2. SIGNIFICANT ACCOUNTING POLICIES
2-1 Basis of Preparation:

~es assess vszxsss^zzxsr** - -—- •—

2-2 Usa of estimates and Judgments

SfmSE^⁰* °^{f fin} f^nciaJ statements >n conformity with generally Accepted Accounting Principles require

wnlingent^tShSK oS JS ^that,^afff?^th* ^{rffpcrted a}™^{unls cf aS5ets and} febBitta and £sclosu?e of

SndnSSl M ^bl- on foe date of finance! statements and the reported amounts of revenues and expenses

nrd o⁹J^at ^PC>r1in9 P⁹™?' 5^2! ^{resutts could tflffer from these} estimates and differences between actual results
and estimates are recognized in the periods in which the results are known / materialise.

^ha^ ^b*^e" ^{cra&&l(led as CUffen[ or} « per the Company's normal opening

3J£l2?5 . ^of P^roduc^ and the lime between the acquis Ilian of assets tor processing aSd the?

^{3nd CS5h the C}°^{mpany ha5} ascertained its operating cycle as 12 months for (he

purpose of current - noncurrent classification of assets and liabilities,

2.3 Basis of Preparation

JEJES; ^5taten,efl'^s are prepared In accordance with (he historical cost convention, except for certain
^maa^^{ur9d 31} fair values, as explained in the accounting policies below. The financial statements
are presented in Indian Rupees (INR) which is also the Company’s fonclfcmal currency.

iJH ^P"^Ce S ^W°^{tld bB} rsc*^wed t0 seN an «** ^or P** to Iransfer a liability Jn an orderly

SjSS or S™iPdS^art' ih^antS ? I* ™^surwnmt date- of whether that price is direct!?

2JSSS52 5,- ,^{d 9 a}1^{D er valua}'^,0,1 technique In estimating ihe fair value of an asset or a Jiabirity*

£,?X2J SC T? ^{acroun tbe} ^^sraf^^ of the asset or liability If market participants would take
those characteristics Into account when pricing Ihe asset or llabfliiy at the measurement date.^P

^{2 A} Financial instrument. Financial assets. Financial li^biiin^

S^“5SlII!!SSr^3ra ”°°⁹ⁿⁱ^^wlKn *"^Oompan'^{bmm s} »-*^tto ™*»**

S ^deL^ei“;fⁿ'^Md *^{hen the J}‘^igh(s 10 re*^{ive benefits} have expired or been transferred and

Si transferred substantially all risks and rewards of ownership of such financial asset. Financial

^y * •**»**•^{is w,Kn the} "*«“ ** i.

Classification

SSRK5&iSS5KSSS."r“^assaB "^ln,,ial ™⁹ⁿ®"-^Th6 *"*' ^ «

* ^{maasi,red at (air whB ,ei}'^{her ihr}"^ug'’^oiher i™». (oci), _w

• Those subsequently measured at amortised cost

Measurement

Subsequent measurement of is in accordance with the Company's business model for managing the asset
and (he contractual cash flows characteristics of the asset. There are three measurement categories Into
which the company may classify ils debt instruments:

* Amortised Cost: Assets which are held within the business model of coil action of Contractual cash flows and

where teose cash flows represent payments solely towards principal and interest on {he principal amount
outstanding.

* ^Fa,r \^allJG through Other Comprehensive Income; Assets that are held within a business model of
coliecflon of contractual cash Hows and for selling and where (he assets' cash flow represents solely payment
or principal and interest on Ihe principal amount outstanding.

* Fair Value through Profit or Loss: Financial assets which are not classified as measured at amortised cost
or fair value Ihrough othEr comprehensive Income are classified as fair value through profit or loss,

Loans and Receivables

Loans and receivables are non - derivative Financial asset with fixed or determinate payments that are not
quoted in an active market. Loans and receivables are initially measured at transaction value, which is the fair
value and subsequently retained at cost less appropriate allowance for credit losses as most loans and
receivables of the Company are current in nature. Where significant, non - current loans and receivables are
accounted for at amortised cost using Effective interest ratE method less appropriate allowance for credit
fosses, where the maturity period is specified.

Investments in Equity Instruments:'

In case of investments in subsidiaries, joint ventures and associates the Company has chosen to measure its
investments at deemed cost,

2.5 Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable, which Is when it is earned
and no significant uncertainty exists as to its realisation or collection.

Dividend and interest income:

Dividend income from investments is recognised when the shareholder's right to receive payment has been
established (provided that it is probable that the economic benefits will flow to the Company and the amount of
income can be measured reliably},

interest income from a financial asset is recognized when it is probable that (he economic benefits wili flow to
Ihe Company and the amount of income can be measured reliably. Interest income is accrued on a time basis,
by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that
exactly discounts estimated future cash receipts Ihrough the expected life of the financial asset to teat asset's
net carrying amount on initial recognition.

2.6 Foreign currency transactions

The functional currency of the Company is Indian Rupees which has been determined on the basis of the
primary economic environment in which it operates.

In preparing the financial statements of the Company, transactions in currencies ether than the entity's
functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the
transactions. At the end of each reporting period, monetary items denominated in foreign currencies are
retranslated at tee rates prevailing at that date. Non-moneiary Items carried at fair value teat are denominated
in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined.
Non-monetary Items ihal are measured in terms of historical cost in a foreign currency are not retranslated,

Exchange differences on monetary items are recognized in Statement of Profit and Loss in the period in which
they arise except for:

* Exchange differences on foreign currency borrowings relating to assets under construction for future
productive use, which are included in the cost of those assets when they are regarded as an adjustment to
interest costs on those foreign currency borrowings:

* Exchange differences on transactions entered frtto In order to hedge certain foreign currency risfcs and;

* Exchange differences on monetary items receivable from or payable 10 a foreign operation for which
settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign

^ly^l*»* W“V U«J* di>mprehen₅[v_e incom. n| rortassifed from equity to the
atatement or Profit snd Loss on repayment of the monetary items. ⁴ J

2.7 Borrowing costs

2™S£"? ^drrecl,y aJWbotahte to the acquisition, ooratructtofl or production of qualifying assets which

SSS5JS.S!Ji^!f*^{n,y a S}'^{JbS!anlfaf pe,!od} * ^{lime (}° 9^0t ready to ttwir intended IT?!*!*

added to Ihe cost of those assets, unh! such lime as ihe assets are substantial ready for their intended use

^b°^rr^^ng °°^{S,S a}™ ^w<*^nI“^{d in the} "f M and Loss in the period in which they are

^th0 T⁰" £^b0T^ ^{C0£tS eli0ibJe far} m the actual borrowing

5JSI ™ ^{d 0 th},^{at du}™9 ^the Period lees any investment income on the temporary Investment o(

^Int⁹?' ^ ^e*^{tent 1bat} an eflEily borrows funds specifically for Uie purpose of obEaini-in a
SSSSSte'iBSbfo*¹" ^C?T^Pany ,^b0[TOVW severally and uses (he funds for obtaining a qualifying asset
on th£! as&ei ⁹' * °^{r Capita|lEab0n are} determined by applying a capltalafloh rate lo (he expenditures

SSSaTCftKS^-" ^{of torro}*^{h9 c}“^,s mm >-“¦^ln “ -*¦*—

Z.STaxatfon

income tax expense represents the sum of [he tax currently payable and deferred tax.

Current tax

teTJtobte to SXXE,IStf* °" ** 'f^saMe *>'»• *Mmins) in arortno,wild

^A applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable (ax laws,

^{pBid if}* “™^r?^a"^ce ™^{|h ;he 13X} l*«w gives future economic benefits in

Sjt ftTSSJfSf Zl T™ ^!y‘^{iS oonBa#recr as} a" w*t ^inpere & convincing evidence

ShLl whenTtl bU SLSSSL A?™ ^tBK Accordlrt9^' ^{MAT is} recognized as an asset In the Balance
^5nwt when it is highly probable that future economic benefit associated with it will flow lo the Company.

Deferred tax

tteScial it_a^rtem^!,nS^rlh^{temparary di}!^{erenCSS between lhe ca}^rng amounts of assets and liabilities in
ax SSL ^rrespondmg la* bases used in the computation of taxable profit Deferred

^s“ _u⁰2?^aIi₁^fs“^{or,[Md for aFI tetable} ^mporary differences Deferred tax assets are generally
2SH 5 ⁰ SS¹??* ^[emporafV differences lo the extent that it is probable that taxable profits wTlr be
SS; £!? ^{th0$e d}eductibi_e temporary differences can be utilized. Such deferred tax assets and

J2JS JJ-UJJJ^?c°9ⁿ'^Eed « the temporary difference arfees from the inMal recognition (other than in a

^{0 lranaaction lhat} ^Is nether the taxable profit nor the

(fro SSleS^SJSSS^ "^{8 n}°‘ "***”* ^{lf ,he} ’""“"l' '^)i,,eren“ ^{arlscs from}

5JSS. ^{3X liabi,1tie& are} recognized for taxable temporary differences associated with investment in
rave^^hftP^nn^^u'J^ ^rntere3‘^s,^rr|J J'^oirtl «"!««, except where the Company is abie to control the
fanmUs^taireS? ^pr,°^{bable that lhB lem}Porary difference will not revere in the

f^S 5 m-^>ng ff0m tfKfUCtfcta ^mperery differences associated with such

£^{the eKtent} ^^at 11 is pr3bable 1bat there be sufftciem

r_e,sfilh?tef₀,K^bSuro. '^he '"^{marl MeKmt> s}"^> they afe

^iS ’T^T ^{31 ,hE eMl} o'«* roporting period and roduced to inn
fe be re-olered ⁹ probabie that sufficient taxable profits will be available to allow afl or part of the asset

Deferred tax assets and liabilities are measured at the lax rates that are expected to apply in the period irr
which the liability is settled or the asset realized, based on tax rates [and tax laws) |h*| haw been enacted or
substantively enacted by Ihs and Of the reporting period,

The measurement of deferred [ax liabilities and assets reflects the lax consequences that would follow from
the manner in which the Company expects, at the end of (he reporting period, lo recove: or settle !he carrying
a moult of its assets and liabilities.

For the purposes of measuring deterred tax liabilities and deferred tax assets on non-depreciable assets, the
carrying amounts of such properties are presumed to be recovered entirely through sale.

Current and deferred tax For the year

Current and deferred tax are recognized in profit or loss, except when they are related to items that are
recognized in other comprehensive Income or directly in equity, in which case, the currant and deferred tax are
atso recognized in olher comprehensive income or directly in equity respectively. Where current tax or
deferred tax arses from the initial accounting for a business com bination, ihe tax affect is Included In the
accounting lor the business combination.

2.9 Proparty, plant and equipment

The cost of property, plant and equipment comprises or

• Purchase price net of any trade discounts and rebates, any import duties and other taxes [other lhan
those subsequently recoverable from the tax authorities),

• Any directly attributable expenditure on making the asset ready for its intended use. including relevant

borrowing costs for qualifying assets and '

• Any expected costs of decommissioning.

Expenditure incurred after the property, plant and equipment have been put into operation, such as repairs
and maintenance, are charged to Ihe Statement of Profil and Loss in the period in which |he costs are
incurred. Major shut-down and overhaul expenditure is capitalized as the aclivities undertaken improve the
economic benefits expected to arise from the asset.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits
are expected to arise from the continued use of Ihe asset. Any gain or loss arising on Ihe disposal or
retirement of an item of property, plant and equipment is determined as Ihe difference between Ihe sales
proceeds and the carrying amount of the asset and is recognized In Statement of Profit and Loss,

Assets in the course of construction are capitalized in the assets under construction account. At the point
when an asset is operating at management's intended use. the cost of construction is transferred to the
appropriate category of property, plant and equipment and depredation commences. Costs associated with
the commissioning of an asset and any obligatory decommissioning costs are capitalized where ihe asset is
available for use but incapable of operating at norma! levels unlit a period of commissioning has been
completed. Revenue generated from production during Ihe trial period is capitalized.

The Company has elected to continue with the carrying value for all of its property, plant and Equipment as
recognized i.n the financial statements as at the date of transition to fnd AS, measured as pe: the previous
GAAP and use that as Its deemed cost as at the date of transilion.

Capital workrin-proqress:

Projects under which tangible fixed assets are not yet ready tor Ihefr intended use are carried at cosl,
comprising direct cost, related incidental expenses and attributable Interest.

1.10 Depreciation and amortization

Depreciable amount for assets is Ihe cost of an asset, or other amount substituted for cost, less its eslimaled
residual value. Depreciation is provided on a straight-line method as per Ihe uselul life prescribed in Schedule
II to the Companies Act, 2013 except in respect of (he certain categories of assets, In whose case ihe life of
Ihe assets has been assessed as under based on technical advice, taking into account ihe nature of the asset,
tbe estimated usage gf the asset, (he operating conditions of the asset, past history of replacement,
anticipated lechnglagicai changes, manufacturers warranties and maintenance support, etc, (Refer Note 15)

intangible assets are amortized over their estimated useful lives an straight line melhod.

Freehold land is not depreciated. Leasehold lard is amortized over ihe period of the lease, except where the
lease Is convertible to freehold land under lease agreement at future dates at no additional cost.

Major overhaul costs are depreciated over the estimated life of the economic benefit derived from the
overhaul The carrying amount of the remaining previous overhaul cost is charged to the Statement of Profit
and Loss If the next overhaul is undertaken earlier than (he previously estimated life of the economic benefit.

The Company reviews ihe residual value, useful lives and depreciation method annually and, if expeclations
differ from previous estimates, the change is accounted for as a change in accounting estimate on a
prospective basis.

Impairment of Property, plant and equipment and other intangible assels,

At the end Of each reporting period, the Company reviews the carrying amounts of its tangible and Intangible
assets lo determine whether there is any indication that those assets have suffered an impairment toss, If any
such indication exists, the recoverable amount of Ihe asset re estimated in order lo determine the extent of the
Impairment loss (If any). Where it is not possible to estimate the recoverable amount of an individual asset, the
Company estimales the recoverable amount of the cash-generating unit lo which the asset belongs, Where a
reasonable and consistent basis of allocation can be identified, corporate assets are also allocated lo
Individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units
forwhich a reasonable and consistent allocation basis can be identified.

2,11 intangible assets:

Intangible assels with indefinite Useful lives that are acquired separately are carried at cost loss accumulated
Amortization and accumulated impairment losses. Amortization Is recognized on a straight-tine basis over their
estimated useful lives. The estimated useful rife and Amortization method are reviewed al Ihe end of each
reporting period, with the effect of any changes in estimate being accounted for on a prospective basis
Intangible assets with indefinite useful lives lhat are acquired separately are carried al cost less accumulated
impairment losses

Recoverable amount Is the higher of fair value less costs to sell and value in use. In assessing value in use,
the estimated future cash flews ere discounted to their present value using a pre-tax discount rate that reflects
current imarkEt assessments of the time value of money and Ihe risks specific to the asset for which the
estimates of future cash flows have not been adjusted,

If [he recoverable amount of an asset (or gash-generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (or cash-generating unit) is reduced to Its recoverable amount, An
impairment loss is recognized immediately in the Statement of Profit and Loss, unless the relevant asset is
carried at a revalued amount, in which case the Impairment loss is treated as a revaluation decrease,

Where an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit)
is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does
not exceed the carrying amount that would have been determined had r.o Impairment loss been recognized for
(he asset [o; cash-generating unit) in prior years. A reversal of an impairment loss Is recognized immediately
in the Statement of Profit and Loss, unless the relevant asset is carried at a revalued amount, In which case
the reversal of the impairment loss is treated as a revaluation Increase.

Derecognition of intangible assets:

An intangible asset is derecognized on disposal, or when no future economic benefits are expected (Tom use
or disposal, Gains or losses arising from derecognition of an intangible asset, measured as the difference
between the net disposal proceeds and the carrying amount of Ihe asset, are recognized in ihe Statement of
Profit and Loss when the a see! is derecognized.

2-12 Employee benefits

Retirement benefit costs and termination benefits

Payments to defined contribution retirement benefit plans are recognized as an expense when emolovees
1m^I,Sf^e,ah^d service entitling them to (he contributions. For defined benefit retirement benefi' p

ssrff yafgjy ^,|>*E?«£₁"2'«*>»** js“ss?vst

“JJJ the ^VSl 2jSL JF* reportrhg period. Remeamirsment, composing actuarial gains end

--rfvsasa-jsss? r«ss?

?ihⁱⁿh^W® " °⁵! £ ‘^{Ne peri0(! 0f 3 pJan} amendment. Net interest is calculated by applying ‘be

2JX3^-*S3E*" ^{01 ,he pe,}“ * ^{the defi}"^ed bene"SSStSSi

* S?3£iS}J^{JdlnS SefViCe C0St}' ^past 5erviee cq5t- ^{as we}" ^a& 9^aina «** tows cn curtailments

¦ net interest expense or income; and

* rent ea sure ment.

U?nrn^^Ph^ny 5[^{8SH1lS [he nKl} K™* components of defined benefit costs in profit or loss in the line item
empfeyee benefits expenses. Curtailment gains and losses are accounted for as past service costs The

surXTn 2? ^sta!^emen' ^c.^f ^snttal !>^ositi°n repots the actual deficit or

surplus rn me Company s defined benefit plans. Any surplus resultinq from this calculation is li-nlterf

T*^*¦ '"^{m - rBtads S} MtEifiSK S£

JJJ5J2?£5ⁿi ^{A bl Jty for a lerm!n}»t^ benefit is recognized at (he earlier of when the entity car
nojortgsr Withdraw the offer of the termination benefit and when the entity recognises any related restructuring

Short-term and other long-term employee benefits

¹⁰ ™S™^{in rES}P'^cl “< ”9“ and nun annual leave ana

ErpSS ££&£ SEEK"^-" ^{at me l,nd[s}“^,jr,ted ™‘* »¦ **¦»«

lAMifearagyiiand Inr»p«ttiriKrt-lemwnploye. benrftnara measuredntn, undlscourled amounlof
rne oenenrs expected to be paid in exchange for the refated service,

1 "*“[ Sf'T^iener,,s are meas“^{red al} *¦ P™*W« of *e
™_P™“_S*°^ba ™^{de by 0,8 o<}"^np*ⁿ'ⁱⁿ °^f =“'** »™^id«i b,

2*13 Share-based payment arrangements

^{others pro,}“^d“^{,wi8r seddcas are wed} * **

The fair value determined a! the grant date of the equity-settled share-based payments is expensed on a

SJa r_v«t⁵'w,th^Va^r SJZJS Eh* '*“*£ °^{n 1}'^{16 C}°^mpany’^{S eStirTlste} instruments that will

eventual y vest, wilh a corresponding Increase In equity. At the end of each reporting period the Comoanv

?S estiSfes If anlTy^{eXpepted to} ^ of tfie'revision of the

estlmato2SK ^{qr Jqss tdal lhe} ^tative ^pense reflects the revised

estrmate, with a corresponding adjuslmentto the equty-sdtlied employee benefits reserve,

SffSfee nni^^en?r^{d PaVfT,ent trJ}?^3aCtlCtr15 *^{#h partNis ather than} BA measured at the fair

ujif® ^gDods ot sewses received, except where that fair value cannot be estimated reliably in which

Obtains Hha^SJST™ ‘t* ^f3l^^value,^{qf 1,16 epiiit}V instruments granted, measured at the date the entity
ooiams itie goods or the counterparty renders the service. *

inStt¹SjfattatetrftSiS'i,! ^liabI?^VI^{s re,:09niiedforthe}9^{Dods 0f servi}«5acquired, measured
dale Df Sli ^m^nt h t ^Mh i ^Ai ^{hS end 0f each reporti}^ P^^r]ad until the liabifity Is settled, and at the

states S and ESSST* ^remEaSlire^ ^{Wfth any} °^han^ ^{in fair valu&} ™«S^*•

2,14 Investments

'nvestments'³^ ^{Cf33Sified as CUffent} 07 tong-term in accordance with Accounting Standard 13 'Accounting for

Current investments are staled at lower of cost and fair value, Any reduction In the carrying amount and any
reversals of such reductions are charged or credited to the profit and loss account.

Long Isrm Investments are slated at cosL Provision for diminution is made to recognize a decline other than
temporary, in the value of such investments.