1. Significant accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in
accordance with generally accepted accounting
principles in India ('Indian GAAP') under the historical
cost convention on an accrual basis except for
certain financial instruments which are measured at
fair values in compliance with all material aspects of
the Accounting Standard (AS) Notified under Section
133 of the Companies Act, 2013 read together with
paragraph 7 of the Companies (Accounts) Rules 2014,
the provisions of the Companies Act, 2013 (to the
extent notified). The financial statements are
prepared & presented in Indian rupees.

1.2 Use of estimates

The preparation of the financial statements in
conformity with the generally accepted accounting
principles requires the management to make
estimates and assumptions that affect the reported
amounts of assets, liabilities, , revenues and
expenses and disclosure of contingent liabilities on
date of the financial statements. Actual results could
differ from the estimates. Any revision to the
accounting estimates is recognised prospectively in
current and future periods.

1.3 Current-non-current classification

All assets and liabilities are classified into current
and non-current

Assets

An Asset is classified as current when it satisfies
any of the following criteria:

a. It is expected to be realized in, or is intended for
sale or consumption in, the company's normal
operating cycle;

b. It is held primary for the purpose of being traded;

c. It is expected to be realized within 12 months after
the reporting date; or

d. 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.

Current Assets include the current portion of non¬
current financial assets.

All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the
following criteria:

a. It is expected to be settled in the company's normal
operating cycle.

b. It is held primarily for the purpose of being traded;

c. It is due to be settled within 12 months after the reporting
date; or

d. 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 the liability that could, at the
option of the counterparty, results in its settlement by the
issue of equity instruments do not affect its classification.

Current liabilities include current portion of non-current
financial liabilities.

All other liabilities are classified as non-current.

1.4 evenue recognition

•Sale of commodity is recognized when all the significant
risks and rewards have been passed to the buyer.

Income from treasury operations comprises of profit/loss
on sale of securities and profit/loss on equity derivatives,
commodity derivatives and currency derivative instruments.

i) Profit/loss on sale of securities is determined based on
the cost of the securities sold.

ii) Realised profit/ loss on closed positions of derivative
instruments is recognised on final settlement on squaring-
up of the contracts. Outstanding derivative contracts in the
nature of forwards / futures / options are measured at fair
value as at the balance sheet date. Fair value is determined
using quoted market prices in an actively traded market, for
the instrument, wherever available, as the best evidence of
fair value. In the absence of quoted market prices in an
actively traded market, a valuation technique is used to
determine the fair value. In most cases the valuation
techniques use observable market data as input parameters
in order to ensure reliability of the fair value measure.

Profit/loss earned on sale of investments is recognised on
trade date basis. Profit/loss on sale of investments is
determined based on the cost of the investments sold.

Interest income is recognised on accrual basis.

Dividend income is recognised when the right to receive
payment is established.

1.5 Impairment of assets

The Company assesses at each balance sheet date
whether there is any indication that an asset may be
impaired based on internal/external factors. If any
such indication exists, the Company estimates the
recoverable amount of the asset. If such recoverable
amount of the asset is less than its carrying amount,
the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment
loss and is recognized in the statement of profit and
loss. If at the balance sheet date there is an
indication that a previously assessed impairment
loss no longer exists, the recoverable amount is
reassessed and the asset is reflected at the
recoverable amount subject to a maximum of the
depreciable historical cost.

¹⁶ Foreign currency transactions

Foreign currency transactions are recorded at the
rates of exchange prevailing on the date of the
transaction. Exchange differences, if any arising out
of transactions settled during the year are
recognised in statement of profit and loss of the
year.

Monetary assets and liabilities denominated in foreign
currencies as at the balance sheet date are translated
at the closing exchange rates on that date. The
exchange differences, if any, are recognised in
statement of profit and loss of the year and related
assets and liabilities are accordingly restated in the
balance sheet.

17 Inventories

Raw materials, stores, spares, and trading goods
are valued at lower of cost and net realizable
value.

Work-in-Progress and finished goods are valued
at the lower of cost and net realizable

value. Cost includes direct materials
and labour and a part of manufacturing
overheads based on normal operating capacity.

Net realizable 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. Cost
comprises of cost of Purchase & other costs
incurred in bringing them to their respective
present location and condition and is
determined on average basis.

1.8 Investments

Investments are classified into long term
investments and current investments.
Investments which are intended to be held for
one year or more are classified as long term
investments and investments which are
intended to be held for less than one year are
classified as current investments.

Long term investments are carried at cost less
diminution in value which is other than
temporary, determined separately for each
investment.

Current investments are carried at lower of cost and fair
value. The comparison of cost and fair value is done
separately in respect of each category of investment. In
case of investments in mutual funds, the net asset value of
units declared by the mutual funds is considered as the fair
value.

1.9 Earnings per share

The Company reports basic and diluted earnings per
share in accordance with Accounting Standard 20 -
Earnings Per Share prescribed under Section 133 of the
Companies Act, 2013 read with Rule 7 of the Companies
(Accounts) Rules, 2014. Basic earnings per share is
computed by dividing the net profit after tax
attributable to the equity shareholders by the weighted
average number of equity shares outstanding for the
year.

Diluted earnings per share reflect the potential dilution
that could occur if securities or other contracts to issue
equity shares were exercised or converted during the year.
Diluted earnings per share is computed by dividing the net
profit after tax by the weighted average number of equity
shares and dilutive potential equity shares outstanding
during the year.

1.10 Fixed assets and depreciation
Tangible fixed assets

Fixed assets are stated at cost less accumulated
depreciation. The cost of fixed assets comprises
purchase price and any attributable cost of bringing
the asset to its working condition for its intended
use.

Depreciation is provided on a written down value
basis from the date the asset is ready for its
intended use or put to use whichever is earlier. In
respect of assets sold, depreciation is provided
upto the date of disposal.

As per the requirement of Schedule II of the
Companies Act, 2013, the Company has evaluated the
useful lives of the respective fixed assets which are as
per the provisions of Part C of the Schedule for
calculating the depreciation. The useful lives of the
fixed assets are as follows:

Intangible fixed assets

Intangible fixed assets are recorded in
consideration paid for the acquisition of such assets
and are carried at cost less accumulated amortization
and impairment, if any.

Intangibles such as software is amortised over a
period of 3 years or its estimated useful life whichever
is shorter.

1.11 Taxation

Tax expense comprises current tax (i.e. amount of tax
for the period determined in accordance with the
Income Tax Act, 1961) and deferred tax charge or credit
(reflecting the tax effect of timing differences
between accounting income and taxable income for
the period).

Current tax

Provision for income tax is recognized based on
estimated tax liability computed after adjusting for
allowances, disallowances and exemptions in
accordance with the Income Tax Act, 1961.

Deferred taxation

The deferred tax charge or credit and the
corresponding deferred tax liabilities and assets are
recognized using the tax rates that have been
enacted or substantively enacted at the balance
sheet date. Deferred tax assets are recognised only
to the extent there is reasonable certainty that the
asset can be realised in future; however, where there
is unabsorbed depreciation or carried forward loss
under taxation laws, deferred tax assets are
recognised only if there is a virtual certainty of
realisation of the assets. Deferred tax assets are
reviewed at each balance sheet date and written
down or written-up to reflect the amount that is
reasonably / virtually certain (as the case may be) to
be realised.

Minimum Alternative Tax (MAT) credit

MAT credit asset is recognized where there is
convincing evidence that the asset can be realized in
future. MAT credit assets are reviewed at each
balance sheet date and written down or written up to
reflect the amount that is reasonably certain to be
realised.