B. Significant Accounting Policies:
The Financial Statements have been prepared on the historical cost basis except for following assets and liabilities
which have been measured at fair value amount:
i) Certain Financial Assets and Liabilities (including derivative instruments),
ii) Defined Benefit Plans - Plan Assets and
iii) Equity settled Share Based Payments
The Financial Statements of the Company have been prepared to comply with the Indian Accounting standards
('Ind AS'), including the rules notified under the relevant provisions of the Companies Act, 2013, (as amended
from time to time) and Presentation and disclosure requirements of Division IIof Schedule III to the Companies
Act, 2013,(I nd AS Compliant Schedule III) as amended from time to time.
B.2 Summary of Significant Accounting Policies
(a) Current and Non-Current Classification
The Company presents assets and liabilities in theBalance Sheet based on Current/ Non-Currentclassification.
An asset is treated as Current when it is -
(1) Expected to be realised or intended to be sold or consumed in normal operating cycle;
(2) Held primarily for the purpose of trading;
(3) Expected to be realised within twelve monthsafter the reporting period, or
(4) Cash or cash equivalent unless restricted frombeing exchanged or used to settle a liability for
at least twelve months after the reporting period.
All other assets are classified as non-current
A liability is current when:
(1) It is expected to be settled in normal operating cycle;
(2) It is held primarily for the purpose of trading;
(3) It is due to be settled within twelve months afterthe reporting period, or
(4) There is no unconditional right to defer thesettlement of the liability for at least twelvemonths after
the reporting period.
The Company classifies all other liabilitiesas non-current
Deferred tax assets and liabilities are classified asnon-current assets and liabilities
(b) Property, Plant and Equipment
Property, Plant and Equipment are stated at cost, netof recoverable taxes, trade discount and rebates
less accumulated depreciation and impairment losses, if any. Such cost includes purchase price, borrowingcost
and any cost directly attributable to bringingthe assets to its working condition for its intended use, net charges
on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.
In case of land theCompany has availed fair value as deemed cost onthe date of transition to Ind AS.
Subsequent costs 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 entity and the
cost can be measured reliably.
Depreciation on Property, Plant and Equipment is provided using written down value method on depreciable
amount except in case of certain assets of Oil to Chemicals segment which are depreciated using straight line
method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies
Act, 2013 except in respect of the following assets, where useful life is different than those prescribed in
Schedule II;
(c) Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes, trade discount and rebates less
accumulated amortisation/depletion and impairment losses, if any. Such cost includes purchase price, borrowing
costs, and any cost directly attributable to bringing the asset to its working condition for the intended use,
net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable
to the Intangible Assets.
Subsequent costs 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 entity and the cost
can be measured reliably.
Gains or losses arising from derecognition of an Intangible Asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss
when the asset is derecognised. The Company's intangible assets comprises assets with finite useful life which
are amortised on a straight-line basis over the period of their expected useful life.
(d) Cash and Cash Equivalents
Cash and cash equivalents comprise of cash on hand, cash at banks, short-term deposits and short-term highly
liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of changes in value.
(e) Finance Costs
Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are
regarded as an adjustment to the interest cost. Borrowing costs that are directly attributableto the acquisition or
construction of qualifying assets are capitalised as part of the cost of suchassets. A qualifying asset is one that
necessarily takes substantial period of time to get ready for i ts intended use.
Interest income earned on the temporary investmentof specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowingcosts eligible for capitalisation.All other borrowing costs are
charged to the Statement of Profit and Loss for the period for which they are incurred.
(f) Inventories
Items of inventories are measured at lower ofcost and net realisable value after providing forobsolescence, if any,
except in case of by-productswhich are valued at net realisable value. Cost of inventories comprises of cost
of purchase,cost of conversion and other costs including manufacturing overheads net of recoverable taxes
incurred in bringing them to their respective present I ocation and condition.
Cost of finished goods, work-in-progress, rawmaterials, chemicals, stores and spares, packing materials,
trading and other products aredetermined on weighted average basis.
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