsequently transferred to profit or loss,
but may transfer the cumulative gain or loss
within equity

Impairment of financial assets:

The Company applies the expected credit
loss model for recognising impairment loss
on financial assets measured at amortised
cost, lease receivables, trade receivables,
other contractual rights to receive cash or
other financial asset.

For trade receivables, the Company
measures the loss allowance at an amount
equal to lifetime expected credit losses.

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.

Pe-recognition of financial assets:

The Company de-recognises a financial
asset when the contractual rights to the
cash flows from the financial asset expire, or
it transfers the contractual rights to receive
the cash flows from the asset.

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 de-recognised. Where the entity has
not transferred substantially all risks and
rewards of ownership of the financial asset,
the financial asset is not de-recognised.

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
de-recognised 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 recognised to the extent of continuing
involvement in the financial asset.

^ Financial liabilities
Initial recognition

Financial liabilities are recognised when the
Company becomes a party to the contractual
provisions of the instrument. Financial liabilities
are initially measured at the amortised cost
unless at initial recognition, they are classified
as fair value minus transaction costs that are
directly attributable to the issue of the financial
liability, except for financial liabilities measured
at fair value through profit or loss (FVTPL), for
which transaction costs are recognised in profit
or loss. Subsequently, financial liabilities are held
at amortised cost, using the effective interest
method, unless required to be measured at
FVTPL.

Subsequent Measurement

Financial liabilities are subsequently measured at
amortised cost using the EIR method. Financial
liabilities carried at fair value through profit or
loss are measured at fair value with all changes
in fair value recognised in the Statement of
Profit and Loss. The interest expenses using the
effective interest method is recognised over the
relevant period of the financial asset. The same is
included under Finance cost in the Statement of
Profit and Loss unless it is capitalised as part of
cost of an item of Property, Plant and Equipment.

De-recognition

A financial liability is derecognised 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 the new liability.
The difference in the respective carrying
amounts is recognised in the Statement of Profit
and Loss.

? Derivative financial instruments

The Company enters into a variety of
derivative financial instruments to manage
its exposure to foreign exchange rate
risks, including foreign exchange forward
contracts and foreign exchange option
contracts

Derivatives are initially recognised at fair
value at the date the derivative contracts
are entered into and are subsequently
remeasured to their fair value at the end of
each reporting period. The resulting gain or
loss is recognised in the Statement of Profit
and Loss immediately unless the derivative
is designated and effective as a hedging
instrument, in which event the timing of the
recognition in the Statement of Profit and
Loss depends on the nature of the hedging
relationship and the nature of the hedged
item.

Embedded Derivatives

Derivatives embedded in non-derivative
host contracts that are not financial assets
within the scope of Ind AS 109 are treated
as separate derivatives when their risks
and characteristics are not closely related
to those of the host contracts and the host
contracts are not measured at FVTPL

Hedge Accounting:

The Company designates certain hedging
instruments, which include derivatives
and non-derivatives in respect of foreign
currency risk, as either fair value hedges or
cash flow hedges.

At the inception of the hedge relationship, the
entity documents the relationship between
the hedging instrument and the hedged item,
along with its risk management objectives
and its strategy for undertaking various
hedge transactions. Furthermore, at the
inception of the hedge and on an ongoing
basis, the Company documents whether
the hedging instrument is highly effective
in offsetting changes in fair values or cash
flow of the hedged item attributable to the
hedged risk. Note 38 sets out details of the
fair values of the derivative instruments
used for hedging purposes.

Fair Value Hedges:

Changes in fair value of the designated
portion of derivatives that qualify as
fair value hedges are recognised in the
Statement of Profit and Loss immediately,
together with any changes in the fair value
of the hedged asset or liability that are
attributable to the hedged risk. The change
in the fair value of the designated portion of
hedging instrument and the change in the
hedged item attributable to the hedged risk
are recognised in the Statement of Profit and
Loss in the line item relating to the hedged
item.

Hedge accounting is discontinued when
the hedging instrument expires or is sold,
terminated, or exercised, or when it no
longer qualifies for hedge accounting. The
fair value adjustment to the carrying amount
of the hedged item arising from the hedged
risk is amortised to the Statement of Profit
and Loss from that date.

Cash Flow Hedges:

The effective portion of changes in the fair
value of derivatives that are designated
and qualify as cash flow hedges is
recognised in Other Comprehensive Income
and accumulated under the heading of
Cash Flow Hedging Reserve. The gain or
loss relating to the ineffective portion is
recognised immediately in the Statement of
Profit and Loss.

Amounts previously recognised in Other
Comprehensive Income and accumulated
in equity (relating to effective portion
as described above) are reclassified to
the Statement of Profit and Loss in the
periods when the hedged item affects
profit or loss, in the same line as the
recognised hedged item. However, when
the hedged forecast transaction results in
the recognition of a non-financial asset or a
non-financial liability, such gains and losses
are transferred from equity (but not as a
reclassification adjustment) and included
in the initial measurement of the cost of the
non-financial asset or non-financial liability.

The Company separates the intrinsic value
and time value of an option and designates
as hedging instruments only the change in
intrinsic value of the option. The change
in fair value of the intrinsic value and time
value of an option is recognised in the Other
Comprehensive Income and accounted
as a separate component of equity. Such
amounts are reclassified into the Statement
of Profit and Loss when the related hedged
items affect profit and loss.

Hedge accounting is discontinued when
the hedging instrument expires or is sold,
terminated, or exercised, or when it no longer
qualifies for hedge accounting. Any gain
or loss recognised in Other comprehensive
income and accumulated in equity at that
time remains in equity and is recognised

when the forecast transaction is ultimately
recognised in the Statement of Profit
and Loss. When a forecast transaction is
no longer expected to occur, the gain or
loss accumulated in equity is recognised
immediately in the Statement of Profit and
Loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset
and the net amount is reported in the balance
sheet if there is a currently enforceable legal right
to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the
assets and settle the liabilities 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.

J) Foreign Exchange Transactions

In preparing the financial statements of the Company,
transactions in currencies other than the Company'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 restated at the rates prevailing at the reporting
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
translated. Exchange differences on monetary items
are recognised in the Statement of Profit and Loss in
the period in which they arise.

k) Revenue Recognition

Revenue from sale of products is recognised when on
transfer of control of goods or services to a customer
at an amount that reflects the consideration to which
the Company is expected to be entitled to in exchange
for those goods or services rendered. Revenue
towards satisfaction of a performance obligation is

measured at the amount of transaction price (net of
variable consideration) allocated to that performance
obligation. The transaction price of goods sold, and
services rendered is net of variable consideration on
account of discounts offered by the Company as part
of the contract. The performance obligation in case of
sale of goods is satisfied at a point in time, i.e. when
the products are dispatched to the customers or on
delivery to the customer, as may be specified in the
contract, all significant contractual obligations have
been satisfied and the collection of the resulting
receivable is reasonably expected.

No element of financing is deemed present as the
sales are made with normal credit days consistent
with market practice.

Other Operating Revenues

Export and other incentives are accrued when there
is reasonable assurance that they will be received
and the Company will comply with the conditions
associated with such incentives.

Dividend and interest income

Dividend income from investments is recognised
when the shareholder's right to receive payment has
been established.

For all financial instruments measured at amortised
cost, interest income is recorded using the effective
interest rate (EIR), which is the rate that discounts the
estimated future cash payments or receipts through
the expected life of the financial instruments or a
shorter period, where appropriate, to the net carrying
amount of the financial assets. Interest income is
included in other income in the Statement of Profit and
Loss.

I) Employee benefits

Short-term Employee Benefits:

All employee benefits payable wholly within twelve
months of rendering the service are classified as short
term employee benefits. Benefits such as salaries,
performance incentives, etc., are recognised as an
expense at the undiscounted amount in the Statement

of Profit and Loss of the year in which the employee
renders the related service. A liability is recognised for
the amount expected to be paid 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 obligation can be estimated reliably.

Post-Employment Benefits:

(a) Defined Contribution Plans

Payments made to a defined contribution plan
such as Provident Fund, Family Pension, and
Superannuation scheme are charged as an
expense in the Statement of Profit and Loss as
they fall due.

(b) Defined Benefit Plans

The Company's net obligation in respect of
defined benefit plans is calculated separately
for each plan by estimating the amount of future
benefit that employees have earned in the current
and prior periods, after discounting the same.
The calculation of defined benefit obligations
is performed annually by a qualified actuary
using the projected unit credit method. Re¬
measurement of the net defined benefit liability,
comprises actuarial gains and losses which are
recognised immediately in Other Comprehensive
Income (OCI). Net interest expense/ (income) on
the net defined liability/ (assets) is computed
by applying the discount rate used to measure
the net defined liability/ (asset). All expenses
represented by current service cost, past service
cost, if any and net interest on the defined benefit
liability/(asset) are recognised in the Statement
of Profit and Loss. When the benefits of a plan
are changed on account of plan amendments or
when a plan is curtailed, the resulting change in
benefit that relates to past service or the gain or
loss on curtailment is recognised immediately
in Statement of Profit and Loss. The Company
recognises gains and losses on the settlement
of a defined benefit plan when the settlement
occurs.

(c) Other Long-Term Employee Benefits

The Company's net obligation in respect of long¬
term employee 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. Re-measurement are recognised
in Statement of Profit and Loss in the period in
which they arise.

m) Equity Share-Based Payments

Employees of the Company also receive remuneration
in the form of share based payments in consideration
of the services rendered.

Under the equity settled share-based payment,
the fair value on the grant date of the awards given
to employees is recognised as 'employee benefit
expenses' with a corresponding increase in equity
over the vesting period. The fair value of the options at
the grant date is calculated on the basis of the Black
Scholes model. At the end of each reporting period,
apart from the non-market vesting condition, the
expense is reviewed and adjusted to reflect changes
to the level of options expected to vest. When the
options are exercised, the Company issues fresh
equity shares.

When the terms of an equity-settled award are
modified, an additional expense is recognised for
any modification that increases the total fair value of
the share-based payment transaction, or is otherwise
beneficial to the employee as measured at the date of
modification.

n) Leases

As a Lessee

As a lessee, at the commencement date of a lease,
the Company recognises a right-of-use asset and a
corresponding lease liability for all lease arrangements,
except for short-term leases (lease term of 12 months
or less) and leases of low-value assets for which lease
payments are recognised as an expense on a straight¬
line basis over the lease term (or another systematic
basis if more representative). As a lessor, the Company

classifies leases as either finance leases or operating
leases based on whether substantially all the risks and
rewards incidental to ownership of underlying asset
are transferred.

The Company's lease assets classes primarily consist
of leases for land, buildings and office equipments.
The Company assesses whether a contract contains
a lease, at inception of a Contract. A contract is, or
contains, a lease if the contract conveys the right to
control the use of an identified asset for a period of
time in exchange for consideration. To assess whether
a contract conveys the right to control the use of an
identified asset, the Company assesses whether:

(i) The contract involves the use of an identified
asset

(ii) the Company has substantially all of the
economic benefits from use of the asset through
the period of the lease and

(iii) the Company has the right to direct the use of the
asset.

At the date of commencement of the lease, the
Company recognises a right-of-use asset ("ROU")
and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for leases
with a term of twelve months or less (short-term
leases) and low value leases. For these short-term and
low value leases, the Company recognises the lease
payments as an operating expense on a straight-line
basis over the term of the lease.

The right-of-use assets are initially recognised at
cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or
prior to the commencement date of the lease plus
any initial direct costs less any lease incentives. They
are subsequently measured at cost less accumulated
depreciation and impairment losses, if any.

Right-of-use assets are depreciated from the
commencement date on a straight-line basis over
the shorter of the lease term and useful life of the
underlying asset. The estimated useful lives of right-
of-use assets are determined on the same basis as
those of property and equipment.

Leasehold land is amortised on a straight-line basis
over the period of the lease. In addition, the right-of-use
asset is periodically reduced by impairment losses, if
any, and adjusted for certain re-measurements of the
lease liability.

The lease liability is initially measured at amortised
cost at the present value of the future lease payments.
The lease payments are discounted using the interest
rate implicit in the lease or, if not readily determinable,
using the incremental borrowing rates in the country
of domicile of these leases. Lease liabilities are re¬
measured with a corresponding adjustment to the
related right of use asset if the Company changes its
assessment if whether it will exercise an extension or
a termination option.

Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments
have been classified as financing cash flows.

As a Lessor

As a lessor, lease income under operating leases is
recognised on a straight-line basis over the lease
term. Initial direct costs incurred in negotiating and
arranging an operating lease are added to the carrying
amount of the underlying asset and recognised as an
expense over the lease term on the same basis as the
lease income.

o) Borrowing costs

Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily
takes a substantial period of time to get ready for its
intended use or sale are added to the cost of those
assets, until such time as the assets are substantially
ready for their intended use or sale. Interest income
earned on the temporary investment of specific
borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible
for capitalisation. All other borrowing costs are
recognised in the Statement of Profit and Loss in the
period in which they are incurred.

p) Taxes on Income

Income tax expense comprises current tax expense
and the deferred tax during the year. Current and

deferred taxes are recognised in the Statement of Profit
and Loss, except when they relate to items that are
recognised in other comprehensive income or directly
in equity, in which case, the current and deferred tax
are also recognised in other comprehensive income or
directly in equity, respectively.

Current tax

Current tax is measured at the amount of tax expected
to be payable on the taxable income for the year and
any adjustments to the tax payable or receivable in
respect of previous years as determined in accordance
with the provisions of the Income Tax Act,1961 that
have been enacted or subsequently enacted at the end
of the reporting period.

Current tax assets and current tax liabilities are
offset when there is legally enforceable right to set
off the recognised amounts and there is an intention
to settle the asset and the liability on a net basis or
simultaneously.

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 assets are recognised for unused tax
losses, unused tax credits and deductible temporary
differences to the extent that it is probable that future
taxable profits will be available against which they
can be used. Deferred tax assets are reviewed at each
reporting date and are reduced to the extent that it
is no longer probable that the related tax benefit will
be realised; such reductions are reversed when the
probability of future taxable profits improves.

Unrecognised deferred tax assets are reassessed at
each reporting date and recognised to the extent that
it has become probable that future taxable profits will
be available against which they can be used.

Deferred tax is measured at the tax rates that are
expected to be applied to temporary differences when
they reverse, using tax rates enacted or substantively
enacted at the reporting date.

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