B. Material Accounting Policies
(i) Property, Plant and Equipment
The company consider the previous GAAP carrying value of all its Properties, Plants and Equipment as deemed
cost at the transition date i.e. 1st April 2023.
Property, Plant and Equipment acquired after the transition dates are stated at cost of acquisition inclusive
of incidental expenses related thereto less accumulated depreciation. Subsequent costs are included in the
asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the Company and the cost of the item can be
measured reliably.
An item of property, plant and equipment and any significant part initially recognized is de-recognized upon
disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising
on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the
carrying amount of the asset) is recognized in the statement of profit and loss, when the asset is de-recognized.
(ii) Depreciation/Amortisation
Depreciation on PPE is provided on straight line method at the rates determined based on the useful lives of
respective assets as prescribed in the Schedule II of the Companies Act, 2013 and/or useful life reviewed and
assessed by the Company based on technical evaluation of relevant class of assets,
Depreciation on fixed assets added/disposed-off/discarded during the year is provided on pro-rata basis
with respect to the month of addition/disposal/discarding.
(iii) Non-Current Investments:
Investment are valued at fair market value on the reporting date either through other comprehensive income,
or through the Statement of Profit and Loss.
(iv) Capital Work in Progress
Capital work-in-progress is stated at cost less accumulated impairment loss, if any, which includes expenses
incurred during construction period, interest on amount borrowed for acquisition of qualifying assets and
other expenses incurred in connection with project implementation in so far as such expenses relate to the
period prior to the commencement of commercial production
(v) Valuation of Inventories:
Inventories of Raw Materials, Work-in-Progress, Stores and spares, Finished Goods & packing material are
stated 'at cost or net realisable value, whichever is lower'. Cost comprises all cost of purchase, cost of conversion
and other costs incurred in bringing the inventories to their present location and condition. Cost of stores
and spares packing material and raw material has been computed on weighted average basis. Cost for the
purpose of the valuation of finished goods and semi-finished goods are computed on cost of raw material
and related overhead.
(vi) Revenue Recognition:
The company follows Ind AS 115" Revenue from contracts with customers" in respect of recognition of
revenue from contracts with customers which provides a control-based revenue recognition. Revenue is
recognised at the fair value of the consideration received or receivable. The amount disclosed as revenue is
net of returns, trade discounts and taxes & duties.
The company recognizes revenue when the control of goods or services underlying the particular performance
obligation is transferred to customers and the amount of revenue can be measured reliably and it is probable
that the economic benefits associated with the transaction will flow to the entity.
a) Sales of goods
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the
goods are transferred to the buyer and the entity retains neither continuing managerial involvement to
the degree usually associated with ownership nor effective control over the goods sold.
b) Other Operating Revenue Export Incentives
Revenue in respect of the export incentives is recognized on post export basis. Duty Drawback benefits
are accounted for on accrual basis.
c) Interest:
Interest income is recognised on a time proportion basis taking into account the amount outstanding
and the rate applicable.
d) Insurance and Other Claim: -
Revenue in respect of claims is recognized when no significant uncertainty exists with regard to the
amount to be realized and the ultimate collection thereof.
vi) Employee benefits
Defined Contribution Plan
The Company makes regular contributions to recognised Provident Fund which are recognised as expense
in the Statement of Profit and Loss during the period in which the employee renders the related service.
Defined Benefit Scheme
Gratuity and Compensated Absences benefits, payable as per Company's schemes are considered as defined
benefit schemes and are charged to the Statement of Profit and Loss on the basis of actuarial valuation
carried out at the end of each financial year by independent actuaries using Projected Unit Credit Method.
For the purpose of presentation of defined benefit plans, the allocation between short term and long-term
provisions is made as determined by the independent actuaries. Actuarial gains and losses are recognised in
the Other Comprehensive Income.
Ex-gratia or other amount disbursed on account of selective employee's separation scheme or otherwise are
charged to the Statement of Profit and Loss as and when incurred/determined.
(vii) Foreign Currency transactions:
Transactions in foreign currencies are recognised at the prevailing exchange rates on the transaction dates.
Realised gains and losses on settlement of foreign currency transactions are recognised in the Statement of
Profit and Loss.
Monetary foreign currency assets and liabilities at the year-end are translated at the year-end exchange
rates and the resultant exchange differences are recognised in the Statement of Profit and Loss.
(viii) Borrowing Costs:
Borrowing costs include interest, other costs incurred in connection with borrowing and interest expense
calculated using the effective interest method as described in Ind AS 109, Financial Instruments.
Borrowing Costs that are directly attributable to the acquisition, construction or production of a qualifying
asset form part of the cost of that asset. A qualifying asset is an asset that necessarily takes substantial
period of time to get ready for its intended use or sale. Other borrowing costs are expensed to the Statement
of Profit and Loss in the period in which they are incurred.
Ancillary costs incurred in connection with the arrangement of borrowings are adjusted with the proceeds of
the borrowings.
(ix) Income Taxes:
Tax expense comprises current income tax and deferred tax. Current income tax expense is measured at the
amount expected to be paid to the taxation authorities in accordance with the governing provisions of the
income tax red at the amount tax laws used to compute the amount are those that are enacted or substantively
enacted, at the reporting date.
(x) Deferred tax:
Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred
tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively
enacted at the reporting date.
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available
against which the deductible temporary differences, the carry forward of unused tax credits and unused tax
losses can be utilised. Income tax (Current and Deferred) relating to items recognised in the Statement of
Profit and Loss except to the extent it relates to the items recognised directly in equity or other comprehensive
income
Current tax assets and Current tax liabilities are offset, if a legally enforceable right exists to set of the
recognised amounts and where it intends either to settle on a net basis, or to realise the asset and settle the
liability simultaneously.
(xi) MAT:
Credit of MAT is recognised as an asset only when and to the extent there is convincing evidence that the
Company will pay normal income tax during the specified period, i.e. the period for which MAT credit is
allowed to be carried forward. In the year in which the MAT credit becomes eligible to be recognised as an
asset, the said asset is created by way of a credit to the profit and loss account and shown as MAT
credit entitlement.
(xii) Impairment of Non-Financial Assets:
The Management periodically assesses using external and internal sources whether there is any indication
that an asset may be impaired. Impairment of an asset occurs where the carrying value exceeds the present
value of the cash flow expected to arise from the continuing use of the asset and its eventual disposal. A
provision for impairment loss is made when the recoverable amount of the asset is lower than the carrying
amount.
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