3. Material accounting policies

3.1 Statement of compliance

(i) The financial statements of the Company as at and for
the year ended March 31, 2026 have been prepared
and presented in accordance with Indian Accounting
Standards ('Ind AS') notified under Section 133 of the
Companies Act, 2013 ('the Act') [Companies (Indian
Accounting Standards) Rules, 2015] and presentation
requirements of Division II of Schedule III to the
Companies Act, 2013 as amended from time to time,
and other relevant provisions of the Act and accounting
principles generally accepted in India.

(ii) Consistency of accounting policy

The accounting policies are applied consistently to all
the periods presented in the financial statements, except
where a newly issued accounting standard is initially
adopted or a revision to an existing standard requires a
change in the accounting policy hitherto in use.

3.2 Basis of preparation and measurement

These financial statements have been prepared by the
Company as a going concern on the basis of relevant Ind AS
that are effective. The financial statements have been prepared
on the historical cost and on an accrual basis, except for certain
financial instruments which are measured at fair values at the
end of each reporting period. Historical cost is based on the
fair value of the consideration given in exchange for goods
and services. Net defined benefit (asset)/ liability is measured
at fair value of plan assets less the present value of defined
benefit obligation.

These financial statements have been prepared on the
historical cost convention and on an accrual basis, except for
the following material items in the balance sheet:

• derivative financial instruments are measured at fair value;

• financial assets are measured either at fair value or at
amortised cost depending on the classification;

• employee defined benefit assets/(liabilities) are
recognised as the net total of the fair value of plan assets,
adjusted for actuarial gains/(losses) and the present
value of the defined benefit obligation;

• long-term borrowings are measured at amortised cost

Current/ Non-current classification

The Company classifies an asset as current asset when:

• it expects to realise the asset, or intends to sell or
consume it, in its normal operating cycle;

• it holds the asset primarily for the purpose of trading;

• it expects to realise the asset within twelve months after
the reporting period; or

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

All other assets are classified as non-current.

Liability is classified as current when

• It expects to settle the liability in its normal operating cycle;

• It holds the liability primarily for the purpose of trading;

• The liability is due to be settled within twelve months
after the reporting period; or

• It does not have an unconditional right to defer
settlement of the liability for at least twelve months after
the reporting period. 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.

The operating cycle is the time between the acquisition of assets
for processing and their realisation in cash or cash equivalents.
The Company's normal operating cycle is twelve months.

Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between
market participants at the measurement date, regardless of
whether that price is directly observable or estimated using
another valuation technique.

The fair value of an asset or a liability is measured using the
assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in
their economic best interest.

A fair value measurement of a non-financial asset takes into
account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the
asset in its highest and best use.

The Company uses valuation techniques that are appropriate in
the circumstances and for which sufficient data are available to
measure fair value, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based
on the lowest level input that is significant to the fair value
measurement as a whole:

• Level 1 - Quoted (unadjusted) market prices in active
markets for identical assets or liabilities

• Level 2 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
directly or indirectly observable

• Level 3 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement
is unobservable

3.3 Functional, presentation currency and rounding of
amounts

The financial statements are presented in Indian Rupees (INR),
which is also the Company's functional currency. All amounts

disclosed in the financial statements have been rounded-off to
the nearest crore or decimal thereof as per the requirement of
Schedule III, unless otherwise stated. Amount less than H 0.01
crore is presented as 0.00.

3.4 Foreign currency translation

On initial recognition, all foreign currency transactions are
translated into the functional currency using the exchange
rates prevailing on the date of the transaction. As at the
reporting date, foreign currency monetary assets and liabilities
are translated at the exchange rate prevailing on the Balance
Sheet date and the exchange gains or losses are recognised in
the Statement of Profit and Loss.

3.5 Property plant and equipment ('PPE')

(a) Recognition and measurement

The cost of an item of property, plant and equipment
shall be recognised as an asset if, and only if 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.

On adoption of Ind AS, the Company retained the
carrying value for all of its property, plant and equipment
as recognised in the financial statements as at the date of
transition to Ind ASs, measured as per the previous GAAP
and used that as its deemed cost as permitted by Ind AS
101 'First-time Adoption of Indian Accounting Standards'.

PPE including capital work-in-progress are initially
recognised at cost. The initial cost of PPE comprises its
purchase price, including non-refundable duties and
taxes net of any trade discounts and rebates, any directly
attributable cost of bringing the item to its working
condition for its intended use and estimated costs of
dismantling and removing the item and restoring the site
on which it is located.

Subsequent to initial recognition, PPE are stated at cost
less accumulated depreciation (other than freehold land,
which are stated at cost) and impairment losses, if any.

Subsequent costs are included in the asset's carrying
amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits
associated with the item will flow to the Company
and the cost of the item can be measured reliably. The
carrying amount of any component accounted for as a
separate asset is derecognised when replaced. All other
repairs and maintenance are charged to profit or loss
during the reporting period in which they are incurred.

The residual values, useful life and depreciation method
are reviewed at each financial year-end to ensure that
the amount, method and period of depreciation are
consistent with previous estimates and the expected

pattern of consumption of the future economic benefits
embodied in the items of property, plant and equipment.

An item of property, plant and equipment is derecognised
upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset.
Any gain or loss arising on disposal or retirement of an
item of property, plant and equipment is determined as
the difference between sales proceeds and the carrying
amount of the asset and is recognised in profit or loss.
Fully depreciated assets still in use are retained in the
financial statements.

(b) Depreciation

Depreciation is recognised so as to write off the cost
of assets (other than freehold land and capital work
in progress) less their residual values over the useful
lives, using the straight-line method ('SLM'). Management
believes based on a technical evaluation (which is based
on technical advice, taking into account the nature of the
asset, the estimated usage of the asset, the operating
conditions of the asset, past history of replacement,
anticipated technological changes, manufacturers
warranties and maintenance support, etc.) that the useful
lives of the assets reflect the periods over which these
assets are expected to be used, which are as follows:

The carrying values of property, plant and equipment
are reviewed for impairment when events or changes in
circumstances indicate that the carrying value may not
be recoverable.

Useful lives and residual lives are reviewed annually at
reporting date and adjusted if appropriate. Based on
internal technical evaluation and consequent advice, the
management believes that its estimates of useful lives
as given above best represent the period over which
management expects to use these assets.

Depreciation on additions/ (disposals) is provided on
pro rata basis i.e. from/ (upto) the date on which assets is
ready for use/ (disposed of).

(c) Gain or Loss on Disposal

Any gain or loss on disposal of property, plant
and equipment is recognised in the Statement of
Profit and Loss.

3.6 Investment Property

(a) Recognition and Measurement

Flats in buildings held to earn rentals or for capital
appreciation or both rather than for use in the production
or supply of goods or services or for administrative
purposes; or sale in the ordinary course of business is
recognised as Investment Property.

An investment property is measured initially at its cost.
The cost of an investment property comprises its purchase
price and any directly attributable expenditure. After
initial recognition, the Company carries the investment
property at cost less accumulated depreciation and
accumulated impairment, if any.

Subsequent expenditure is capitalised only if it is
probable that the future economic benefits associated
with the expenditure will flow to the Company and the
cost of the item can be measured reliably.

Transfers to (or from) investment property are made
only when there is a change in use. Transfers to / from
investment property do not change the carrying amount
ofthe property transferred and they do not change the cost
of that property for measurement or disclosure purposes.

The residual value and the useful life of an asset is
reviewed at least at each financial year-end and,
if expectations differ from previous estimates, the
change(s) is accounted for as a change in an accounting
estimate in accordance with Ind AS 8 - Accounting
Policies, Changes in Accounting Estimates and Errors.

Investment property is derecognised either when it has
been disposed of or when it is permanently withdrawn
from use and no future economic benefit is expected from
its disposal. Any gain or loss on disposal of investment
property (calculated as the difference between the net
proceeds from disposal and the carrying amount of the
item) is recognised in profit or loss.

(b) Depreciation

As per paragraph 56 of Ind AS 40 Investment Property,
after initial recognition, the Company measures all
of its investment property in accordance with Ind AS
16 Property, Plant and Equipment requirements for
cost model. The depreciable amount of an item of
investment property is allocated on a systematic basis
over its useful life. The Company provides depreciation
on the straight-line method. The Company believes
that straight-line method reflects the pattern in which
the asset's future economic benefits are expected to be
consumed by the Company. Based on internal technical
evaluation, the management believes useful lives of
the assets are appropriate. The depreciation method
is reviewed at least at each financial year-end and, if
there has been a significant change in the expected
pattern of consumption of the future economic benefits
embodied in the asset, the method is changed to reflect
the changed pattern. Such a change is accounted for as
a change in an accounting estimate in accordance with
Ind AS 8 Accounting Policies, Changes in Accounting
Estimates and Errors.

The depreciation charge for each period is recognised in
the Statement of Profit and Loss.

The estimated useful lives for the current and comparative
periods are as follows:

(c) Fair Value

Fair value of investment property is based on a valuation
by an independent valuer who holds a recognised
and relevant professional qualification and has recent
experience in the location and category of the investment
property being valued. The fair value of investment
property is disclosed in Note 5.

(d) Gain or Loss on Disposal

Any gain or loss on disposal of an Investment Property is
recognised in the Statement of Profit and Loss.

3.7 Other intangible assets

Other intangible assets are measured on initial recognition
at cost and subsequently are carried at cost less accumulated
amortisation and accumulated impairment losses, if any.

On adoption of Ind AS, the Company retained the carrying
value for all of its other intangible assets as recognised in
the financial statements as at the date of transition to Ind
ASs, measured as per the previous GAAP and used that as its
deemed cost as permitted by Ind AS 101 'First-time Adoption
of Indian Accounting Standards'.

Research and development:

Expenditure on research activities is recognised in profit or
loss as incurred.

Development expenditure is capitalised as part of the cost of
the resulting intangible asset only if the expenditure can be
measured reliably, the product or process is technically and
commercially feasible, future economic benefits are probable
and the Company intends to and has sufficient resources to
complete development and to use or sell the asset. Otherwise,
it is recognised in profit or loss as incurred. Subsequent to
initial recognition, development expenditure is measured
at cost less accumulated amortisation and any accumulated
impairment losses.

Subsequent expenditure is capitalised only when it increases
the future economic benefits embodied in the specific asset to
which it relates. All other expenditure, including expenditure
on internally generated goodwill and brands, is recognised in
profit or loss as incurred.

An intangible asset is derecognised on disposal, or when no
future economic benefits are expected from use or disposal.
Gains or losses on derecognition are determined by comparing
proceeds with carrying amount. These are included in profit or
loss within other gains/ (losses).

The Company amortises intangible assets with a finite useful
life using the straight-line method over the following range
of useful lives:

The estimated useful life is reviewed annually by
the management.

Goodwill

Goodwill arising on amalgamation of a business is carried at
cost as established at the date of acquisition of the business
less accumulated impairment losses, if any. For the purposes
of impairment testing, goodwill is allocated to cash-generating
units that are expected to benefit from the synergies of the
combination. A cash-generating unit to which goodwill has

been allocated is tested for impairment annually, or more
frequently when there is an indication that the unit may be
impaired. If the recoverable amount of the cash generating
unit is less than its carrying amount, the impairment loss is
allocated first to reduce the carrying amount of any goodwill
allocated to the unit and then to the other assets of the unit
pro rata based on the carrying amount of each asset in the
unit. Any impairment loss for goodwill is recognised directly in
profit or loss. An impairment loss recognised for goodwill is not
reversed in subsequent periods. On disposal of the relevant
cash-generating unit, the attributable amount of goodwill is
included in the determination of the profit or loss on disposal.

3.8 Leases

As a lessee

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 assets, the Company assesses whether: (i) the
contact 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.

As a lessee, the Company recognises a right-of-use asset and
a lease liability at the lease commencement date. The right-
of-use asset is initially measured at cost, which comprises
the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date, plus
any initial direct costs incurred and an estimate of costs to
dismantle and remove the underlying asset or to restore the
underlying asset or the site on which it is located, less any lease
incentives received.

The right-of-use asset is subsequently depreciated using the
straight-line method from the commencement date to the
earlier of the end of the useful life of the right-of-use asset or
the end of the lease term. The estimated useful lives of right-
of-use assets are determined on the same basis as those of
property and equipment. In addition, the right-of-use asset is
periodically reduced by impairment losses, if any, and adjusted
for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of
the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease
or, if that rate cannot be readily determined, the Company's
incremental borrowing rate. Generally, the Company uses its
incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease
liability comprise the fixed payments, including in-substance
fixed payments.

The Company determines its incremental borrowing rate
by obtaining interest rates from various external financing
sources and makes certain adjustments to reflect the terms of
the lease and type of the asset leased.

The lease liability is measured at amortised cost using the
effective interest method.

The Company has used number of practical expedients when
applying Ind AS 116 namely, Short-term leases, leases of low-
value assets and single discount rate.

The Company has elected not to recognise right-of-use assets
and lease liabilities for short-term leases that have a lease
term of 12 months or less and leases of low-value assets. The
Company recognises the lease payments associated with these
leases as an expense on a straight-line basis over the lease term.
The Company applied a single discount rate to a portfolio of
leases of similar assets in similar economic environment with a
similar end date.

The Company's leases mainly comprise land and buildings
and Plant and equipment. The Company leases land and
buildings for warehouse facilities. The Company also has
leases for equipment.

As a Lessor

When the Company acts as a lessor, it determines at lease
inception whether each lease is a finance lease or an
operating lease.

To classify each lease, the Company makes an overall
assessment of whether the lease transfers substantially all of
the risks and rewards incidental to ownership of the underlying
asset. If this is the case, then the lease is a finance lease; if not,
then it is an operating lease. As part of this assessment, the
Company considers certain indicators such as whether the
lease is for the major part of the economic life of the asset.

The Company recognises non-cancellable lease payments
received under operating leases as income on a straight-line
basis over the lease term as part of 'other income'

!.9 Non-current assets held for sale

Non-current assets and disposal group are classified as held
for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing
use. This condition is regarded as met only when the asset (or
disposal group) is available for immediate sale in its present
condition subject only to terms that are usual and customary
for sales of such asset (or disposal group) and its sale is highly
probable. Management must be committed to the sale, which
should be expected to qualify for recognition as a completed
sale within one year from the date of classification.

When the Company is committed to a sale plan involving
disposal of an investment, the investment that will be

disposed of is classified as held for sale when the criteria
described above are met.

Non-current assets (and disposal group) classified as held for
sale are measured at the lower of their carrying amount and
fair value less costs to sell.

3.10 Capital work-in-progress and intangible assets under
development

Capital work-in-progress comprises of property, plant and
equipment and intangible assets under development that
are not ready for their intended use at the end of reporting
period and are carried at cost comprising direct costs, related
incidental expenses, other directly attributable costs and
borrowing costs, less impairment losses if any.

3.11 Non-derivative financial instruments

Recognition and initial measurement

Financial assets and liabilities are recognised when the
Company becomes a party to the contractual provisions of
the instrument. Financial assets (unless it is a trade receivable
without a significant financing component) and liabilities
are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial
assets and financial liabilities (other than financial assets
and financial liabilities at fair value through profit or loss) are
added to or deducted from the fair value measured on initial
recognition of financial asset or financial liability.

Trade Receivables

A trade receivable without a significant financing component
is initially measured at the transaction price (net of variable
consideration) as the same are recorded after decreasing
rebates as per para 51 of Ind AS 115 Revenue from contracts
with customers.

Cash and cash equivalents

The Company considers all highly liquid financial instruments,
which are readily convertible into known amounts of cash
that are subject to an insignificant risk of change in value and
having original maturities of three months or less from the date
of purchase, to be cash equivalents. Cash and cash equivalents
consist of balances with banks which are unrestricted for
withdrawal and usage.

Classification and subsequent measurement

On initial recognition, a financial asset is classified as
measured at:

- amortised cost;

- Fair value through other comprehensive income ('FVOCI')
- equity investment; or

- Financial assets at fair value through profit or
loss ('FVTPL').

Financial assets are not reclassified subsequent to their initial
recognition unless the Company changes its business model
for managing financial assets, in which case all affected
financial assets are reclassified on the first day of the first
reporting period following the change in the business model.

Financial assets at amortised cost

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

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

Financial assets are measured at fair value through other
comprehensive income if these financial assets are held within
a business whose objective is achieved by both collecting
contractual cash flows that give rise on specified dates to solely
payments of principal and interest on the principal amount
outstanding and by selling financial assets.

The Company has made an irrevocable election to present
subsequent changes in the fair value of equity investments not
held for trading in Other Comprehensive Income.

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

Financial assets are measured at fair value through profit or
loss unless it is measured at amortised cost or at fair value
through other comprehensive income on initial recognition.
The transaction costs directly attributable to the acquisition of
financial assets and liabilities at fair value through profit or loss
are immediately recognised in profit or loss.

Financial liabilities

Financial liabilities are measured at amortised cost using the
effective interest method.

Equity instruments

An equity instrument is a contract that evidences residual
interest in the assets of the Company after deducting all of its
liabilities. Equity instruments recognised by the Company are
measured at the proceeds received net of direct issue cost.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net
amount is reported in financial statements 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.

3.12 Derivative financial instruments

In the ordinary course of business, the Company uses certain
derivative financial instruments to reduce business risks which
arise from its exposure to foreign exchange associated with
imports and exports (cash flow hedges).

When the Company opts to undertake hedge accounting,
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 or
fair values of hedged items. The Company documents its
undertaking various hedge transactions at the inception of
each hedge relationship.

Derivatives are initially recognised at fair value on the date
the derivative contract is entered into and are subsequently
remeasured 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.

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
recognised through OCI and as 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 recognised immediately in the Statement of Profit and
Loss. Amounts accumulated in equity are reclassified to the
Statement of Profit and Loss on settlement. When the hedged
forecast transaction results in the recognition of a non-financial
asset, the amounts accumulated in equity with respect to gain
or loss relating to the effective portion of the spot component
of forward contracts, both the deferred hedging gains and
losses and the deferred aligned forward points are included
within the initial cost of the asset. The deferred amounts are
ultimately recognised in the Statement of Profit and Loss as the
hedged item affects profit or loss.

When a hedging instrument expires, is sold or terminated,
or when a hedge no longer meets the criteria for hedge
accounting, then hedge accounting is discontinued
prospectively and any cumulative deferred gain or loss and
deferred costs of hedging 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 and deferred costs of hedging that
were reported in equity are immediately transferred to the
Statement of Profit and Loss.

3.13 Impairment

Financial assets (other than at fair value through profit &
loss)

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

For trade receivables only, the Company applies the simplified
approach permitted by Ind AS 109 Financial Instruments,
which requires expected lifetime losses to be recognised from
initial recognition of the receivables. Credit risk in relation to
trade receivable is assessed at every reporting date.

PPE, Capital work-in-progress, Intangibles assets and
Intangibles assets under development

PPE, Capital work-in-progress, intangibles assets and intangibles
assets under development with finite life are evaluated
for recoverability whenever there is any indication that
their carrying amounts may not be recoverable. If any such
indication exists, the recoverable amount (i.e. 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 the recoverable amount of an asset/CGU is estimated to be
less than its carrying amount, the carrying amount of the asset/
CGU is reduced to its recoverable amount. An impairment loss
is recognised in the Statement of Profit and Loss.

An impairment loss is reversed if there has been a change in
the estimates used to determine the recoverable amount. Such
a reversal is made only to the extent that the asset's carrying
amount does not exceed the carrying amount that would have
been determined, net of depreciation or amortization, if no
impairment loss had been recognised.

All Technological Knowhow project falling under Intangible
Assets under Development for more than 5 years will be
fully provided.

3.14 Inventories

Inventories are measured at lower of cost (on weighted average
basis) and net realisable value after providing for obsolescence
and other losses, where considered necessary. Cost includes
all production or conversion costs and other costs incurred
in bringing the goods to their present location and condition,
including relevant taxes and other levies, transit insurance
and receiving charges. Work-in-progress and finished goods
include appropriate proportion of overheads.

In the case of raw materials and stock-in-trade, cost comprises
of cost of purchase. In the case of work-in-progress and finished
goods and work in progress, cost includes an appropriate share
of production overheads based on normal operating capacity.

For seeds, remnant/substandard stocks are not valued and
are accounted as revenue in the year of sale of such stock.

Cost associated with hybrid seed production in leased land
for which produce is yet to be received will be accounted as
work-in-progress.

Raw materials, components and other supplies held for use
in the production of finished products are not written down
below cost except in cases when a decline in the price of
materials indicates that the cost of the finished products shall
exceed the net realisable value.

The net realisable value of work-in-progress is determined with
reference to the selling prices of related finished goods.

The comparison of cost and net realisable value is made on an
item-by-Item basis.

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

3.15 Revenue from contracts with customers

As per Ind AS 115 'Revenue from contracts with customers' - A
contract with a customer exists only when the parties to the
contract have approved it and are committed to perform their
respective obligations, the Company can identify each party's
rights regarding the distinct goods or services to be transferred
('performance obligations'), the Company can determine the
transaction price for the goods or services to be transferred,
the contract has commercial substance and it is probable
that the Company will collect the consideration to which it
will be entitled in exchange for the goods or services that will
be transferred to the customer. Revenues are recorded in the
amount of consideration to which the Company expects to be
entitled in exchange for performance obligations upon transfer
of control to the customer and is measured at the amount of
transaction price allocated to that performance obligation. The
transaction price of goods sold and services rendered is net of
estimated incentives, returns, rebates, sales tax and applicable
trade discounts, allowances, Goods and Services Tax ('GST') and
amounts collected on behalf of third parties.

3.15.1 Sale of goods

Based on the contractual terms with the customers,
revenue from sale of goods is recognised at the point
in time when control is transferred to the customer
either on dispatch of goods or goods accepted by the
customers at their premises.

Revenue is measured based on the transaction price,
which is the consideration, adjusted for volume
discounts, rebates, scheme allowances, price concessions,
incentives, and returns, if any, as specified in the contracts
with the customers. Revenue excludes taxes collected
from customers on behalf of the government. Accruals
for discounts/incentives and returns are estimated
(using the most likely method) based on accumulated

experience and underlying schemes and agreements
with customers. Due to the short nature of credit period
given to customers, there is no financing component
in the contract.

For contracts that permit the customer to return an
item, revenue is recognised to the extent that it is highly
probable that a significant reversal in the amount of
cumulative revenue recognised will not occur.

Therefore, the amount of revenue recognised is adjusted
for expected returns. In these circumstances, a refund
liability and a right to recover returned goods asset
are recognised.

The Company reviews its estimate of expected returns at
each reporting date.

The right to recover returned goods asset is measured at
the former carrying amount of the inventory. The refund
liability is included in other current liabilities and the right
to recover returned goods is included in current assets.

3.15.2 Interest Income

Interest income from financial assets is recognised when
it is probable that economic benefits will flow to the
Company and the amount of income can be measured
reliably. Interest income is accrued on a time basis,
by reference to the principal outstanding and at the
effective interest rate applicable, which is the rate that
exactly discounts estimated future cash receipts through
the expected life of the financial assets to that asset's net
carrying amount on initial recognition.

3.15.3 Dividend

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

3.15.4 Insurance claims

Insurance claims are accounted for on the basis of claims
admitted and to the extent that there is no uncertainty in
receiving the claims.

3.15.5 Contract balances
Contract assets

A Contract asset is the right to consideration in exchange
for goods or services transferred to the customer. If the
Company performs by transferring goods or services to
a customer before the customer pays consideration or
before payment is due, a contract asset is recognised for
the earned consideration that is conditional.

Contract liabilities

A contract liability is the obligation to transfer goods
or services to a customer for which the Company has
received consideration (or an amount of consideration is
due) from the customer. If a customer pays consideration
before the Company transfers goods or services to the
customer, a contract liability is recognised when the
payment is made or the payment is due (whichever is
earlier). Contract liabilities are recognised as revenue
when the Company performs under the contract.

3.16 Government Grants

Government grants and subsidies are recognized when there
is reasonable assurance that the Company will comply with the
conditions attached to them and the grants / subsidy will be
received. Other government grants related to assets, including
non-monetary grants, are initially recognised as deferred
income at fair value if there is reasonable assurance that they will
be received, and the Company will comply with the conditions
associated with the grant. Grants related to the acquisition
of assets are recognised in profit or loss as other income on a
systematic basis over the useful life of the asset. Export benefits
are accounted for in the year of exports based on eligibility and
when there is no uncertainty in receiving the same.

Other government grants and subsidies are recognised as
income over the periods necessary to match them with
the costs for which they are intended to compensate, on a
systematic basis.

3.17 Employee benefit expenses

Employee benefits consist of contribution to provident fund,
superannuation fund, gratuity fund, compensated absences,
supplemental pay and ex-director pension liability.

3.17.1 Post-employment benefit plans
Defined Contribution plans

A defined contribution plan is a post-employment
benefit plan where the Company's legal or constructive
obligation is limited to the amount that it contributes to
a separate legal entity. Payments to defined contribution
retirement benefit scheme for eligible employees in
the form of Superannuation Fund and provident fund
are expensed as an employee benefits expense in the
statement of profit and loss in period in which the related
service is provided by the employee. Such benefits
are classified as Defined Contribution Schemes as the
Company does not carry any further obligations, apart
from the contributions made.

Defined benefit plans

The Company operates various defined benefit plans-
Employee's provident fund, gratuity fund, supplemental
pay and ex-director pension liability.

The interest income / (expense) are calculated by
applying the discount rate to the net defined benefit
liability or asset. The net interest income / (expense) on
the net defined benefit liability or asset is recognised in
the Statement of Profit and loss.

Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly
in other comprehensive income. They are included in
retained earnings in the Statement of Changes in Equity
and in the Balance Sheet.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognised immediately in profit or loss
as past service cost.

3.17.2 Other long term employee benefit

Accumulated absences expected to be carried forward
beyond twelve months is treated as long-term employee
benefit for measurement purposes. The Company's net
obligation in respect of other long-term employee benefit
of accumulating compensated absences is the amount of
future benefit that employees have accumulated at the
end of the year. That benefit is discounted to determine
its present value. The obligation is measured annually
by a qualified actuary using the projected unit credit
method. Remeasurements are recognised in profit or loss
in the period in which they arise.

The obligations are presented as current liabilities in
the balance sheet if the Company does not have an
unconditional right to defer the settlement for at least
twelve months after the reporting date.

3.17.3 Short term employee benefit

Compensated absences which accrue to employees and
which can be carried to future periods but are expected
to be encashed or availed in twelve months immediately
following the year end are reported as expenses during
the year in which the employees perform the services
that the benefit covers and the liabilities are reported at
the undiscounted amount of the benefits after deducting
amounts already paid.

Where there are restrictions on availment of encashment
of such accrued benefit or where the availment or
encashment is otherwise not expected to wholly occur
in the next twelve months, the liability on account of
the benefit is actuarially determined using the projected
unit credit method.

3.18 Borrowing cost

Borrowing costs are interest and ancillary costs incurred in
connection with the arrangement of borrowings. Borrowing
costs are recognised in the Statement of Profit and Loss within
Finance costs of the period in which they are incurred.

3.19 Segment reporting

Operating segments are defined as components of an
enterprise for which discrete financial information is available
that is evaluated regularly by the chief operating decision
maker, in deciding how to allocate resources and assessing
performance. The Company's chief operating decision maker
is the Managing Director & CEO of the Company.

Segment revenue, segment expenses, segment assets and
segment liabilities have been identified to segments on the
basis of their relationship to the operating activities of the
segment. Inter segment revenue is accounted on the basis of
transactions which are primarily determined based on market
/ fair value factors. Revenue, expenses, assets and liabilities
which relate to the Company as a whole and are not allocable
to segments on a reasonable basis have been included under
"unallocated revenue / expenses / assets / liabilities".

3.20 Income tax

Income tax expense comprises current tax expense and
the net change in the deferred tax asset or liability during
the year. Current and deferred taxes are recognised in the
Statement of Profit and Loss, except when they relate to a
business combination, or 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.

As per the Company's assessment, there are no material
income tax uncertainties over income tax treatments.

Current tax

Current tax is measured at the amount of tax expected to be
payable on the taxable income for the year as determined in
accordance with the provisions of the Income Tax Act, 1961.

Current tax comprises the expected tax payable or receivable
on the taxable income or loss for the year and any adjustment
to the tax payable or receivable in respect of previous years.
The amount of current tax payable or receivable is the best
estimate of the tax amount expected to be paid or received
that reflects uncertainty related to income taxes, if any. It is
measured using tax rates enacted or substantively enacted at
the reporting date.

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

Deferred tax

Deferred tax assets and liabilities are recognised for deductible
and taxable temporary differences arising between the
tax base of assets and liabilities and their carrying amount,
except when the deferred income tax arises from the initial
recognition of an asset or liability in a transaction that is not
a business combination and affects neither accounting nor
taxable profit or loss at the time of the transaction.

Temporary differences in relation to a right-of-use asset and a
lease liability for a specific lease are regarded as a net package
(the lease) for the purpose of recognising deferred tax.

Deferred tax assets are recognised only to the extent that it
is probable that either future taxable profits or reversal of
deferred tax liabilities will be available, against which the
deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilised.

The carrying amount of a deferred tax asset shall be reviewed
at the end of each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will
be available to allow all or part of the deferred income tax asset
to be utilised.

Deferred tax assets and liabilities are measured using the tax
rates and tax laws that have been enacted or substantively
enacted by the end of the reporting period and are expected
to apply when the related deferred tax asset is realised or the
deferred tax liability is settled.

Deferred tax assets and liabilities are offset when there is
a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the
same taxation authority.