Note : 1. Significant accounting policies
(a) Statement of compliance
The Standalone Financial Statements comply in all material respects with Indian Accounting
Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) read with
Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions
of the Act, as amended.
(b) Basis of preparation
The financial statements have been prepared on historical cost basis except for certain financial
instruments measured at fair value. The Standalone Financial Statements have been prepared on
accrual and going concern basis.
(c) Use of estimates and judgments
The preparation of financial statements in conformity with Ind AS requires management to make
judgments, estimates and assumptions, that affect the application of accounting policies and the
reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the
date of these financial statements and the reported amounts of revenues and expenses for the
years presented. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to
accounting estimates are recognised in the period in which the estimate is revised and future
periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgments
in applying accounting policies that have the most significant effect on the amounts recognized
in the financial statements are included in following notes :
i) Recoverability/recognition of deferred tax assets and Estimation of Tax expenses and Liability
ii) Assets and obligations relating to employee benefits
iii) Impairment of Financial Assets such as Trade Receivables
(d) Revenue recognition
Revenue is recognised when control of goods is transferred to a customer in accordance with the
terms of the contract. The control of the goods is transferred upon delivery to the customers
either at factory gate of the Company or specific location of the customer or when the goods are
handed over to the freight carrier, as per the terms of the contract. A receivable is recognised by
the Company when the goods are delivered to the customer as this represents the point in time
at which the right to consideration becomes unconditional, as only the passage of time is required
before payment is due.
Revenue is measured based on the consideration to which the Company expects to be entitled
as per contract with a customer. The consideration is determined based on the price specified in
the contract and revenue is only recognised to the extent that it is highly probable that a
significant reversal will not occur. Contracts with customers are for short-term, at an agreed price
basis having contracted credit period ranging up to 180 days. The contracts do not grant any
rights of return to the customer. Returns of goods are accepted by the Company only on an
exception basis. Revenue excludes any taxes or duties collected on behalf of the government
which are levied on sales such as goods and services tax.
Interest income from financial assets is recognised using the 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 a financial asset. When
calculating the effective interest rate, the Company estimates the expected cash flows by
considering all the contractual terms of the financial instrument (for example, prepayment,
extension, call and similar options) but does not consider the expected credit losses.
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