A. Basis of Preparation

The financial statements are prepared under the historical cost convention on an accrual basis of
accounting in accordance with the Generally Accepted Accounting Principles, Accounting
Standards notified under Section 133 of the Companies Act, 2013 and the relevant provisions there
of. All assets and liabilities have been classified as current or non-current as per the Company's
normal operating cycle and other criteria set out in Schedule III to the
Companies Act, 2013.

B. Use Of Estimates

The preparation and presentation of financial statements requires estimates and assumptions to be
made that affect the reported amount of assets and liabilities and disclosures of contingent
liabilities as on date of the financial statements and reported amount of revenue and expenses
during the reporting period. Difference between the actual results and estimates is recognized in
the period in which the results are known / materialized.

C. Tangible Assets Estimates

Tangible assets are stated at cost less accumulated depreciation and net of impairment, if any. Pre¬
operation expenses including trial run expenses (net of revenue) are capitalised. Borrowing costs
during the period of construction is added to the cost of eligible tangible assets.

D. Intangible Assets

Intangible assets are stated at cost less accumulated amortization and net of impairments, if any.
An intangible asset is recognized if it is probable that the expected future economic benefits that
are attributable to the asset will flow to the Company and its cost can be measured reliably.
Intangible assets having finite useful lives are
amortized on a straight-line basis over their estimated useful lives.

E. Depreciation And Amortisation
Tangible Assets

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written Down
Value (WDV) Method. Depreciation is provided based on useful life of the assets as prescribed in
Schedule II to the Companies Act, 2013.

F. Impairment

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An
impairment loss is charged to the Profit and Loss Statement in the year in which an asset is
identified as impaired. The impairment loss recognized in prior accounting period is reversed if
there has been a change in the estimate of recoverable amount.

G. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are
capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other borrowing costs are charged
to the Profit and Loss Statement in the period in which they are incurred.

H. Employee Benefits

(i) Short term employee benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified
as short term employee benefits. The undiscounted amount of short term employee benefits
expected to be paid in exchange for the services rendered by employees are charged off to the
Profit and Loss Account.

(ii) Defined Contribution Plans:

Contributions to defined contribution schemes such as provident fund are charged off to the Profit
and Loss Account during the year in which the employee renders the related service.

(iii) Defined Benefit Plans: The present value of the obligation under such plan is determined
based on an actuarial valuation using the Projected Unit Credit Method. Actuarial gains and losses
arising on such valuation are recognised immediately in the Profit and Loss Account. Termination
benefits are recognised as and when incurred.

(iv) Other Long Term Benefits: Leave encashment is payable to eligible employees who have
earned leaves, during the

employment and / or on separation as per the Company's policy.

I. Income Taxes

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount
expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect
the current period timing differences between taxable income and accounting income for the
period and reversal of timing differences of earlier years/period. Deferred tax assets are
recognised only to the extent that there is a reasonable certainty that sufficient future income will
be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are
recognised if there is virtual certainty that sufficient future taxable income will be available to
realize the same. Deferred tax assets and liabilities are measured using the tax rates and tax law
that have been enacted or substantively enacted by the Balance Sheet date.

J. Inventories

Items of inventories are measured at lower of cost or net realizable value after providing for
obsolescence, if any. Cost of inventories comprises cost of purchase, cost of conversion and other
costs including manufacturing overheads incurred in bringing them to their respective present
location and condition.

Cost of raw materials, stores and spares, packing materials and other products are determined on
weighted average basis.

K. Revenue Recognition

Revenue from sale of goods is recognised net of rebates and discounts on transfer of
significant risks and rewards of ownership to the buyer. Sale of goods is recognised net of
sales tax and value added tax.

Interest income is recognised on a time proportion basis taking into account the amount
outstanding and the interest rate applicable.

Dividend income is recognised when the right to receive payment is established.

^L. Investments

Current investments are carried at lower of cost and quoted/fair value, computed category-wise.
Non-Current investments are stated at cost. Provision for diminution in the value of Non- Current
investments is made only if such a decline is other than temporary.

M. Foreign Currency Transactions

Transactions in foreign currency are recorded at the rate of exchange prevailing on the date of
transaction. Year-end balance of foreign currency monetary item is translated at the year-end rates.
Exchange differences arising on settlement of monetary items or on reporting of monetary items at
rates different from those at which they were initially recorded during the period or reported in
previous financial statements are recognised as income or expense in the period in which they
arise.

N. Earnings Per Share

Basic earnings per share (EPS) is calculated by dividing the net profit or loss after tax for the period
attributable to equity shareholders by the weighted average number of equity shares outstanding
during the period. Diluted earnings per share is computed by adjusting the number of shares used
for basic EPS with the weighted average number of shares that could have been issued on the
conversion of all dilutive potential equity shares. The weighted average number of equity shares
and potential equity shares outstanding during the period and for all the period presented is
adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that
have changed the number of equity shares outstanding, without a corresponding change in
resources.