• Net defined benefit asset/liability which
is measured at Fair value of plan assets
less present value of defined benefit
obligations

• Investment in bonds is measured at
amortised cost

• Investment in equity shares, other than
investment in subsidiaries is measured at
fair value

• Certain financial assets and financial
liabilities that are measured at fair value /
amortized cost.

(b) Current and non-current classification

The Company has ascertained its operating

cycle as twelve months for the purpose of

Current / Non-Current classification of its

Assets and Liabilities.

For the purpose of Balance Sheet, an asset is

classified as current if:

(i) It is expected to be realized, or is intended
to be sold or consumed, in the normal
operating cycle; or

(ii) It is held primarily for the purpose of
trading; or

(iii) It is expected to realize the asset within
twelve months after the reporting period;
or

(iv) The asset is a cash or cash equivalent
unless it 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.

Similarly, a liability is classified as current if:

(i) It is expected to be settled in the normal
operating cycle; or

(ii) It is held primarily for the purpose of
trading; or

(iii) It is due to be settled within twelve months
after the reporting period; or

(iv) The Company does not have an
unconditional right to defer the settlement
of the liability for at least twelve months
after the reporting period. Terms of
liability that could result in its settlement
by the issue of equity instruments at the

option of the counterparty does not affect
this classification.

All other liabilities are classified as non¬
current. Deferred tax assets and liabilities
are classified as noncurrent only.

(c) Rounding off amounts

(i) The financial statements are presented
in Indian Rupees, which is the functional
currency of the Company and the currency
of the primary economic environment in
which the Company operates.

(ii) Figures have been rounded off in decimals
to the nearest ' in lakhs, unless otherwise
stated. All amounts disclosed in the
financial statements and notes have been
rounded off in decimals to the nearest
lakhs as per the requirement of Schedule
III, unless otherwise stated.

(ii) Use of Estimates

The preparation of financial statements
is in conformity with Indian Accounting
Standards (Ind AS) notified under the
Companies (Indian Accounting Standards)
Rules, 2015 (as amended from time to time)
and presentation requirements of Division
II of Schedule III to the Companies Act,
2013 which require management to make
estimates and assumptions that affect the
reported amounts of assets and liabilities
and disclosure of contingent liabilities as
at the date of the financial statements
and the results of operations during
the reporting period. Although these
estimates are based upon management's
best knowledge of current events and
actions, actual results could differ from
these estimates.

Uncertainty about these assumptions
and estimates could result in outcomes
that require a material adjustment to the
carrying amount of assets or liabilities
affected in future periods.

Estimates and judgments are continually
evaluated and are based on historical
experience and other factors, including
expectations of future events that are
believed to be reasonable under the
circumstances.

The estimates and underlying
assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates
are recognised in the period in which
the estimate is revised if the revision
affects only that period, or in the period
of the revision and future period, if the
revision affects current and future period.
Revisions in estimates are reflected in the
financial statements in the period in which
changes are made and, if material, their
effects are disclosed in the notes to the
financial statements.

The Company makes estimates and
assumptions concerning the future. The
resulting accounting estimates will, by
definition, seldom equal the related actual
results. The estimates and assumptions
that may have a significant risk of causing
a material adjustment to the carrying
amounts of assets and liabilities within
the next financial year are summarised
below:

a) Classification of legal matters and tax
litigation

Management judgement is required
for estimating the possible outflow
of resources, if any, in respect of
contingencies/ claims/ litigations against
the Company as it is not possible to
predict the outcome of pending matters
with accuracy.

b) Defined benefit obligations

The cost of defined benefit plan and
present value of such obligation are
determined using actuarial valuation.
An actuarial valuation involves making
various assumptions that may differ from
actual developments in the future. These
include the determination of the discount
rate, future salary increases, mortality
rates and attrition rate. Due to the long¬
term nature of the plan, such estimates
are subject to significant uncertainty.
All assumptions are reviewed at each
reporting date.

c) Useful life of property, plant and
equipment

The determination of depreciation and
amortization charge depends on the

useful lives for which judgements and
estimations are required. The residual
values, useful lives, and method of
depreciation of property, plant and
equipment and intangible assets are
reviewed at each financial year end and
adjusted prospectively, if appropriate.

d) Leases Ind AS 116

The Company has exercised judgement
in determining the lease term as the non¬
cancellable term of the lease, together
with the impact of options to extend or
terminate the lease if it is reasonably
certain to be exercised.

Where the implicit rate in the lease is not
readily available, an incremental borrowing
rate is applied. This incremental borrowing
rate reflects the rate of interest that the
lessee would have to pay to borrow over
a similar term, with a similar security, the
funds necessary to obtain an asset of a
similar nature and value to the right of-use
asset in a similar economic environment.
Determination of the incremental
borrowing rate requires estimation.

e) Fair Value Measurement of Financial
Instruments

When the fair values of financial assets
and financial liabilities recorded in the
balance sheet cannot be measured based
on quoted prices in active markets, their
fair value is measured using valuation
techniques including the Discounted Cash
Flow model / Adjusted Net Assets Value
method. The inputs to these models are
taken from observable markets where
possible, but where this is not feasible,
a degree of judgement is required in
establishing fair values. Judgements
include considerations of inputs such as
liquidity risk, credit risk and volatility.

f) Discounts / rebate to customers

The Company provides discount and
rebates on sales to certain customers.
Revenue from these sales is recognised
based on the price charged to the
customer, net of the estimated pricing
allowances, discounts, rebates, and other
incentives. In certain cases, the amount
of these discount and rebates are not

determined until claims with appropriate
evidence is presented by the customer
to the Company, which may be some
time after the date of sale. Accordingly,
the Company estimates the amount
of such incentives basis the terms of
contract, incentive schemes, historical
experience adjusted with the forward
looking, business forecast and the current
economic conditions. To estimate the
amount of incentives, the Company uses
the most likely method. Such estimates
are subject to the estimation uncertainty.

g) Physical verification of Inventory

Bulk inventory for the Company primarily
comprises of coal, fly ash and clinker
which are primarily used during the
production process at the manufacturing
locations. Determination of physical
quantities of bulk inventories is done
based on volumetric measurements and
involves special considerations with
respect to physical measurement, density
calculation, moisture, etc. which involve
estimates / judgments.

h) Deferred Tax Assets

The recognition of deferred tax assets
requires assessment of whether it is
probable that sufficient future taxable
profit will be available against which
deferred tax asset can be utilized. The
Company reviews at each balance sheet
date the carrying amount of deferred tax
assets.

(iii) Foreign Currency Transactions and Balances

Items included in the financial statements of
the Company are measured using the currency
of the primary economic environment in which
the entity operates ('the functional currency').
The Company's standalone financial statements
are presented in Indian Rupees which is the
Company's functional currency.

Transactions in foreign currencies entered into
by the Company are accounted at the exchange
rates prevailing on the date of the transactions.
Exchange differences arising on settlement /
restatement of short-term foreign currency
monetary assets and liabilities of the company
are recognized as income or expenses in
the Statement of Profit and Loss All foreign

exchange gains and losses are presented in
the Statement of Profit and Loss on a net basis
within other income or other expenses.

Non-monetary assets and liabilities
denominated in foreign currencies that are
measured at fair value are retranslated to the
functional currency at the exchange rate at the
date that the fair value was determined. Non¬
monetary assets and liabilities denominated in
a foreign currency and measured at historical
cost are translated at the exchange rate
prevalent at the date of transaction.

(iv) Property, plant and equipment

Property, plant and equipment are stated at their
cost of acquisition, installation or construction
(net of any recoverable amount, wherever
applicable) less accumulated depreciation,
amortization and impairment losses if any,
except freehold land which is carried at cost.
Cost comprises the purchase price, installation
and attributable cost of bringing the asset to
working condition for its intended use.

Subsequent expenditures 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. When significant
parts of plant and equipment are required to
be replaced the Company depreciates them
separately based on their specific useful lives.
All other repairs and maintenance are charged
to the statement of profit and loss during the
reporting period in which they are incurred.

Capital Work in Progress

Capital work in progress is carried at cost and
includes any directly attributable cost incurred
during construction period.

Property, plant and equipment not ready for
their intended use as on the balance sheet date
are disclosed as "Capital work-in-progress".
Such items are classified to the appropriate
category of property, plant and equipment
when completed and ready for their intended
use. Advances given towards acquisition/
construction of property, plant and equipment
outstanding at each balance sheet date are
disclosed as Capital Advances under "Other
non-current assets"

Expenditure during construction period

In case of new projects and substantial expansion
of existing units, expenditure incurred including
trial production expenses net of revenue earned,
and attributable interest and financing costs, prior
to commencement of commercial production/
completion of project are capitalised.

Depreciation

Depreciation on Property, plant and equipment is
provided on Written Down Value (WDV) method in
accordance with the provisions of Schedule II to
the Companies Act, 2013 and considering the useful
lives for computing depreciation specified in Part 'C'
thereof or as reassessed by the company based on
technical evaluation except in case of following:

• Corporate Office building, which is owned
by the company and depreciated using the
straight- line method over the period of lease of
land on which it is constructed.

• Mines development expenses incurred on free
hold mining land are depreciated in proportion
of actual quantity of minerals extracted to
the estimated quantity of extractable mineral
reserves.

• Railway sidings the ownership of which vests
with the Railway authorities are depreciated
over the period of agreement with Railway
Authorities.

Depreciation is provided on components that have
homogenous useful lives. In respect of an asset for
which impairment loss is recognized, depreciation
is provided on the revised carrying amount of the
assets over its remaining useful life. Depreciation
method, useful life and residual values are reviewed
at each financial year end and adjusted if appropriate.
Estimated useful lives so determined are as follows:

Derecognition of property plant and equipment

An item of Property, Plant and Equipment and any
significant part initially recognised is derecognised
upon disposal or when no future economic benefits

are expected from its use or disposal. Any gain or
loss arising on derecognition of the asset (calculated
as the difference between the net disposal proceeds
and the carrying amount of the asset) is recognised
in the Statement of Profit and Loss when the asset is
derecognised.

(v) Intangible Asset

An intangible asset is recognized 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.

Amortization of intangible assets

The amortization amount of an intangible asset is
allocated over its estimated useful life. Expenditure
on purchased software and IT related expenditure is
written off over a period of three years.

Impairment of non-financial assets

The carrying amounts of assets are reviewed at
each Balance Sheet date if there is any indication
of impairment based on internal / external factors.
An impairment loss will be recognized wherever the
carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is greater of the
asset's net selling price and value in use. In assessing
value in use, the estimated future cash flows are
discounted to the present value by using weighted
average cost of capital. A previously recognized
impairment loss is further provided or reversed
depending on changes in circumstances.

(vi) Research and Development Expenditure

Research expenditure is recognised as an expense
when it is incurred. Development costs are
capitalised only after the technical and commercial
feasibility of the asset for sale or use has been
established. Thereafter, all directly attributable
expenditure incurred to prepare the asset for its
intended use are recognised as the cost of such
assets.

(vii) Lease

As a Lessee:

The Company applies a single recognition and
measurement approach for all leases, except for
short-term leases and leases of low-value assets.
The Company recognizes lease liabilities to make
lease payments and right-of-use assets representing
the right to use the underlying assets.

The Company recognizes right-of-use assets at the
commencement date of the lease (i.e., the date the

underlying asset is available for use). Right-of-use
assets are initially measured at cost. The cost of right-
of-use assets includes the amount of lease liabilities
recognized, initial direct costs incurred, an estimate
of costs to be incurred in dismantling and removing
or restoring the underlying asset and lease payments
made at or before the commencement date less any
lease incentives received. After the commencement
date, the Right of use assets are measured applying
the Cost model. They are subsequently measured
at cost, less any accumulated depreciation,
adjustments for any remeasurement of the lease
liabilities and impairment losses. Right-of-use
assets are depreciated on a straight-line basis over
the shorter of the lease term and the estimated
useful lives of the assets.

At the commencement date of the lease, the
company recognizes lease liabilities measured at
the present value of lease payments to be made over
the lease term. The lease payments include fixed
payments (including in substance fixed payments)
less any lease incentives receivable, variable lease
payments that depend on an index or a rate, and
amounts expected to be paid under residual value
guarantees.

In calculating the present value of lease payments,
the company uses its incremental borrowing rate at
the lease commencement date because the interest
rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made.
In addition, the carrying amount of lease liabilities
is re-measured if there is a modification, a change
in the lease term, a change in the lease payments
(e.g., changes to future payments resulting from a
change in an index or rate used to determine such
lease payments) or a change in the assessment of an
option to purchase the underlying asset.

As a Lessor:

Lease income from operating leases where the
Company is a lessor is recognised in income on a
straight-line basis over the lease term unless the
receipts are structured to increase in line with
expected general inflation to compensate for the
expected inflationary cost increases. The respective
leased assets are included in the balance sheet
based on their nature.

Leases are classified as finance leases when
substantially all of the risks and rewards of ownership
transfer from the Company to the lessee. Amounts

due from lessees under finance leases are recorded
as receivables at the Company's net investment
in the leases. Finance lease income is allocated
to accounting periods so as to reflect a constant
periodic rate of return on the net investment
outstanding in respect of the lease. Operating
lease payments are recognised as an income in the
statement of profit and loss on a straight-line basis
over the lease term, unless the receipt from lessee is
structured to increase in line with expected general
inflation and compensate for the lessor's expected
inflation cost increase.

(viii) Government Grants and Subsidies

Government grants and subsidies are recognized
when there is reasonable certainty that the same
will be received. Revenue grants in the nature of
recoupment/ reimbursement of any particular
item of expenses are recognized in the Statement
of Profit and Loss as deduction from related item
of expenditure. Grants related to assets which are
recognized in the Balance Sheet as deferred income,
are recognized to the Statement of Profit and Loss on
a systematic basis over the useful life of the related
assets by netting off with the related expense.

(ix) Inventories

Raw materials, stores and spare parts, fuel and
packing material:

Raw materials, stores and spares and fuel and
packing material are valued at lower of cost and net
realisable value. Cost includes purchase price, other
costs incurred in bringing the inventories to their
present location and condition, and taxes for which
credit is not available. However, materials and other
items held for use in the production of inventories are
not written down below cost if the finished products
in which they will be incorporated are expected to be
sold at or above cost. Cost is determined on weighted
average basis.

Work-in-progress, finished goods and stock in
trade:

Work-in-progress, finished goods and stock in
trade are valued at lower of cost and net realisable
value. Cost includes direct materials and labour and
a proportion of manufacturing overheads based on
normal operating capacity, but excluding borrowing
costs. Cost of Stock-in-trade includes cost of
purchase and other cost incurred in bringing the
inventories to the present location and condition.
Cost is determined on weighted average basis.

Net realisable 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.

(x) Investment in Subsidiaries

The Company's investments in its subsidiaries are
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 subsidiaries or the
loss of significant influence over associates, the
difference between net disposal proceeds and the
carrying amounts are recognized in the statement of
profit and loss.

a) Investments and other financial assets
Classification

The Company classifies its financial assets in
the following measurement categories:

• those to be measured subsequently at fair
value (either through other comprehensive
income, or through profit or loss), and

• those measured at amortised cost

The classification depends on the Company's
business model for managing the financial
assets and the contractual terms of cash flows.

Measurement

At initial recognition, the company measures
a financial asset at its fair value. Transaction
costs of financial assets carried at fair value
through profit or loss are expensed in profit or
loss.

Debt instruments

Subsequent measurement of debt instruments
depends on the Company's business model
for managing the asset and the cash flow
characteristics of the asset. The company
classifies its debt instruments into the following
categories:

• Amortised cost: Assets that are held
for collection of contractual cash flows
where those cash flows represent solely
payments of principal and interest are
measured at amortised cost. Interest
income from these financial assets is
included in finance income using the
effective interest rate method.

• Fair value through other comprehensive
income (FVOCI): Assets that are held for
collections of contractual cash flows and
for selling the financial assets, where
the assets' cash flows represent solely
payments of principal and interest, are
measured at fair value through other
comprehensive income (FVOCI). Interest
income from these financial assets
is included in other income using the
effective interest rate method.

• Fair value through profit or loss (FVTPL):

Assets that do not meet the criteria for
amortised cost or FVOCI are measured at
fair value through profit or loss. Interest
income from these financial assets is
included in other income.

Equity instruments

The Company subsequently measures all equity
investments (except subsidiary, associate and
joint venture) at fair value through profit or loss.
However, where the Company's management
makes an irrevocable choice on initial
recognition to present fair value gains and
losses on specific equity investments in other
comprehensive income, there is no subsequent
reclassification of fair value gains and losses to
profit or loss.

Impairment of financial assets

The Company measures the expected credit
loss associated with its assets based on
historical trend, industry practices and the
business environment in which the entity
operates or any other appropriate basis. The
impairment methodology applied depends on
whether there has been a significant increase
in credit risk.

Derecognition of financial assets

A financial asset is derecognised only when

• The company has transferred the rights
to receive cash flows from the financial
asset, or

• Retains the contractual rights to receive
the cash flows of the financial asset, but
assumes a contractual obligation to pay
the cash flows to one or more recipients.

Where the Company has not transferred
substantially all risks and rewards of ownership
of the financial asset, the financial asset is not

derecognised.

Where the Company has neither transferred
a financial asset nor retains substantially all
risks and rewards of ownership of the financial
asset, the financial asset is derecognised if
the company has not retained control of the
financial asset.

(xi) Trade receivables

Trade receivables that do not contain any significant
financing component are recognized initially at
transaction price. Upon initial recognition of a
receivable from a contract with a customer, any
difference between the measurement of the
receivable in accordance with Ind AS 109 and the
corresponding amount of revenue recognised shall
be presented as an expense. Subsequently, the trade
receivables are measured at cost less expected credit
losses. The Company calculates the expected credit
losses on trade receivables using a provision matrix
on the basis of its historical credit loss experience.
The Company follows the simplified approach
permitted by Ind AS 109 - Financial Instruments for
recognition of impairment loss allowance. The loss
allowance is measured at an amount equal to lifetime
expected credit losses.

(xii) Cash and Cash Equivalents

Cash and cash equivalents in the Balance Sheet
comprise cash at bank and in hand and demand
deposits with banks and other short-term highly liquid
investments/deposits that are readily convertible
into cash which are subject to insignificant risk of
changes in value with an original maturity of three
months or less.

(xiii) Financial liabilities

Initial recognition and measurement

The Company recognises all the financial liabilities
on initial recognition at fair value minus, in the case
of a financial liability not at fair value through profit or
loss, transaction costs that are directly attributable
to the acquisition or issue of the financial liability.

The Company's financial liabilities include trade and
other payables, loans and borrowings including bank
overdrafts.

Subsequent measurement

All the financial liabilities are classified as
subsequently measured at amortised cost, except
for those measured at fair value through profit or
loss.

De-recognition of financial liabilities

The Company de-recognises financial liabilities
when, and only when, the Company's obligations are
discharged, cancelled or they expire.

(xiv) Borrowings

Borrowings are initially recognised at fair value,
net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any
difference between the proceeds (net of transaction
costs) and the redemption amount is recognised in
profit or loss over the period of the borrowings using
the effective interest method.

Borrowings are removed from the Balance Sheet
when the obligation specified in the contract is
discharged, cancelled or expired. The difference
between the carrying amount of a financial liability
that has been extinguished or transferred to another
party and the consideration paid, including any
non-cash assets transferred or liabilities assumed,
is recognised in profit or loss as other income or
finance costs.

Borrowings are classified as current liabilities unless
the company has an unconditional right to defer
settlement of the liability for at least 12 months after
the reporting period. Where there is a breach of a
material provision of a long-term loan arrangement
on or before the end of the reporting period with
the effect that the liability becomes payable on
demand on the reporting date, the entity does not
classify the liability as current, if the lender agreed,
after the reporting period and before the approval
of the financial statements for issue, not to demand
payment as a consequence of the breach.

(xv) Borrowing Costs

Borrowing costs that are attributable to the
acquisition, construction or production of a
qualifying asset is capitalized as part of cost of such
asset till such time the asset is ready for its intended
use. A qualifying asset is an asset that necessarily
requires a substantial period of time to get ready
for its intended use. All other borrowing costs are
recognized as expense in the period in which they
are incurred. Borrowing cost includes exchange
differences arising from relevant foreign currency
borrowings to the extent that they are regarded as an
adjustment to the interest cost.

(xvi) Trade and other payables

These amounts represent liabilities for goods and
services provided to the company prior to the end

of financial year which are unpaid. The amounts
are unsecured and are usually paid within 30
days of recognition. Trade and other payables are
presented as current liabilities unless payment is
not due within 12 months after the reporting period.
They are recognised initially at their fair value and
subsequently measured at amortised cost using the
effective interest method.

(xvii) Offsetting financial instruments

Financial assets and liabilities are offset and the net
amount is reported in the balance sheet where there
is a legally enforceable right to offset the recognised
amounts and there is an intention to settle on a
net basis or realise the asset and settle the liability
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.

(xviii) Revenue Recognition

Revenue is recognised when (or as) the Company
satisfies a performance obligation by transferring
control of a promised good or service to a customer.
Revenue is measured at the amount of consideration
to which the Company expects to be entitled in
exchange for transferring the promised goods or
services, excluding amounts collected on behalf of
third parties.

The Company applies the five-step model prescribed
under Ind AS 115 for revenue recognition. Revenue is
recognised based on the transaction price, which is
allocated to the performance obligations identified
in the contract with the customer.

(A) Sale of Goods

Revenue from sale of goods is recognised at
a point in time when control of the goods is
transferred to the customer. The performance
obligations in sales contracts are generally
satisfied upon dispatch, delivery, customer
acceptance, or upon completion of such
other conditions as specified in the contract,
depending on the terms agreed with the
customer.

Revenue is measured at the transaction price
allocated to the performance obligation, net of
variable consideration. Variable consideration
includes trade discounts, rebates, sales
incentive schemes, volume discounts,
price concessions and similar items. Such
amounts are estimated using the method
that best predicts the consideration to which
the Company expects to be entitled and are
included in the transaction price only to the
extent that it is highly probable that a significant
reversal of cumulative revenue recognised will
not occur when the uncertainty associated
with the variable consideration is subsequently
resolved.

The transaction price is the amount of
consideration to which the Company expects
to be entitled in exchange for transferring the
promised goods to the customer.

The Company has elected to apply the
practical expedient provided under Ind AS 115
and does not adjust the promised amount of
consideration for the effects of a significant
financing component when the period between
transfer of control of the goods and payment by
the customer is expected to be one year or less.

Contract balances

Trade Receivables

A trade receivable is recognised when the
Company's right to consideration becomes
unconditional, that is, when only the passage
of time is required before payment of the
consideration is due.

Contract Assets

A contract asset represents the Company's
right to consideration in exchange for goods
transferred to a customer where such right
is conditional upon satisfaction of conditions
other than the passage of time. Contract assets
are reclassified to trade receivables when the
Company's right to consideration becomes
unconditional.

Contract Liabilities

A contract liability represents the Company's
obligation to transfer goods or services to
a customer for which consideration has
been received or is due from the customer.
Contract liabilities are recognised as revenue
when the related performance obligations are
satisfied and control of the goods or services is
transferred to the customer.

(B) Other Income

Interest income is recognized using the
effective interest rate (EIR) method.

Interest income from a financial asset is

recognized when it is probable that the
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 asset to that asset's net carrying
amount on initial recognition.

Dividend income is recognized when right to
receive dividend is established (provided that it
is probable that the economic benefits will flow
to the Company and the amount of income can
be measured reliably).

(xix) Employee Benefits

(i) Short-term obligations

Liabilities for wages and salaries, including
non-monetary benefits that are expected to
be settled wholly within 12 months after the
end of the period in which the employees
render the related service are recognised in
respect of employees' services up to the end
of the reporting period and are measured at
the amounts expected to be paid when the
liabilities are settled.

(ii) Defined Contribution Plan

Employees benefits in the form of provident
fund, ESIC and other labour welfare fund are
considered as defined contribution plan and
the contributions are charged to the Statement
of Profit and Loss for the year when the
contributions to the respective funds are due.

(iii) Defined Benefit Plan

Retirement benefits in the form of gratuity is
considered as defined benefits obligations and
are provided for on the basis of an actuarial
valuation, using the projected unit credit
method, as at the Balance Sheet date

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 and transferred to
retained earnings.

(iv) Other Long-term benefits

Long-term compensated absences are
provided for on the actuarial valuation, using

the projected unit credit method, as at the
Balance Sheet date. Remeasurement gains and
losses arising from experience adjustments
and changes in actuarial assumptions are
recognised in the period in which they occur, in
the statement of Profit or Loss.

(xx) Tax Expenses

Tax expense comprises current tax and deferred tax.
Provision for the current tax is made on the basis of
taxable income for the current accounting year in
accordance with the provisions of Income Tax Act,
1961.

Deferred tax is computed on temporary differences
arising between the tax bases of assets and liabilities
and their carrying amounts in the standalone financial
statements. Deferred tax is not accounted for if it
arises from initial recognition of an asset or liability
in a transaction other than a business combination
that at the time of the transaction affects neither
accounting profit nor taxable profit (tax loss).
Deferred tax is determined using tax rates (and laws)
that have been enacted or substantially 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 are recognised for all deductible
temporary differences and unused tax losses only
if it is probable that future taxable amounts will be
available to utilise those temporary differences and
losses.

Deferred tax liabilities are not recognised for
temporary differences between the carrying amount
and tax bases of investments in subsidiaries,
branches and associates and interest in joint
arrangements where the company is able to control
the timing of the reversal of the temporary
differences and it is probable that the differences
will not reverse in the foreseeable future.

Deferred tax assets are not recognised for temporary
differences between the carrying amount and tax
bases of investments in subsidiaries, branches and
associates and interest in joint arrangements where
it is not probable that the differences will reverse in
the foreseeable future and taxable profit will not be
available against which the temporary difference can
be utilised.

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.

Current tax assets and tax liabilities are offset where
the entity has a legally enforceable right to offset and
intends either to settle on a net basis, or to realise
the asset and settle the liability simultaneously.

Current and deferred taxes are recognised in
the statement of profit and loss, except to the
extent that they relate to items recognised in
other comprehensive income or directly in equity.
In this case, the taxes are recognised in other
comprehensive income or directly in equity,
respectively.

The deferred tax in respect of temporary differences
which originate during the tax holiday period and
is likely to reverse during the tax holiday period, is
not recognized to the extent income is subject to
deduction during the tax holiday period as per the
requirements of the Income Tax Act.

Minimum Alternate Tax credit is recognised as
deferred tax asset only when and to the extent there
is convincing evidence that the Company will pay
normal income tax during the specified period. Such
asset is reviewed at each Balance Sheet date and the
carrying amount of the MAT credit asset is written
down to the extent there is no longer convincing
evidence to the effect that the Company will pay
normal income tax during the specified period.

(xxi) Earnings Per Share

Basic earnings per share are calculated by dividing
the net profit or loss before other comprehensive
income for the period attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the period.

For the purpose of calculating diluted earnings
per share, the net profit or loss before other
comprehensive income for the period attributable
to equity shareholders and the weighted average
number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity
shares.