• 1 Material accounting policies

a) Basis of preparation:

⁰ the⁶ Coⁿmpa™e$fAc™^ ^ ^{lndian Accountin}9 ^Stand^s (Ind AS) notified under Section 133 of

provisions o^The Act, as amended!⁶ ^ ^ *" ^C°^mPan'^{eS (lndian ACC}°^U"^{ting Standards}> ^Rules' ^{2015 a}"^d °ther relevant

^} fair ^{except for certain financial assets and} ''abilities measured at

m) The Financial Statements have been prepared on accrual and going concern basis.

v) The accounting policies are applied consistently to all the periods presented in the Financial Statements All assets and liability

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v) Recent accounting pronouncements :

Ac^u^ti^a'stand^^Ri'Jti.!^⁰^ "°'f^{s naw} a,MMs °^r ^ to the existing standards under Companies (Indian Accounting Standards ) Rules as issued from time to time . For the vear ended March 'll jooa mp a hoc; rw „*•< j

standards or amendments to me existing standards applicable to the Company MCA has no. notified any new

Sld“p?o!TdCr ^Pr6Se"^{,ed ,n<iian RUPeeS}- ^{Any discrepa}"^{cy in a}"^{y tabla} ^ «**Ý ^aad «< the amounts

>) Foreign currency transactions:

i) Functional and presentation currency

ii) i ransactions and balances:

Fnminn ^transatf^|0ns are translated into the functional currency using the exchange rates at the dates of the transactions

L° i?H^XChan9e fT-^{1 (}°^{SS) resultin}9 ^{from the} settlement of such transactions and from the translation of monetary assets and “'L™? 'ⁿ fT ^C"^rrenC'^{eS 3t year end exchan}9^e rates are generally recognised in the Statement of Profit and rpnprdprt^h ^ ^{are daf}®^{rred In other e}9^ultY ^lf ‘hey relate to qualifying cash flow hedges. Foreign exchange differences fnrZn a h ^nt \° ^borrowin9 costs are presented in the Statement of Profit and Loss, within finance costs All other

foreign exchange gain | (loss) presented in the Statement of Profit and Loss are on a net basis within other expenses/ (income)

_r^N°ⁿ:^m°7_hL^a^'!^emV^half^ef^meaS?^{red 3t f3ir Value that are denom|}nated in a foreign currency are translated using the exchange rpnnrtPd ^{h d} 1 Tin" ^ ^{Va US W3S determined} Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain | (loss). Non-monetary items that are measured in terms of historical cost in a foreiqn currency are reported using the exchange rate at the date of the transcation not revalued. ⁹

c) Revenue recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

(i) Sale of goods :

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods. The company collects Goods and Service Tax (GST) on behalf of the government and, therefore, these are not economic benefits flowing to the company. Hence, they are excluded from the revenue

(ii) Income from Job work/Services:

Revenue from job work / services is recognised on percentage of completion method based on the physical proportion of the Job Work / services and is net of rate differences & claims.

(iii) Interest:

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable rate of interest. Interest income is included under the head “Other Income” in the statement of profit and loss.

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.

d) Taxes:

Tax exp^enses comprise current and deferred tax. Current Income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred Income taxes reflect the impact of timing differences between taxable income and accounting income originating durinq he current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such defe^ed tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidences that they can be realized against future taxable profits. Deferred tax assets are reviewed at each reporting date.

Alternate Tax paid in a year is charged to the statement of profit and loss as current tax. The company recoqnizes MAT c edit available as an asset only to the extent that there is convincing evidence that the company will pay normaHncome tax durina the specified period i.e , the period for which MAT credit is allowed to be carried forward. In the yLr ^whichThe comoanS recognizes MAT credit as an asset in accordance with the guidance note on accounting for credit available in respect of minimum

®raVwTc%«%:,r™nr s^{i96r ,he saia asset is} “^ea,ed »=» °< ^ •» «» %£« z

snown as MAT Credit Entitlement. The company reviews the “MAT credit entitlement" at each reporting date.

TLTtT1eferr^SeTtT^dbafaTT^STLTn^et^thp^hen “T T '^e9a|l^{y enforceable ri}S^{ht to} offset current tax assets and liabilities and rnmnln! Sc lil T ^b ? ^elateto the same taxation authority. Current tax assets and tax liabilities are offset where the

liability^s,mTaneoustI^y ® °^rCeab'^{e r}'^9ht ‘° ^{0ffset and intends either t0 settle a net b}^'S, or to realise the asset and settle the

^{deferred tax} I^s recognised in profit or loss, except to the extent that it relates to items recoqnised in other equity ⁶ '^nCOme °^{f y} '^{n 6qU,ty}' ^{ln thiS CaS6}’ ^{the t3X iS alS}° ^reco9^nised ^ other comprehensive income or directly in

e) Government grants:

^{whera ,he,e is a reasona6te a}“ ^,aa<^,he -*—« «

ii) Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred

S'ZZJT ^{,ed ,0 PK}®^{pr loss in propo,,ion ,0 dep,ecia,,on over ,ha expaaM} “»* °<

in) Government grants relating to income are deferred and recognised in the Statement of Profit and Loss over the Deriod necessary to match them with the costs that they are intended to compensate and presented within other income ^P

f) Leases:

As a lessee:

The Company assesses whether a contract is, or contains a lease, at inception of the contract. A contract is or contains a lease if

whPth ^{traC C}°,^{nveys the n9ht t0 contro1 the use of an} identified asset for a period of time in exchange for consideration To assess he her a contract conveys the right to control the use of an identified asset, the Company assesses whether i) the contract

theTenod of me leaT 'Tj--S! ^ ^{M) the},^ComP^{any has} substantially all of the economic benefits from use of the asset through the period of the lease and m) the Company has the right to direct the use of the asset. ⁹

At the commencement date of the lease, the Company recognises a right-of-use asset and a corresponding lease liability for all ease arrangements in which it is lessee, except for short-term leases (leases with a term of twelve months or less) leases of low value assets and, for contract where the lessee and lessor has right to terminate a lease without perSfon from thfothl with no more than an insignificant penalty. The lease expense of such short-term leases, low value assets leases and cancellable leases, are recognised as an operating expense on a straight-line basis over the term of the lease. cancellable

^{,easa pa>ma}"^{,s mapa at}-—-«

Subsequently the right-of-use asset is measured at cost less accumulated depreciation and any impairment losses Lease liabilitv mp^Sth^bH?^qU'T^lly.^measu[^{ed by} creasing the carrying amount to reflect interest on the lease liability (using effective interest rate

ad 2 o eSan? ea^di^T^ *° ^ ^ ^{The ri9ht}-°^f-^e a o

adjusted to reflect any lease modj/jeat*etj§or revised in-substance fixed lease payments

g) Current / non-current classification:

^a"^{d m} '^{he ba}'^{anCe Shee}' ^B“^ed °" ^CUrre"' ^{an<l non}-^curr»"' “cation. An asset is

a) expected to be realised or intended to be sold or consumed in normal operating cycle

b) held primarily for the purpose of trading;

c) expected to be realised within twelve months after the reporting period; or

reporting period ^{Sh 6qU}'^{Valent Unl6SS restricted from bein}9 exchanged or used to settle a liability for at least twelve months after the

All other assets are classified as non-current.

A liability is treated as current when it is:

a) expected to be settled in normal operating cycle;

b) held primarily for the purpose of trading;

c) due to be settled within twelve months after the reporting period- or

d) there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

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

h) Property, plant and equipment:

All items of property, plant and equipment are stated at acquisition cost net of accumulated depreciation and accumulated impairment losses, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items ^Subsequent costs are included in the carrying amount of asset or recognised as a separate asset, as appropriate only when it is reTablv _AInth ^{6 eC}°^n0m!f ^{benefits assoclated} with the item will flow to the Company and the cost of the item can be measured th!f,^bJL^A ^^{PairS 3}?^{d maintenance} expenses are charged to the Statement of Profit and Loss during the period in which ey are incurred. Gains or losses arising on retirement or disposal of assets are recognised in the of Profit and Loss.

Property, plant and equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as 'Capital work

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Depreciation and amortisation methods, estimated useful lives and residual value:

Depreciation on fixed assets is determined based on the estimated useful life of the assets using the straight line method as presen e under the schedule II to the Companies Act, 2013. Individual assets costing less than Rs. 5000.00 or less are depreciated within a year of acquisition. Depreciation on assets purchased/sold during the period is proportionately charged

ROU asset is amortized on a straight line basis over the period of lease. Intangible assets, if any, are amortized over their useful life on a straight line method. Depreciation on assets are provided on the basis of useful life of assets as follows.

JJS₍2^^{rately are} 7?!^Ured' ⁰⁰ '^{nitial recognitlon}‘ ^{at cost} Following the initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. ⁹

The amortisation expense on intangible assets is recognised in the statement of profit and loss,

j) Impairment of non-financial assets:

rLn I ^{independen those from other} assets or groups 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.

I-rf^{9 V}f^{1 ue} ? ,^USe’^{the estimated future} cash flows are discounted to their present value using a pre-tax discount rate that

°^{ther aVai}'^{able fair va,ue indicators}' ^The Com" on^eta^le^bu^ete^nd

Impairment losses are recognised in the statement of profit or loss.

r«pfI^Sment('^{S ma}f ^{3t each reportin}9 ^{date t0} determine whether there is an indication that previously recoqnised impairment osses on assets no longer exist or have decreased. If such indication exists, the CompanyestimatesTheTsSefs o^ s

to dPtPrm^{b e a}^^0Unt- ^A P^revious|y recognised 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 recognised The reversal is Se7som_a?thP

SSnTrl?<?de5^n^a⁸dⁿno imoairment "^eC°^Vh^{erable amount}' ^{nor exceed} the carrying amount that would have been in the statement of p?om Sr loss! '°^{SS be6}" ^reC°⁹ⁿ'^{Sed f}°^{r the 3SSet in prior years Such} reversal '» recognised

k) Trade receivables:

Trade receivables are recognised when the right to consideration becomes unconditional These assets are held at amortised rnst using the effective interest rate (EIR) method where applicable, less provision for impairment based on expected credit loss.

l) Trade and other payables:

unpaidTa^YnTothTr'nevSies ^ ⁹°°^{dS aad services provided} »° ^the Company prior to the end of financial year which are rennrtinndai ^{th payables are} presented as current liabilities unless payment is not due within 12 months from the eportmg They are recognised initially at their fair value and subsequently measured at amortised cost using the EIR method

m) Inventories:

•SSfJTL^and value Cos. is calculated on specific iden.ifica.ion basis except colour

chemicals, fuel consumable stores & spare and trading goods being sublimation paper on FIFO basis Finished ooods and Finished goods include raw materials and other costs incurred in bringing the inventones to their present toSton ⁹

^{,he 8S,ima,M} ““"9 Pto for inventories less all estimated costs o, completion and costs

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o) Investments and other financial assets:

Classification:

The Company classifies its financial assets in the following measurement categories'

^ ^^ °^,te "come, orIhropgh pro«, o,loss,

Debt instruments:

Initial recognition and measurement'

Subsequent measurement:

c^hX^emchaSSi^{^,,}o';^,me^sTThem STnm ^bUSi"^{eSS ,he C}°^mpan> <°^r ^naging ,he esse, and me

instruments ^{66 measurement} categories into which the Company classifies its debt

Measured at amortised cost-

^a"^se‘^{s that} ff ^{held within a} ^siness model whose objective is to hold financial assets in order to collect contractual cash flows that are solely payments of principal and interest, are subsequently measured at amortised cost usinq the fir method less^impairment, ,1 any. the amortisation o, EIR and loss adding from impairment, if any is recog“ “S o“nd

Measured at fair value through other comprehensive income fFVQCIV

f^sets *!;^{at arebeld within a business model whose} objective is achieved by both, selling financial assets and collecting

reused ^ ^ ~

Measured at fair value through profit or loss fFVPLV

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Equity instruments:

The Company subsequently measures all investments in equity instruments other than subsidiary companies associate comoanv

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Investments jn. subsidiary companies, associate companies and joint venture comnany

impairment of financial assets:

The Company assesses on a forward looking basis the expected credit losses associated with its financial assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a

significant increase in credit risk. Note no. 42 details how the Company determines whether there has been a significant increase in credit risk.

The Company follows 'simplified approach' for recognition of impairment loss allowance on trade receivables The application of J™2^{fied ap}P^{roach does} not require the Company to track changes in credit risk Rather, it recognises impairment loss allowance based on lifetime Expected Credit Loss at each reporting date, right from its initial recognition.

Derecognition:

A financial asset is derecognised only when the Company has transferred the rights to receive cash flows from the financial asset the asset exp'res °r retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the Company has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised through the Statement of Profit and

nl°K^{0 he}f^r^°^^Prehen,^{SIVe income as a}PP^|lcable- Where the Company has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.

Where the Company has neither transferred a financial asset nor retained substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset. Where the

Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in ine Tinanciai ass&t.

Financial liabilities:

i) Classification as debt or equity

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument

ii) Initial recognition and measurement:

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument Financial liabilities are initially measured at the fair value.

iii) Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the effective interest rate method. Financial liabilities carried at air value through profit or loss are measured at fair value with all changes in fair value recognised in the Statement of rrotit ana Loss.

iv) Derecognition:

A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

p) Offsetting financial instruments:

Fmancia! assets and liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally enforceable simultaneously^{16 reC}°⁹ⁿ'^{Sed amounts and there IS an} intention to settle on a net basis or realise the assets and settle the liabilities

q) Borrowings:

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down In this case, the fee is deferred until the draw down occurs.

Borrowings are removed from the Balance Sheet when the obligation specified in the contract is discharged, cancelled or expired The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and illcome Kexpenser¹ ' ^{9 a}"^{y non_cash assets tranaf}erred or liabilities assumed, is recognised in profit or loss as other

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. ^ ⁷

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r) Borrowings Costs:

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are caDitalised

*"2 2,^P to complete and prepare the asset for its intended us. or sale Sfy™ asseB 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 borrowinn costs eligible for capitalisation. Other borrowing costs are expensed in the period in which they are incurred ⁹