STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES:
a. Basis of Accounting:
These financial statements have been prepared under the historical cost convention on the accrual basis.
The financial statements are presented in Indian Rupees which is the Company’s functional and
presentation currency.
b. Revenue Recognition:
Revenue is measured at the fair value of the consideration received or receivable. The Company
recognizes revenues on sale of products, net of discounts, rebates granted, returns, GST and duties when
the products are delivered to customer or when delivered to a carrier, which is when significant risks
and rewards of ownership pass to the customer. Revenue from sale of by-products are included in
revenue.
c. Property, Plant & Equipment:
On transition to Ind AS, the Company has adopted optional exception under Ind AS 101 to measure
Property, Plant and Equipment at carrying value under previous GAAP. Consequently the carrying
value has been assumed to be deemed cost of Property, Plant and Equipment on the date of transition.
Subsequently Property, Plant and Equipment are stated at cost less accumulated depreciation and
impairment losses, if any. Costs include costs of acquisitions or constructions including incidental
expenses thereto, borrowing costs, and other attributable costs of bringing the asset to its working
condition for its intended use and are net of available duty/tax credits.
Subsequent expenditure relating to property, plant and equipment is capitalized only when it is probable
that future economic benefits associated with these will flow to the Company and the cost of the item
can be measured reliably.
The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively.
d. Capital work-in-progress:
Expenditure related to and incurred on implementation of new/expansion-cum-modernisation and up
gradation of projects is included under capital work-in-progress until the relevant assets are ready for its
intended use.
e. Intangible Assets :
Intangible assets as defined IND AS 38, are initially measured at cost. Intangible assets acquired in a
business combination are recognised at fair value at the acquisition date. Subsequently, intangible assets
are carried at cost less any accumulated amortisation and accumulated impairment losses, if any. The
useful lives of intangible assets are assessed as either finite or indefinite.
f. Depreciation:
Depreciation is systematically allocated over the useful life of an asset as specified in Part C of
Schedule II of Companies Act, 2013.
g. Financial Assets & Financial Liabilities:
Financial assets are recognised when the Company becomes a party to the contractual provisions of the
instrument.
Financial liabilities are recognised when the Company becomes a party to the contractual provisions of
the instrument
h. Inventories:
Inventories are stated at the lower of cost and net realisable value.
Cost of raw materials include cost of purchase and other costs incurred in bringing the inventories to
their present location and condition. Cost of finished goods include cost of direct materials and labour
and a proportion of manufacturing overheads based on the normal operating capacity. Costs of
inventories are determined on weighted average basis.
Net realisable value represents the estimated selling price for inventories less all estimated costs of
completion and costs necessary to make the sale.
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