a. Property Plant and Equipment

Tangible assets are stated at cost, less
accumulated depreciation and impairment, if any.
Direct costs are capitalized until such assets are
ready for use. Capital work in progress
comprises the cost of fixed assets that are not yet
ready for their intended use at the reporting date.

b. Impairment of Assets

At each balance sheet date, the Company
reviews the carrying amount of its fixed assets to
determine whether there is any indication that
those assets suffered an impairment loss. If any
such indication exists, the recoverable amount of
the assets is estimated in order to determine the
extent of impairment loss. Recoverable amount is
the higher of an asset’s net selling price and
value in use. In assessing value in use, the
estimated future cash flows expected from the
continuing use of the assets and from its disposal
are discounted to their present value using a
pre-tax discount rate that reflects the current
market assessments of time value of money and
the risks specific to the assets.

c. Depreciation

Depreciation has been charged on cost of fixed
assets, adopting the following methods / rates:

1. Depreciation is calculated using Straight Line
Method (SLM) to allocate their cost, net of
their residual values, if any, over their
estimated useful lives prescribed in Schedule
II of the Companies Act, 2013

2. If the cost of a part of the asset is significant
to the total cost of the asset and useful life of
that part is different from the useful life of the
remaining asset, useful life of that significant
part is determined separately for
Depreciation.

3. For other assets acquired / sold during the
year/period under review pro rata charge has
been made from the date of first use or till the
date of sale.

d. Capital Work in Progress

Properties under construction are stated at cost
less accumulated impairment losses if any, until
construction or development is completed, at
which time they are reclassified to be accounted
for as an item of Property Plant and Equipment.
Cost capitalized include cost of land and other
directly related development expenditure
incurred in developing the asset.

Cost of assets under development and not ready
for intended use, as on the reporting date, is
shown as capital work in progress. Advances
given towards acquisition of factory building and
expenses related to this, since the property is not
transferred as at the reporting date, the
outstanding at each reporting date are disclosed
under the head for Capital Assets under WIP

e. Intangible Assets

Intangible assets purchased by the company,
and that have finite useful lives, are measured at
cost, less accumulated amortization and
accumulated impairment losses. Cost includes
expenditure that is directly attributable to the
acquisition of the intangible asset.

Subsequent expenditure on intangible assets is
capitalized only when it increases the future
economic benefits embodied in the specific
asset to which it relates.

f. Investments

Non-Current/ Long-term Investments are stated
at cost. Provision is made for diminution in the
value of the investments, if any, in the opinion of
the management, the same is considered to be
other than temporary in nature. On disposal of an
investment, the difference between its carrying
amount and net disposal proceeds is charged or
credited to the Statement of Profit and Loss.

Current investments are carried at lower of cost
and fair value determined on an individual basis.

On disposal of an investment, the difference
between its carrying amount and net disposal
proceeds is charged or credited to the Statement
of Profit and Loss Transactions in foreign
currency are accounted for at exchange rates
prevailing on the date of the transaction.

g. Inventories

Inventories are valued at the lower of the cost &
estimated net realizable value. Cost of
inventories is computed on a First-in-first-out
(FIFO) basis. Finished goods & work in progress
include costs of conversion & other costs
incurred in bringing the inventories to their
present location & condition. Proceeds in respect
of sale of raw materials /stores are redited to the
respective heads. Obsolete, defective &
unserviceable stocks are duly provided for.

For inventory items, that are not ordinarily
interchangeable and goods or services
produced and segregated for specific projects,
the cost is assigned by specific identification of
their individual costs. In respect of other items,
cost is ascertained by adopting FIFO method.
Net realisable value is the estimated selling price
in the ordinary course of business less the
estimated costs of completion and the estimated
costs necessary to make the sale.

h. Trade and Other Receivables

Trade and other receivables are generally
measured at invoice value. An allowance for any
shortfall in recovery is established if the
collection of a receivable becomes doubtful. The
amount of the allowance is the difference
between the asset’s carrying amount and the
estimated future cash flows. The loss allowance
as also any subsequent recoveries made is
recognized in the Profit and Loss. Bad debts are
written off when identified.

i. Cash and Cash Equivalents

Cash and cash equivalents include all cash
balances and short-term highly liquid
investments that are readily convertible into
known amounts of cash and which are subject to
an insignificant risk of changes in value. Foreign
Currency cash if any, and cash equivalents are
measured at fair value.

j. Revenues and Other Income

a. Revenue from sale of goods is recognised,
on accrual basis, when significant risk and
rewards of ownership of the goods have
been passed to the buyer and it is
reasonable to expect ultimate collection.
Sale of goods is recognised net of GST and
other taxes.

b. Interest income is recognized on accrual
basis, adopting a time proportion method,
taking into account the amount outstanding
and the rate applicable.

c. Other items of income and expenses are
recognised on accrual basis.

d. Income from export entitlement is
recognised as on accrual basis.

k. Borrowing Costs

Interest and other costs in connection with the
borrowing of the funds to the extent related /
attributed to the acquisition / construction of
qualifying fixed assets are capitalized as a part of
the cost of such asset up to the date when such
assets are ready for its intended use and other
borrowing costs are charged to statement of
Profit & Loss.

l. Foreign Currency Transactions

Transactions denominated in foreign currencies
are recorded at the exchange rates prevailing on
the date of the transaction.

All exchange differences arising on settlement
and conversion on foreign currency transaction
are included in the Statement of Profit and Loss,
except in cases where they relate to the
acquisition of fixed assets, in which case they are

adjusted in the cost of the corresponding asset.

In respect of transactions covered by forward
exchange contracts, the difference between the
forward rate and the exchange rate at the date of
transaction is recognized as income or expense
at the time of maturity date, except where it
relates to fixed assets, in which case it is adjusted
in the cost of the corresponding assets.

m. Employee Benefits:

Employee benefits include provident fund,
gratuity fund and compensated absences.

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 recognised during the
year/period under review when the employees
render the service. These benefits include
performance incentive and compensated
absences which are expected to occur within
twelve months after the end of the period in
which the employee renders the related service.
The cost of such compensated absences is
accounted as under:

1. in case of accumulated compensated
absences, when employees render the
services that increase their entitlement of
future compensated absences; and

2. in case of non-accumulating compensated
absences, when the absences occur.
Provision for Bonus & Ex-Gratia is made on
accrual basis. Expenditure on leave travel
concession to employees are recognized in
the year/period under review of availment
due to uncertainties of accruals. Leave
encashment is provided on actual basis.

Defined contribution plan

The Company makes Provident Fund
contributions to defined contribution plans for
qualifying employees. Under the Schemes, the
Company is required to contribute a specified
percentage of the payroll costs to fund the
benefits. The contributions payable to these
plans by the Company are at rates specified in
the rules of the schemes.

Defined benefit plan

For defined benefit plan in the form of gratuity
fund, the cost of providing benefits is determined
using the Projected Unit Credit method, with
actuarial valuations being carried out at each
Balance Sheet date.

Remeasurement, comprising actuarial gains and
losses, the return on plan assets (excluding
amounts included in net interest on the net
defined benefit liability or asset) and any change
in the effect of asset ceiling (wherever
applicable) is recognized in other
comprehensive income and is reflected in
retained earnings and the same is not eligible to
be reclassified to profit or loss.

The company is contributing to the plan taken
from LIC of India to mitigate its liability towards
payment of Gratuity to the eligible employees.
The liability for Gratuity payments has been set
off with the fair value of plan assets (i.e. fund
balance) and the net value has been recognized
in the Balance Sheet accordingly.