MATERIAL ACCOUNTING POLICIES

1.1 Basis of preparation of standalone financial
statements:

The standalone financial statements have been
prepared on going concern basis and on accrual
method of accounting in accordance with Indian
Accounting Standards. Historical cost is used except
for certain financial assets and liabilities that are
measured at fair values at the end of each reporting
period, as explained in accounting policies below.
Historical cost is generally based on the fair value
of the consideration given in exchange for goods
and services. The standalone financial statements
are presented in Indian Rupees (‘' /INR/' ) and
all values are rounded to the nearest lakhs (INR
00,000), except when otherwise indicated.

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.

1.2 Use of estimates and judgments:

The preparation of the standalone financial
statements in conformity with recognition and
measurement principles of Ind AS requires
management of the Company to make estimates,
judgments and assumptions. These estimates,
judgments and assumptions affect the application
of accounting policies and the reported amounts of
assets and liabilities, the disclosures of contingent
assets and liabilities at the date of the standalone
financial statements and reported amounts of
revenues and expenses for the period presented.
Application of accounting policies that require
critical accounting estimates involving complex and
subjective judgments and the use of assumptions in
these standalone financial statements have been
disclosed below. Accounting estimates could change
from period to period and actual results could
differ from those estimates. Appropriate changes
in estimates are made as management becomes
aware of changes in circumstances surrounding
the estimates. Changes in estimates are reflected in
the standalone financial statements in the period
in which changes are made and, if material, their
effects are disclosed in the notes to the standalone
financial statements.

The areas involving significant estimates and
assumptions are as follows:

(i) Measurement of useful lives of Property, Plant
and Equipment and Intangible assets [Note
1.4(a) & (b), Note 2 & Note 5]

(ii) Estimation of Employee benefits (Defined
benefits) [Note 1.12(c), 1.12(e) & Note 44]

(iii) Impairment of assets [Note 1.10 and Note
1.17(viii)]

(iv) Estimation of taxes on income [Note 1.15 &
Note 19]

(v) Provisions and contingencies [Note 1.22, Note
47 and Note 37]

1.3 Current versus non-current classification:

The Company presents assets and liabilities in
the balance sheet based on current/ non-current
classification.

a An asset is treated as current when it is:

- Expected to be realised or intended to be sold
or consumed in normal operating cycle.

- Held primarily for the purpose of trading

- Expected to be realised within twelve months
after the reporting period, or

- Cash or Cash equivalent unless 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.
b A liability is treated as current when it is:

- Expected to be settled in normal operating
cycle

- Held primarily for the purpose of trading

- Due to be settled within twelve months after
the reporting period, or

- There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period

All other liabilities are classified as non-current.
c Deferred tax assets/ liabilities are classified as
non-current assets/ liabilities.
d Based on the nature of products/activities of the
Company and the normal time between acquisition
of the assets and the realisation in cash and cash
equivalents, the Company has determined its
operating cycle as 12 months for the purpose of
classification of its assets and liabilities as current
and non-current.

1.4 Critical Accounting Estimates:

a Property, Plant and Equipment:

Property, plant and equipment represent a
significant proportion of the asset base of the
Company. The charge in respect of periodic
depreciation is derived after determining an
estimate of an asset's expected useful life and
the expected residual value at the end of its life.
The useful lives and residual values of company's
assets are determined by management at the time
the asset is acquired and reviewed periodically,
including at each financial year end. The lives are
based on historical experience with similar assets
as well as anticipation of future events, which may
impact their life, such as changes in technology.

b Intangible Assets

The capitalisation of cost in intangible asset
under development is based on judgement of the
management that technological and economical
feasibility is confirmed and that the assets will
generate economic benefits in future. Based
on the evaluations carried out, the Company's
management has determined that there is no factor
which indicate that these assets have suffered any
impairment loss.

c Investment in subsidiaries

The Company reviews its carrying value of
investments carried at cost annually, or more
frequently when there is indication for impairment.
If the recoverable amount is less than its carrying
amount, the impairment loss is accounted for. The
management of the Company is confident that
the investment does not require further provision
for impairment based on the future projections.
On disposal of investments in Subsidiaries, the
difference between net disposal proceeds and the
carrying amounts are recognised in the statement
of profit and loss.

d Provision and Contingent liability

The Company reviews pending cases, claims by
third party and other contingencies, if any on
an on-going basis. For contingent losses that are
considered probable, estimated loss is recorded as
an accrual in standalone financial statements. A
disclosure for contingent liabilities is made where
there is a possible obligation or present obligation
that may probably not require an outflow of
resources. When there is a possible obligation or
present obligation where the likelihood of outflow
of resources is remote, no provision or disclosure

is made in the standalone financial statements.
Gain contingencies are not recognised until the
contingencies are resolved and the amounts are
received or recoverable.

e Provision for Credit loss

The Company reviews the position of trade
receivable and ascertains a provision for life time
credit loss after considering the industry and
economic conditions in which customer operate,
the profile of the customer and the past experience.

f Defined benefit plans

The cost of the defined benefit plan and other
postemployment benefits and the present value
of such obligations are determined using actuarial
valuations. 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 future pension
increases. Due to the complexities involved in
the valuation and its long-term nature, a defined
benefit obligation is sensitive to changes in these
assumptions. All assumptions are reviewed at each
reporting date.

1.5 Revenue Recognition:

The company recognises revenue, when or as
the entity satisfies a performance obligation by
transferring a promised goods or services to a
customer; i. e. when the customer is able to direct
the use of the transferred goods or services and
obtains substantially all of the remaining benefits,
provided a contract with enforceable rights and
obligations exists and amongst others collectability
of consideration is probable taking into account our
customer's creditworthiness. With regards to the
sale of products (a) where delivery is not considered
to have occurred, and therefore no revenues are
recognised, until the customer has taken title to
the products and assumed the risks and rewards of
ownership of the products specified in the purchase
order or sales agreement. (b) Where dispatch has
not been done but tests have been completed as
per the terms agreed with the customer, revenue
is the transaction price the company expects to be
entitled to. Consideration is adjusted for the time
value of money if the period between the transfer
of goods or services and the receipt of payment
is substantial and there is a significant financing
benefit either to the customer or Company. If a
contract contains more than one distinct good or

service, the transaction price is allocated to each
performance obligation based on relative stand¬
alone selling prices. If stand-alone selling prices are
not observable, the Company reasonably estimates
those. Revenue is recognised for each performance
obligation either at a point in time or over the time.
Revenues from services:

Revenues are recognised over time on a straight¬
line basis or, if the performance pattern is other
than straight-line, as services are provided, i. e. the
progress towards complete satisfaction using input
method or output method.

Revenue recognised by the Company where
services are rendered to the customer and for
which invoice has not been raised (which we refer
as unbilled revenue) are classified as contract
assets. Amount collected from the customer and
services have not yet been rendered are classified
as contract liabilities.

Dividend Income:

Revenue is recognised when the Company's right to
receive the payment is established.

Interest Income:

Interest income is recognised using effective
interest rate method. The effective interest rate is
the rate that exactly discounts estimated future
cash receipts through the expected life of the
financial asset to the gross carrying amount of
financial asset. Interest income from financial asset
is recognised when it is probable that the economic
benefits will flow to the Company and the amount
of income can be measured reliably.

1.6 Export Incentives:

Export incentives are recognised in the statement
of profit and loss when the right to receive credit as
per the terms of the scheme is established in respect
of exports made and when there is no significant
uncertainty regarding the ultimate collection of the
relevant export proceeds.

1.7 Property, plant and equipment (PPE):

Initial Measurement:

Free hold land is carried at historical cost. All
other items of Property, Plant and Equipment's are
carried at cost of acquisition/construction net of
recoverable taxes, less accumulated depreciation/
amortisation and impairment losses, if any. The
cost includes directly attributable expenses
relating to the acquisition and bringing the assets

to the location and condition of use net of any sale
proceeds and finance cost till assets are put to use,
are capitalised. Stores, spares and parts which can
be used only in connection with an item of plant or
equipment and whose useful life is expected to be
irregular are capitalised and depreciated over the
useful life of the principal item of the relevant assets.
Subsequent expenditure relating to property,
plant and equipment is capitalised 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. Repairs and
maintenance costs are recognised in the statement
of profit and loss when incurred.

Interest cost incurred for constructed assets is
capitalised up to the date the asset is ready for
its intended use, based on borrowings incurred
specifically for financing the asset or the weighted
average rate of all other borrowings, if no specific
borrowings have been incurred for the asset.
Property, Plant and Equipment manufactured
internally are capitalised at Factory Cost incurred
up to the date the asset is ready for its intended use
Capital Work in Progress:

Property, Plant and Equipment which are not yet
ready for their intended use are carried at cost,
comprising direct cost and related incidental
expenses. Advances paid towards acquisition of
PPE outstanding at each balance sheet date are
classified as Capital advances under other non¬
current assets.

Depreciation and amortisation:

i. Depreciation on Property, Plant and
Equipments is provided using straight
line method (SLM) with reference to the
estimated useful life of the Property, Plant
and Equipment less its residual value as
prescribed under Schedule II of the Companies
Act 2013, or useful life of the asset as estimated
by the management, whichever is lower.
Property, Plant and Equipment costing below
' 5,000/- are depreciated fully. Depreciation
is charged for complete quarter on addition /
deletion.

ii. Freehold land is not depreciated.

iii. Depreciation is not recorded on capital work-
in-progress until construction and installation
are complete and the asset is ready for its
intended use.

Derecognition:

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 the disposal or retirement of an item
of PPE is determined as the difference between
the sales proceeds and the carrying amount
of the asset and is recognised in statement of
profit or loss.

1.8 Intangible Assets:

Intangible assets with finite lives that are acquired
are carried at cost or fair value as of the date
of acquisition, as applicable, less accumulated
amortisation and accumulated impairment losses,
if any. The estimated useful life and amortisation
method are reviewed at the end of each reporting
period, with the effect of any changes in estimate
being accounted for on a prospective basis.
Intangible assets with indefinite useful lives that
are acquired separately are carried at cost less
accumulated impairment losses.

Intangible assets consist of technical knowhow /
license fees / softwares which are amortised over
a period of 5 years on a straight-line basis being the
estimated useful life.

1.9 Research & Development

Expenditure on research activity undertaken is
charged to the Statement of Profit & Loss as and
when incurred during the year to their natural head
of accounts. The expenditure incurred includes cost
of materials, salaries & wage and other revenue
expenditure.

Development costs are capitalised only after the
technical and commercial feasibility of the asset for
sale or use has been established.

Capital Expenditure is categorised and disclosed
separately as Research & Development Property
Plant and Equipment and depreciation is charged
as disclosed in Sl. No.1.7 above.

1.10 Impairment of Assets:

a. Financial assets (other than at fair value):

The Company assesses at the end of each reporting
period, whether a financial asset or a group of
financial assets is impaired. Ind AS 109 requires
expected credit losses to be measured through a
loss allowance. The Company recognises lifetime
expected losses for all contract assets and / or all
trade receivables that do not constitute a financing
transaction. For all other financial assets, expected
credit losses are measured at an amount equal
to the 12 month expected credit losses or at an
amount equal to the life time expected credit losses
if the credit risk on the financial asset has increased
significantly since initial recognition.

b. Non-Financial Assets:

Property, plant and equipments and intangible
assets

Property, plant and equipment and intangible assets
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 (or CGU) is
estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced
to its recoverable amount. An impairment loss is
recognised in the statement of profit and loss.

1.11 Inventories:

Inventories are valued at lower of cost and net
realisable value. Raw materials and bought out
items are valued on first in first out basis and
includes material cost, carriage inward, insurance
and purchase related expenses. Cost in respect
of work in progress and finished goods include
appropriate portion of overheads. Net realisable
value represents the estimated selling price for

benefit obligation and the fair value of plan assets.
This cost is included in employee benefit expenses
in the statement of profit and loss.

Past service cost is recognised immediately in the
statement of profit and loss. The benefits obligation
in respect of gratuity recognised in the Balance
Sheet represents the present value of the defined
benefit obligation as adjusted for present value
plan assets including refunds and reductions if
any available as against future contributions to the
scheme.

d. Defined Contribution Plans:

The Company has contributed to provident fund
and employee state insurance scheme which is
defined contribution plan. The contribution paid/
payable under the scheme is charged to Statement
of Profit and loss during the year in which an
employee renders the related service. Company has
no further obligation beyond making the payment.

e. Termination benefits are recognised as an ex¬
pense as and when incurred.

1.13 Share based payments

The Company recognises compensation expense
relating to share-based payments in net profit
using fair-value in accordance with IND AS 102,
Share Based Payment. The estimated fair value
of awards is charged to income on straight line
basis over the requisite service period for each
separately vesting portion of the award as if the
award was in substance, multiple awards with a
corresponding credit to Employee Stock Option /
Rights outstanding Reserve.

The Company has created an Employee Stock
Options Trust (ESOP Trust) for providing share-
based payment to its employees. The Company
uses ESOP as a vehicle for distributing shares to
employees under the employee remuneration
schemes. The ESOP Trust buys shares of the
company from the market, for giving shares to
employees in addition to allotment of shares by the
Company as per the requirements of the scheme.
The Company treats ESOP as its extension and
shares held by ESOP are treated as treasury shares.
Treasury shares are recognised at cost of acquisition
and included under other equity. No gain or loss is
recognised in profit or loss on the purchase or issue
of the Company's own equity shares. Share options
exercised during the reporting period are deducted
from treasury shares.

1.14 Leases:

Company as a Lessee:

Contracts with third party, which give the company
the right of use in respect of an Asset, are accounted
in line with the provisions of Ind AS 116 - Leases,
if the recognition criteria as specified in the
Accounting standard are met.

Lease payments associated with Short terms leases
and Leases in respect of Low value assets are
charged off as expenses on straight line basis over
lease term or other systematic basis, as applicable.
At commencement date, the value of “right of use”
is capitalised at the present value of outstanding
lease payments plus any initial direct cost and
estimated cost, if any, of dismantling and removing
the underlying asset and presented as part of Plant,
property and equipment.

Liability for lease is created for an amount
equivalent to the present value of outstanding lease
payments and presented as Borrowing. Subsequent
measurement, if any, is made using Cost model.
Each lease payment is allocated between the
liability created and finance cost. The finance cost
is charged to the Statement of Profit and loss over
the lease period so as to produce a constant periodic
rate of interest on the remaining balance of the
liability for each period.

The right-of-use asset is depreciated over the
shorter of the asset's useful life and the lease term
on a straight-line basis. If ownership of the leased
asset transfers to the Company at the end of the
lease term or the cost reflects the exercise of a
purchase option, depreciation is calculated using
the estimated useful life of the asset. Right-of-use
assets are subject to impairment test.

The lease payments are discounted using the
interest rate implicit in the lease, if that rate can
be determined, or the company's incremental
borrowing rate. The Company applies the short¬
term lease recognition exemption to its short-term
leases (i.e., those leases that have a lease term of 12
months or less from the commencement date and
do not contain a purchase option). It also applies
the lease of low-value assets recognition exemption
to leases that are considered of low value. Lease
payments on short-term leases and leases of low-
value assets are recognised as expense on a straight¬
line basis over the lease term.

Lease modifications, if any are accounted as a
separate lease if the recognition criteria specified in
the standard are met.

Company as a lessor:

Leases are classified as operating lease or a finance
lease based on the recognition criteria specified in
Ind AS 116 - Leases

a) Finance Lease:

At commencement date, amount equivalent to
the “net investment in the lease” is presented as
a Receivable. The implicit interest rate is used
to measure the value of the “net investment in
Lease”.

Each lease payment is allocated between the
Receivable created and finance income. The
finance income is recognised in the Statement
of Profit and loss over the lease period so as to
reflect a constant periodic rate of return on the
net investment in Lease.

The asset is tested for de-recognition and
impairment requirements as per Ind AS 109 -
Financial Instruments.

Lease modifications, if any are accounted as
a separate lease if the recognition criteria
specified in the standard are met.

b) Operating Lease:

The company recognises lease payments
from operating leases as income on either a
straight-line basis or another systematic basis,
if required.

Lease modifications, if any are accounted as
a separate lease if the recognition criteria
specified in the standard are met.

1.15 Income Taxes:

The Company's major tax jurisdictions are in India.
Significant judgements are involved in determining
the provision for income tax credits, including the
amount to be paid or refunded.

Income tax expense comprises current tax expense
and the net change in the deferred tax asset or
liability during the year. Current and deferred tax
are recognised in statement of profit or loss, except
when they relate to 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.

a. Current Income Taxes:

The current income tax expense includes income
taxes payable by the Company and its overseas
branches. Advance taxes and provisions for current
income taxes are presented in the balance sheet
after off-setting advance tax paid and income tax
provision arising in the same tax jurisdiction and
where the relevant tax paying units intends to settle
the asset and liability on a net basis or where it has
legally enforceable right to set off the recognised
amount.

b. Deferred Income Taxes:

Deferred income tax is recognised using the balance
sheet approach. Deferred income 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.
Deferred income tax asset is recognised to the
extent that it is probable that taxable profit will be
available against which the deductible temporary
differences and unused tax losses, if any can be
utilised.

The carrying amount of deferred income tax assets
is reviewed at 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 substantively enacted tax rates expected to
apply to taxable income in the years in which the
temporary differences are expected to be received
or settled.

Deferred tax assets and liabilities are offset when
they relate to income taxes levied by the same
taxation authority and the relevant entity intends
to settle its current tax assets and liabilities on a net
basis.

1.16 Foreign Currency:

a. Functional and presentation currency:

The Standalone financial statement is presented in
Indian Rupee (Rs/? ), which is also the Company's
functional currency. Transaction in foreign
currencies are initially recorded by the Company at
their respective functional currency spot rates at the
date, the transaction first qualifies for recognition.
However, for practical reasons, the Company uses
an average rate, if the average approximates the
actual rate at the date of the transaction.

b. Initial Recognition:

Foreign currency transactions are recorded in the
reporting currency, by applying foreign currency
exchange rates between the reporting currency and
the foreign currency prevailing at the dates of the
transactions.

c. Measurement of foreign currency monetary items
and Non-monetary items at the balance sheet date

Monetary items outstanding at the balance sheet
date are restated at the rate as on reporting date.
Non - monetary items which are carried in terms
of historical cost denominated in a foreign currency
are not restated and hence is reported using the
exchange rate prevailing at the date of transactions.

d. Treatment of exchange differences on monetary
items

Exchange differences arising on settlement/
restatement of foreign currency assets and
liabilities of the Company are recognised as income
or expense in the statement of profit and loss in the
period in which they arise.

e. In respect of overseas branch, financial statements
are translated as if the transactions are those of the
Company itself i.e. Indian Rupees as the functional
currency since the overseas branch is primarily
involved in selling/marketing goods manufactured
by the Company in India. The net impact of the
foreign exchange difference of foreign operations is
recognised in Other Comprehensive Income.

1.17 Financial Instruments:

A financial instrument is any contract that gives
rise to a financial asset of any entity and a financial
liability or equity instrument of another entity.
Financial assets and liabilities are recognised when
the Company becomes a party to the contractual
provisions of the instrument. Financial assets
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.

i. 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.

ii. 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.

iii. Financial assets at fair value through profit or
loss:

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 statement of
profit and loss.

iv. Financial liabilities:

Financial liabilities are subsequently carried at
amortised cost using the effective interest method.
For trade and other payables maturing within one
year from the balance sheet date, the carrying
amounts approximate fair value due to the short
maturity of these instruments. Financial liabilities
at Fair value through profit and Loss are stated at
fair value, with any gains or losses arising on re¬
measurement in Profit and loss statement.

v. Equity Instrument:

An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments
issued by a company are recognised at the proceeds
received, net of issue costs.

vi. De-recognition of financial instruments:

The Company derecognises a financial asset when
the contractual rights to the cash flows from the
financial asset expire or it transfers the financial
asset and the transfer qualifies for de-recognition
under Ind AS 109. A financial liability (or a part
of a financial liability) is derecognised when the
obligation specified in the contract is discharged or
cancelled or expires.

vii. Impairment of financial assets:

The Company assesses on a forward looking basis
the expected credit losses associated with its
assets carried at amortised cost. The impairment
methodology applied depends on whether there
has been a significant increase in credit risk. In
respect of trade receivables, the Company applies
simplified approach permitted by Ind AS 109
Financial Instruments, which requires expected
lifetime losses to be recognised from initial
recognition of the receivables.

viii. Investments in subsidiary:

Investments in subsidiary are carried at cost less
accumulated impairment, if any.

ix. Fair value of financial instruments:

In determining the fair value of its financial
instruments, the Company uses following hierarchy
and assumptions that are based on market
conditions and risks existing at each reporting date.
Fair value hierarchy:

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
For assets and liabilities that are recognised in the
standalone financial statements on a recurring
basis, the Company determines whether transfers
have occurred between levels in the hierarchy
by re-assessing categorisation (based on the
lowest level input that is significant to the fair
value measurement as a whole) at the end of each
reporting period

1.18 Accounting for Derivatives:

Derivatives are initially recognised at fair value and
are subsequently re-measured to their fair value
at the end of each reporting period. The resulting
gains/losses is recognised in the statement of profit
and loss of that period.

1.19 Borrowing Cost:

General and specific borrowing cost that are
directly attributable to the acquisition, construction
or production of a qualifying asset are capitalised
during the period that is required to complete and
prepare the asset for its intended use. Qualifying
assets are assets that necessarily take a substantial
period of time to get ready for their intended use.
Investment income earned on the temporary
investment of specific borrowings pending their
expenditure on qualifying assets is deducted from
the borrowing costs eligible for capitalisation.

Other borrowing costs are charged to statement
of Profit and Loss in the period in which they are
incurred.

1.20 Government Grants:

Government grants are not recognised until there
is reasonable assurance that the Company will
comply with the conditions attached to them and
that the grants will be received. Government grants
are recognised in profit or loss on a systematic basis
over the periods in which the Company recognises
as expenses the related costs for which the grants
are intended to compensate.

1.21 Cash Flow statement

Cash flows are reported using Indirect method,
whereby profit for the period is adjusted for the
effects of transactions of non-cash nature, any
deferrals or accruals of past or future operating
cash receipts or payments and item of income or
expenses associated with investing or financing cash
flows. The cash flows from operating, financing and
investing activity of the company are segregated.