1 Material Accounting Policies

This note provides a list of the material accounting policies adopted in the preparation of these standalone financial
statements. These policies have been consistently applied to all the years presented, unless otherwise stated.

(a) Basis of preparation and measurement

Compliance with Ind AS

Standalone Financial Statements have been prepared in accordance with the accounting principles generally
accepted in India including Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies
Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time
to time) and presentation and disclosures requirement of Division II of revised Schedule III of the Companies Act,
2013 (Ind AS Compliant Schedule III), as applicable to standalone financial statement.

Accordingly, the Company has prepared these Standalone Financial Statements which comprise the Balance
Sheet as at March 31, 2025, the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of
Changes in Equity for the year ended as on that date and accounting policies and other explanatory information
(together hereinafter referred to as "Standalone Financial Statements" or "financial statements").

Joint operations

Certain of the Company's activities, are conducted through joint operations, which are joint arrangements
whereby the parties that have joint control of the arrangement have rights to the assets and obligations for
the liabilities, relating to the arrangement. As per Ind AS 111 - Joint arrangements, in its standalone financial
statements, the Company being a joint operator has recognized its share of the assets, liabilities, income and
expenses of these joint operations incurred jointly with the other partners, along with its share of income
from the sale of the output and any assets, liabilities and expenses that it has incurred in relation to the joint
operation.

Historical cost convention

The standalone financial statements have been prepared on a historical cost basis, except for the following :

• Certain financial assets and liabilities (including derivative instruments) that are measured at fair value.

• Defined benefit plans - plan assets measured at fair value.

Current versus non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current / non-current classification.
An asset is treated as current when it is :

• Expected to be realized or intended to be sold or consumed in normal operating cycle.

• Held primarily for the purpose of trading.

• Expected to be realized within twelve months after the reporting period or

• Cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.

A liability is current when :

• It is expected to be settled in normal operating cycle.

• It is held primarily for the purpose of trading.

• It is 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.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities respectively.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and
cash equivalents. The Company has identified twelve months as its operating cycle.

(b) Foreign currency translation
Functional and presentation currency

Items included in the standalone financial statements of the Company are measured using the currency of
the primary economic environment in which the entity operates ('the functional currency'). The standalone
financial statements are presented in Indian Rupee (INR), which is the Company's functional and presentation
currency.

Initial Recognition

Foreign currency transactions are recorded in Indian currency, by applying the exchange rate between the Indian
currency and the foreign currency at the date of transaction.

Conversion

At the end of each reporting year, monetary items denominated in foreign currencies are retranslated at the
rates prevailing at that date.

Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the
rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in
terms of historical cost in a foreign currency are not retranslated.

Exchange Differences

Exchange differences arising on the settlement and conversion of foreign currency transactions are recognized
as income or as expenses in the year in which they arise, except in cases where they relate to the acquisition
of qualifying assets, in which cases they were adjusted in the cost of the corresponding asset. On transition to
Ind AS, the Company has elected to continue the accounting policy adopted in its previous GAAP with respect
to foreign exchange differences arising on long-term foreign currency monetary items related to a depreciable
asset, existing as on March 31, 2017. Such exchange differences are adjusted to the cost of depreciable asset
and depreciated over the balance life of the asset.

(c) Revenue from Contract with Customers

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net
of variable consideration) allocated to that performance obligation. The transaction price of goods sold and
services rendered is net of variable consideration on account of returns, trade allowances, rebates, value added
taxes & goods and services tax offered by the Company as part of the contract.

Sale of goods and rendering of services

The Company manufactures and sells a range of steel and iron product in the market. Sales are recognized
when control of the products has transferred at a point of time, being when the products are delivered to
the customer, the customer has full discretion over the channel and price to sell the products and there is no
unfulfilled obligation that could affect the customer's acceptance of the products. Delivery occurs when the
products have been shipped to the specific location, the risks of obsolescence and loss have been transferred
to the customer and either the customer has accepted the products in accordance with the sales contract, the
acceptance provisions have lapsed or the Company has objective evidence that all criteria for acceptance have
been satisfied. The Company considers whether there are other promises in the contract that are separate
performance obligations to which a portion of the transaction price needs to be allocated.

A receivable is recognized when the goods are delivered as this is the point in time that the consideration is
unconditional because only the passage of time is required before the payment is due.

Revenue from services is recognized as the related services are performed.

(d) Other Income
Interest Income

Interest income from debt instruments is recognized when it is probable that the economic benefits will flow to
the Company and the amount of income can be measured reliably. Interest income is accrued on a timely basis
using the effective interest rate, by reference to the principal outstanding and at the effective interest rate
applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of
the financial asset or where appropriate, a shorter period to that asset's net gross carrying amount.

Dividends

Dividends are recognized in profit or loss only when the right to receive payment is established, it is probable that
the economic benefits associated with the dividend will flow to the Company and the amount of the dividend
can be measured reliably.

(e) Taxes

Current income tax

Current tax is the amount of tax payable based on the taxable profit for the year as determined in accordance
with the applicable tax rates (i.e. enacted or substantially enacted) and the provisions of the Income Tax Act,
1961. The management periodically evaluates positions taken in returns with respect to situations in which
applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of
amounts expected to be paid to tax authorities.

Current income tax relating to items recognized outside the statement of profit and loss is recognized outside the
statement of profit and loss (either in other Comprehensive Income or in Equity) in co-relation to the underlying
transaction. Management periodically evaluates positions taken in the tax returns with respect to situations in
which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred Tax

Deferred tax is provided using the Balance Sheet approach on temporary differences between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences, except :

• When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss.

• In respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled
and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences and the carry forward of
unused tax credits and unused tax losses can be utilized, except :

• When the deferred tax asset relating to the deductible temporary differences arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss.

• In respect of deductible temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the
temporary differences will reverse in the foreseeable future and taxable profit will be available against which
the temporary differences can be utilized.

The carrying amount of deferred 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 tax asset to
be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the
extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when
the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.

Current and deferred taxes are recognized in the statement of profit and loss, except to the extent that it relates
to items recognized in other comprehensive income or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.

Indirect taxes paid on acquisition of assets or on incurring expenses

Expenses and assets are recognized net of the amount of indirect taxes paid, except :

• When the tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in
which case, the tax paid is recognized as part of the cost of acquisition of the asset or as part of the expense
item, as applicable.

• When receivables and payables are stated with the amount of tax included, the net amount of tax recoverable
from or payable to, the taxation authority is included as part of receivables or payables in the Balance Sheet.

(f) Cash and cash equivalents

Cash and cash equivalents in the Balance Sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consists of cash and short-term
deposits, as defined above, net of outstanding bank overdrafts and cash credit facilities as they are considered
an integral part of the Company's cash management.

(g) Trade receivables

A receivable represents the Company's right to an amount of consideration that is unconditional (i.e. only the
passage of time is required before the payment of the consideration is due). Financial assets in the form of
trade receivables that do not contain a significant financing component, determined in accordance with Ind AS
115 are initially measured at their transaction price.

Contract Liabilities (Advances from customers)

A contract liability is the obligation to transfer goods or services to a customer for which the Company has
received consideration in the form of advance from the customer (or an amount of consideration is due). If
a customer pays consideration before the Company transfers goods or services to the customer, a contract
liability is recognized when the payment is made or the payment is due (whichever is earlier). Contract liabilities
are recognized as revenue when the Company fulfill the obligation as per the contract.

(h) Inventories

Cost of inventories include all costs of purchases, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition.

Raw materials and components, stores and spares are valued at cost or net realizable value whichever is lower.
However, materials and other items held for use in the production of inventories are not written down below
cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Costs
are determined on weighted average basis.

Work-in-progress and finished goods are valued at cost or net realizable value whichever is lower. Costs includes
direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity
but does not include borrowing costs. Cost of work-in-progress and finished goods are determined on a weighted
average basis.

Materials-in-transit and materials in bonded warehouse are valued at actual cost incurred up to the date of
balance sheet.

Scrap is valued at net realizable value.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of
completion and estimated costs necessary to make the sale.

(i) Investment in subsidiary and associate

Equity investment in subsidiary and associate are accounted at cost less accumulated impairment.

(j) Fair value measurement

The Company measures financial instruments at fair value on initial recognition.

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. The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability takes place either :

• In the principal market for the asset or liability or

• In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant
that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements
are categorized within the fair value hierarchy, described as follows, based on the lowest level inputs that is
significant to the fair value measurement as a whole :

• Level 1 - Quoted (unadjusted) market prices in active markets for identical assets and 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 un-observable.

For assets and liabilities that are recognized in the standalone financial statements on a recurring basis,
the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorization at the end of each reporting period.

External valuers are involved for valuation of significant assets, such as unquoted financial assets. Involvement
of external valuers is decided upon annually by the management. Selection criteria include market knowledge,
reputation, independence and whether professional standards are maintained. The management decides, after
discussions with the Company's external valuers, which valuation techniques and inputs to use for each case.

At each reporting date, the management analyses the movements in the values of assets and liabilities which
are required to be re-measured or re-assessed as per the Company's accounting policies. For this analysis,
the management verifies the major inputs applied in the latest valuation by agreeing the information in the
valuation computation to contracts and other relevant documents.

The management also compares the change in the fair value of each asset and liability with relevant external
sources to determine whether the change is reasonable.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as
explained above.

(k) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.

(l) Financial assets

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair
value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
However, trade receivables that do not contain a significant financing component are measured at transaction
price.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in three categories :

• Financial assets at amortized cost

• Financial assets at fair value through other comprehensive income (FVTOCI)

• Financial assets at fair value through profit or loss (FVTPL)

Financial assets at amortized cost

A financial asset is measured at amortized cost if both of the following conditions are met :

• The financial asset is held within a business model whose objective is to hold financial 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.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective
interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in other income
in the statement of profit and loss. The losses arising from impairment are recognized in the statement of profit
and loss.

Financial assets at fair value through other comprehensive income

A financial asset is measured at fair value through other comprehensive income, if both of the following criteria are
met :

• The financial asset is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling the financial assets 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.

After initial measurement, such financial assets, until they are de-recognized or re-classified, are subsequently
measured at fair value and recognized in other comprehensive income except for interest income, gain / loss on
impairment, gain / loss on foreign exchange which is recognized in the statement of profit and loss.

Financial assets at fair value through profit or loss

A financial asset is measured at fair value through profit or loss unless it is measured at amortized cost or at fair
value through other comprehensive income.

In addition, the Company may elect to classify a financial asset, which otherwise meets amortized cost or
fair value through other comprehensive income criteria, as at fair value through profit or loss. However, such
election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred
to as 'accounting mismatch'). The Company has not designated any financial asset as at fair value through profit
or loss.

After initial measurement, such financial assets are subsequently measured at fair value in the statement of
profit and loss.

Equity Instrument

Investment in equity instrument issued by other than subsidiaries are classified as at FVTPL, unless the related
instruments are not held for trading and the Company irrevocably elects on initial recognition to present
subsequent changes in fair value in other comprehensive income.

De-recognition of financial assets

A financial asset is de-recognized when :

• The contractual rights to receive cash flows from the financial asset have expired or

• The Company has transferred its contractual rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a pass-through
arrangement and either :

(a) The Company has transferred substantially all the risks and rewards of the asset or

(b) The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but
has transferred control of the asset.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and
recognition of impairment loss on the following financial assets and credit risk exposure :

• Financial assets that are debt instruments and are measured at amortized cost e.g. loans, debt-securities,
deposits, trade receivables and bank balance

• Financial assets that are debt instruments and are measured as at FVTOCI

• Lease receivables

• Trade receivables or any contractual rights to receive cash or another financial asset that result from
transactions that are within the scope of Ind AS 115.

The Company follows 'simplified approach' for recognition of impairment loss allowance on trade receivables.

The application of simplified approach does not require the Company to track changes in credit risk. Rather,
it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial
recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that
whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not
increased significantly, 12 month ECL is used to provide for impairment loss. However, if credit risk has increased
significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such
that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to
recognizing impairment loss allowance based on 12 month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a
financial instrument. The 12 month ECL is a portion of the lifetime ECL which results from default events on a
financial instrument that are possible within 12 months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the
contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted at the
original EIR. When estimating the cash flows, an entity is required to consider :

• All contractual terms of the financial instrument (including prepayment, extension, call and similar options)
over the expected life of the financial instrument. However, in rare cases when the expected life of the
financial instrument cannot be estimated reliably, then the Company is required to use the remaining
contractual term of the financial instrument.

• Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual
terms.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income / expense in
the statement of profit and loss. This amount is reflected under the head "Other Expenses" in the statement of
profit and loss.

The Balance sheet presentation for various financial instruments is described below :

• Financial assets measured as at amortized cost and contractual revenue receivables.

ECL is presented as an allowance, i.e. as an integral part of the measurement of those assets in the balance
sheet. The allowance reduces the net carrying amount. Until the asset meets write-offs criteria, the Company
does not de-recognize impairment allowance from the gross carrying amount.

The Company does not have any purchased or originated credit-impaired (POCI) financial assets, i.e. financial
assets which are credit impaired on purchase / origination.

(m) Financial Liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,

loans and borrowings, payables or as derivatives designated as hedging instruments in an effective hedge, as
appropriate.

All financial liabilities are recognized initially at fair value and in the case of loans and borrowings and payables,
net of directly attributable transaction costs.

The Company's financial liabilities include trade and other payables, loans and borrowings including bank
overdrafts and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below :

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition
as at fair value through profit or loss. This category also includes derivative financial instruments entered into by
the Company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109.
Standalone embedded derivatives are also classified as held for trading unless they are designated as effective
hedging instruments. Gains or losses on liabilities held for trading are recognized in the statement of profit and
loss.

De-recognition of financial liabilities

A financial liability (or a part of a financial liability) is de-recognized from its balance sheet when and only when,
it is extinguished i.e. when the obligation specified in the contract is discharged or cancelled or expired.

When an existing financial liability is replaced by another from the same lender on substantially different terms
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as
the de-recognition of the original liability and the recognition of an new liability. The difference in the respective
carrying amounts is recognized in the statement of profit and loss.

(n) Loans and Borrowings at amortized Cost

Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognized in profit or loss over the period of the borrowings using the effective interest method.
Fees paid on the establishment of loan facilities are recognized as transaction cost, the fee is deferred until the
draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be
drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the
facility to which it relates.

(o) Borrowing costs

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

The Company determines the amount of borrowing costs eligible for capitalization as the actual borrowing
costs incurred on that borrowing during the year less any interest income earned on temporary investment of
specific borrowings pending their expenditure on qualifying assets, to the extent that an entity borrows funds
specifically for the purpose of obtaining a qualifying asset. In case if the Company borrows generally and uses
the funds for obtaining a qualifying asset, borrowing costs eligible for capitalization are determined by applying
a capitalization rate to the expenditures on that asset.

Borrowing Cost includes exchange differences arising from foreign currency borrowings to the extent they are
regarded as an adjustment to the finance cost.

(p) Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a
legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or
realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on
future events and must be enforceable in the normal course of business and in the event of default, insolvency
or bankruptcy of the Company or the counterparty.

(q) Property, plant and equipment

Property, plant and equipment are stated at cost of acquisition or construction net of accumulated depreciation
and impairment loss (if any). All significant costs relating to the acquisition and installation of property,
plant and equipment are capitalized. Such cost includes the cost of replacing part of the property, plant and
equipment and borrowings costs for long term construction projects if the recognition criteria are met. When
significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them
separately based on their specific useful lives. Likewise, when a major inspection / relining is performed, its cost
is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria
are satisfied. All other repair and maintenance costs are recognized in statement of profit and loss during the
reporting period in which they are incurred.

Cost of assets not ready for use, as on Balance Sheet date, is shown as capital work-in-progress (CWIP),
advances given towards acquisition of Property, plant and equipment outstanding at each Balance Sheet date
are disclosed under non-current assets.

Subsequent costs are included in the asset's carrying amount as recognized as a standalone asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
Company and the cost of the item can be measured reliably. The carrying amount of any component accounted
for a standalone asset is de-recognized when replaced.

The identified components are depreciated over their useful lives, the remaining asset is depreciated over the
life of the principal asset.

Depreciation on additions is provided from the beginning of the month in which the asset is put to use.

Depreciation on assets sold, discarded or demolished during the year is being provided at their respective rates
on pro-rata basis up to the end of the month prior to the month in which such assets are sold, discarded or
demolished.

The useful lives has been determined based on technical evaluation done by the management's expert which
are higher than those specified by Schedule II to the Companies Act, 2013, in order to reflect the actual usage
of the assets.

Depreciation is charged on the basis of useful life of assets on straight line method.

Useful life of following asset category is considered as per Schedule II of Companies Act, 2013 except MBF
Relining.

For MBF Relining, useful life is considered based on past history of usage, supported by technical evaluation.

Freehold land is carried at historical cost.

An item of property, plant and equipment and any significant part initially recognized is de-recognized upon
disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising
on de-recognition of the asset is included in the standalone statement of profit and loss when the asset is
de-recognized.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at
each financial year.

Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant
and equipment recognized as at April 1, 2016 measured as per the previous GAAP and use that carrying value
as the deemed cost of the property, plant and equipment.

Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition,
intangible assets are carried at cost less any accumulated amortization. Internally generated intangibles,
excluding capitalized development costs, are not capitalized and the related expenditure is reflected in statement
of profit and loss in the period in which the expenditure is incurred.

Intangible assets of computer software is amortized over the useful economic life of six years and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The amortization period
and the amortization method for an intangible asset with a finite useful life are reviewed at each reporting
period.

Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the
net disposal proceeds and the net carrying amount of the asset and are recognized in the statement of profit
and loss when the asset is de-recognized.

Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its intangible
assets recognized as at April 1, 2016 measured as per the previous GAAP and use that carrying value as the
deemed cost of the intangible assets.

(r) Impairment of non-financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired.
If any indication exists, the Company estimates the asset's recoverable amount. An asset's recoverable amount
is the higher of an asset's or cash-generating unit's (CGU) fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that
are largely independent of those from other assets or group of assets. When the carrying amount of an asset
or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable
amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no
such transactions can be identified, an appropriate valuation model is used.

Impairment losses including impairment on inventories are recognized in the statement of profit and loss.

Previously recognized impairment loss is reversed only if there has been a change in the assumptions used to
determine the asset's recoverable amount since the last impairment loss was recognized. The reversal is limited
so that the carrying amount of asset does not exceed its recoverable amount. Such reversal is recognized in
statement of profit and loss.

(s) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial
year which are unpaid. Trade and other payables are unsecured and are presented as current liabilities unless
payment is not due within operating cycle determined by the Company after the reporting period.