Accounting Policies of Aether Industries Ltd. Company

Mar 31, 2025

2. Summary of material accounting policies

The Ind AS Financial Statements comprise of the
Audited Statement of Assets and Liabilities as at March
31, 2025 and as at March 31, 2024, the related Audited
Ind AS Statement of Profit and Loss (including Other
Comprehensive Income), the Statement of
Changes in Equity, and the Statement of Cash Flows for
the year ended March 31, 2025 and March 31, 2024
respectively and the Significant Accounting Policies
and Other Financial Information.

These Financial Statements have been prepared as
required under the SEBI ICDR Regulations prepared in
terms of the requirements of: (a) Section 26 of Part I of
Chapter Ill of the Companies Act, 2013 (the "Act"); (b)
relevant provisions of the SEBI ICDR Regulations; and
(c) the Guidance Note of Reports in Company

Prospectuses (Revised 2019) issued by the Institute of
Chartered Accountants of India (ICAI) (the "Guidance
Note").

2.1 Basis of preparation and presentation of financial
statements

Compliance with Ind AS

The Standalone Financial Statements are prepared in
accordance with Indian Accounting Standards ("Ind
AS"), under the historical cost convention on the
accrual basis except for certain financial instruments
which are measured at fair values. The Ind AS are
prescribed under Section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015,
as amended and other relevant provisions of the Act.

Effective April 1, 2018, the Company has adopted all the
Ind AS and the adoption has been carried out in
accordance with Ind AS 101, First Time Adoption of
Indian Accounting Standards, with April 1, 2018 as the
transition date. The transition was carried out from
Indian Accounting Principles generally accepted in
India as prescribed under Section 133 of the Act, which
was the previous GAAP.

A. Basis of preparation

i)The Audited Ind AS Statement of Assets and Liabilities
of the Company as at March 31, 2025 and March 31,
2024 respectively and the Audited Ind AS Statement of
Profit and Loss, Audited Ind AS Statement of Changes in
Equity and Audited Ind AS Statement of Cash Flows for
the year ended March 31, 2025 and March 31, 2024
respectively (hereinafter collectively referred to as "Ind
AS Financial Information) have been prepared under
Indian Accounting Standards ("Ind AS") notified under
Section 133 of the Companies Act, 2013 (the "Act") and
other relevant provisions of the Act as amended from
time to time

(ii)The audited financial statements of the Company

as at and for the year ended March 31, 2025 prepared
in accordance with recognition and measurement
principles under Indian Accounting Standard (''Ind AS'')
34 "Interim Financial Reporting", specified under section
133 of the Act and other accounting principles
generally accepted in India, which have been
approved by the Board of Directors at their meeting
held on May 2, 2025.

The Board of Directors approved the Financial
Statements as per the Ind AS, for the year ended on
March 31, 2025 along with Financial Statements for the
year ended March 31, 2024 and authorised to issue the
same vide resolution passed in the Board Meeting held
on May 2, 2025.

B. Basis of measurement

The Financial Statements have been prepared on
historical cost basis considering the applicable
provisions of Companies Act 2013. The exceptions to
the same are:

- certain financial assets and liabilities (including
derivative instruments) that are measured at fair
value; and

- net defined benefit (asset) / liability that are
measured at fair value of plan assets less present
value of define benefit obligations.

C. Current and non-current classification of assets
and liabilities

The Assets and Liabilities and the Statement of Profit &
Loss, including related notes, are prepared and
presented as per the requirements of Schedule III
(Division II) to the Companies Act, 2013. Al assets and
liabilities have been classified and disclosed as current
or non-current as per the Company''s normal
operating cycle and other criteria set out in Schedule
III. Based on the nature of products and the time
between the acquisition of assets for processing and

their realization into cash and cash equivalents, the
Company has ascertained its operating cycle as
twelve months for the purpose of current - non current
classification of assets and liabilities.

D. Functional and presentation currency

The functional and presentation currency in these
Financial Statements is INR and all amounts are
rounded to nearest millions, up to 2 decimal places,
unless otherwise stated.

E. Use of judgements, estimates and assumptions

The preparation of Financial Statements in conformity
with Ind AS requires management to make
judgements, estimates and assumptions that affect
the reported amounts of revenue, expenses, current
assets, non-current assets, current liabilities, non¬
current liabilities and the disclosure of the contingent
liabilities on the date of the preparation of Financial
Statements. Such estimates are on a reasonable and
prudent basis considering all available information,
however due to uncertainties about these judgements,
estimates and assumptions, the actual results could
differ from those estimates. Information about each of
these estimates and judgements is included in
relevant notes. Any revision to accounting estimates is
recognised prospectively in current and future periods.

Judgements

Judgements: Information about judgements made in
applying accounting policies that have the most
significant effects on the amounts recognised in the
Financial Statements is included in the following notes:

Note No. 44 - classification of financial assets:
assessment of business model within which the assets
are held and assessment of whether the contractual
terms of the financial assets are solely payments of
principal and interest on the principal amount

outstanding.

Assumptions and estimation uncertainties

Information about assumptions and estimation
uncertainties that have a significant risk of resulting in
a material assumptions and estimation uncertainties
are provided here, whereas the quantitative break-ups
for the same are the notes mentioned below:

- Note 3 and Note 6 - Useful life of depreciable assets,
Property, Plant and Equipment and Other Intangible
Assets.

- Note 38 - Recognition of contingencies, key
assumptions about the likelihood and magnitude of
outflow of resources.

- Note 37 - Recognition of tax expenses including
deferred tax.

- Note 45 - Defined benefit obligation, key actuarial
assumptions.

- Note 12 - Impairment of trade receivables.

- Note 10 - Valuation of Inventories.

Going concern assumption

These Financial Statements have been prepared on a
going concern basis. The management has, given the
significant uncertainties arising out of the various
situations, assessed the cash flow projections and
available liquidity for a period of at least twelve
months from the date of this Financial Statements.
Based on this evaluation, management believes that
the Company will be able to continue as a "going
concern" in the foreseeable future and for a period of
at least twelve months from the date of these Financial
Statements based on the following:

- Expected future operating cash flows based on
business projections, and

- Available credit facilities with its bankers

Based on the above factors, the management has

concluded that the "going concern" assumption is
appropriate. Accordingly, the Financial Statements do
not include any adjustments regarding the
recoverability and classification of the carrying
amount of assets and classification of liabilities that
might result, should the Company be unable to
continue as a going concern.

On November 29, 2023, an accidental fire broke out at
our Manufacturing Facility - Il which is situated at Plot
No. 8203, Road No. 8, GIDC Industrial Estate, Sachin,
Surat - 394230, Gujarat (India).

This fire accident has adversely impacted the Site II,
mainly damaging Plant 2 (fully), Plan 1 and Tank Farm
(partially). This Site - II had been contributing the major
share to revenue from operations and hence, the fire
accident has hampered the revenues of the
Company in FY 2023-24, as the entire Site -II was
closed for at least three months. Revocation
permission for unaffected plants at Site - ll were
received from GPCB and DISH, which helped the
Company revive the Site for last month only.

The Company has, due to this fire accident, suffered
loss of Fixed Assets (Plant & Machinery, Equipment,
Furniture & Fixtures, and others), Inventories (mostly
Semi Finished and Finished Goods at the shop floor)
and Loss of Profit.

The Company is adequately insured to the extent of
damage occurred in the fire accident, including
impacted property, plant & equipment, inventories and
the loss of profit. The total claim lodged by the
Company amounts to Rs. 1,000 million towards loss
of stocks, loss of assets and loss of profit.

The impact of loss is being assessed for the fixed
assets and the survey is ongoing by the insurance

surveyor, hence the loss is yet to be ascertained. Loss
of inventory is Rs. 138.97 million due to this fire accident,
which has been assessed and written off for in FY
2023-24 itself.

The Company has already received a claim of Rs. 210
million towards loss of assets, being on account
payment on submission of documents of assets lost by
fire. The Company has also received a claim of Rs.
112.46 million towards claim for loss of stocks. The
further assessment of claims is in progress and the
Company is confident to get the same settled from
insurance company in FY 25-26.

This fire accident has not affected our "Going Concern"
assumption. Accordingly, the Company will continue
as a going concern.

Reclassification

The Company reclassifies comparative amounts,
unless impracticable and whenever the Company
changes the presentation or classification of items in
its financial statements materially. No such material
reclassification has been made during the year.

2.2 Property, plant and equipment
Recognition and measurement

The Company has elected to continue with the
carrying value of Property, Plant and Equipment (''PPE)
recognised as of transition date measured as per the
Previous GAAP and use that carrying value as its
deemed cost of the PPE as on the transition date.

Property, plant and equipment are stated at cost less
accumulated depreciation and accumulated
impairment losses. Cost includes purchase price (after
deducting trade discount / rebate), non-refundable
import duties and taxes, cost of replacing the
component parts, borrowing costs and other directly
attributable cost to bringing the asset to the location
and condition necessary for it to be capable of
operating in the manner intended by management.

Spares parts procured along with the Plant and
Equipment or subsequently having value of Rs. 50,000
or more individually which meets the recognition
criteria of PPE are capitalized and added to the
carrying amount of such items. The carrying amount of
those spare parts that are replaced are de-recognised
when no future economic benefits are expected from
their use of upon disposal. If the cost of the replaced
parts is not available, the estimated cost of similar new
parts is used as an indication of what the cost of the
existing part was when the item was acquired.

An item of PPE is de-recognised on disposal or when no
future economic benefits are expected from use. Any
profit or loss arising on the de-recognition of an item of
property, plant and equipment is determined as the
difference between the net disposal proceeds and the
carrying amount of the asset and is recognized in
Statement of Profit and Loss.

Subsequent costs

The cost of replacing a part of an item of property,
plant and equipment is recognised in the carrying
amount of the item if it is probable that the future
economic benefits embodied within the part will flow to
the Company and its cost can be measured reliably.
The carrying amount of the replaced part is de¬
recognised. The cost of the day-to-day servicing the
property, plant and equipment are recognised in the
statement of profit and loss as incurred.

Disposal

An item of property, plant and equipment is de¬
recognised upon the disposal or when no future
benefits are expected from its use or disposal. Gains

and losses on disposal of an item of property, plant
and equipment are determined by comparing the
proceeds from disposal with the carrying amount of
property, plant and equipment, and are recognised net
within other income / expenses in the statement of
profit and loss.

Depreciation

The depreciable amount of the asset is determined
after deducting its residual value. Where the residual
value of an asset increases to an amount equal to or
greater than the asset''s carrying amount, no
depreciation charge is recognised till the asset''s
residual value decreases below the asset''s carrying
amount. Depreciation of an asset begins when it is
available for use, i.e., when it is in the location and
condition necessary for it to be capable of operating in
the intended manner. Depreciation of an asset ceases
at the earlier of the date that the asset is classified as
held for sale in accordance with IND AS 105 and the
date that the asset is de-recognised.

The insurance claim is being assessed at the moment
and hence, the depreciation as per the Companies Act,
2013 and the Income Tax Act, 1961 is being continued to
charge on the entire book value and written down
value respectively.

The management has estimated the useful life of the
Tangible Assets as mentioned below:

Asset class Years

Factory building 30

Other building 10

Plant and machinery 20

Plant and machinery (Pipelines) 15

Office equipment 5

Factory equipment 10

Computer equipment (servers & networks) 6

Asset class Years

Computer equipment (others) 3

Other equipment 10

Furniture & fixtures 10

Vehicle equipment 8

Impairments of non-financial assets

The Company assesses at each balance sheet date
whether there is any indication that an asset or cash
generating unit (CGU) may be impaired. Indefinite life
intangibles are subject to a review for impairment
annually or more frequently if events or circumstances
indicate that it is necessary. If any such indication
exists, the Company estimates the recoverable
amount of the asset. The recoverable amount is the
higher of an asset''s or CGU''s fair value less costs of
disposal or its value in use. Where 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 the 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 the fair value less
costs of disposal, recent market transactions are
considered.

An impairment loss is recognised if the carrying
amount of an asset or CGU exceeds its recoverable
amount, Impairment losses are recognised in the
statement of profit and loss.

If at the balance sheet date there is an indication that
a previously assessed impairment loss no longer exists,
an impairment loss is reversed only to the extent that
the asset''s carrying amount does not exceed the
carrying amount that would have been determined,

net of depreciation or amortisation, if no impairment
loss had been recognised.

2.3 Intangible assets
Recognition and measurement

Intangible assets are recognised when the asset is
identifiable, is within the control of the Company, it is
probable that the economic benefits that are
attributable to the asset will flow to the Company and
cost of the asset can be reliably measured.

Intangible assets acquired separately are measured
on initial recognition at cost. The cost of intangible
assets acquired in a business combination is their fair
value at the date of acquisition. Intangible assets
acquired by the Company that have finite useful lives
are measured at cost less accumulated amortisation
and any accumulated impairment losses. Intangible
assets with indefinite useful lives are not amortised, but
are tested for impairment annually, either individually,
either individually or at the cash-generating unit level.

Expenditure on Research activities is recognised in the
statement of Profit and Loss as incurred. Development
expenditure is capitalised only if the expenditure can
be measured reliably, the product or process is
technically and commercially feasible, future
economic benefits are probable, and the Company
intends to complete development and to use or sell
the asset.

Intangible assets which comprise of the development
expenditure incurred on new product and expenditure
incurred on acquisition of user licenses for computer
software are recorded at their acquisition price.

Subsequent measurement

Subsequent expenditure is capitalised only when it
increases the future economic benefits embodied in
the specific asset to which it relates.

Amortization

The useful lives of intangible sets are assessed as
either finite of indefinite.

Intangible assets i. e., computer software is amortized
on a straight-line basis over the period of expected
future benefits commencing from the date the asset is
available for its use.

The management has estimated the useful life of the
Intangible Assets as mentioned below:

Amortisation method, useful lives and residual values
are reviewed at the end of each financial year and
adjusted if appropriate.

Intangible assets are assessed for impairment
whenever there is an indication that the intangible
asset may be impaired.

Disposal

Gains or losses arising from de-recognition 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
de-recognized.

2.4 Financial assets

A. Fair value assessment

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, regardless of whether that price is
directly observable or estimated using another
valuation technique. In estimating the fair value of an
asset or a liability, the Company takes into account the
characteristics of asset and liability if market
participants would take those into consideration. Fair
value for measurement and / or disclosure purposes in
these Financial Statements is determined in such basis
except for transactions in the scope of Ind AS 2, 17 and
36. Normally at initial recognition, the transaction price
is the best evidence of fair value.

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 those 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.

Al financial assets and financial liabilities for which fair
value is measured or disclosed in the Financial
Statements are categorized within the fair value
hierarchy, described as follows, based on the lowest
level input that is significant to the fair value
measurement as a whole.

B. Subsequent measurement

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

- Financial assets measured at amortized cost

- Financial assets at fair value through OCI

- Financial assets at fair value through profit or loss

C. Financial assets measured at amortised cost

Financial assets are measured at amortized cost if the
financials 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. These financials
assets are amortized using the effective interest rate
(''EIR'') method, less impairment. 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 finance income in the Statement of Profit And Loss.
The losses arising from impairment are recognized in
the Statement of Profit And Loss.

D. Financial assets at fair value through OCI (''FVTOCI'')
Financial assets are measured at fair value through
other comprehensive income if the financial asset is
held within a business model whose objective is
achieved by both collecting contractual cash flows
and selling 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. At initial
recognition, an irrevocable election is made (on an
instrument-by-instrument basis to designate
investments in equity instruments other than held for
trading purpose at FVTOCI. Fair value changes are
recognized in the other comprehensive income (OCI).
However, the Company recognizes interest income,

impairment losses and reversals and foreign exchange
gain or loss in the Statement of Profit And Loss. On de¬
recognition of the financial asset other than equity
instruments designated as FVTOCI, cumulative gain or
loss previously recognised in OCl is reclassified to the
Statement of Profit and Loss.

E. Financial assets at fair value through profit or loss
(''FVTPL'')

Any financial asset that does not meet the criteria for
classification as at amortized cost or as financial
assets at fair value through other comprehensive
income is classified as financial assets at fair value
through profit or loss. Further, financial assets at fair
value through profit or loss also include financial
assets held for trading and financial assets designated
upon initial recognition at fair value through profit or
loss. Financial assets are classified as held for trading if
they are acquired for the purpose of selling or
repurchasing in the near term. Financial assets at fair
value through profit or loss are fair valued at each
reporting date with all the changes recognized in the
Statement of Profit And Loss.

F. De-recognition

The Company de-recognises a financial asset only
when the contractual rights to the cash flows from the
asset expire, or when it transfers the financial asset
and substantially all the risks and rewards of
ownership of the asset to another entity. If the
Company neither transfers nor retains substantially all
the risks and rewards of ownership and continues to
control the financial asset, the Company recognizes its
retained interest in the asset and an associated
liability for amounts it may have to pay.

G. Impairment of financial assets

The Company assesses impairment based on
expected credit loss (''ECL'') model on the following:

- Financial assets that are measured at amortised
cost; and

- Financial assets measured at FVTOCI

ECL is measured through a loss allowance on a
following basis:

- The 12 month expected credit losses (expected credit
losses that result from those default events on the
financial instruments that are possible within 12
months after the reporting date)

- Full life time expected credit losses (expected credit
losses that result from all possible default events over
the life of financial instruments)

2.5 Financial liabilities

The Company''s financial liabilities include trade
payable.

A. Initial recognition and measurement

Al financial liabilities at initial recognition are classified
as financial liabilities at amortized cost or financial
liabilities at fair value through profit or loss, as
appropriate. Al financial liabilities classified at
amortized cost are recognized initially at fair value net
of directly attributable transaction costs. Any
difference between the proceeds (net of transaction
costs) and the fair value at initial recognition is
recognised in the Statement of Profit And Loss.

B. Subsequent measurement

The subsequent measurement of financial liabilities
depends upon the classification as described below:

a. Financial liabilities classified at amortised cost

Financial Liabilities that are not held for trading and are
not designated as at FVTPL are measured at amortised
cost at the end of subsequent accounting periods.
Amortised 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. Interest
expense that is not capitalized as part of costs of
assets is included as finance costs in the Statement of
Profit And Loss.

b. Financial Liabilities classified as Fair value through
profit And loss (FVTPL)

Financial liabilities classified as FVTPL includes financial
liabilities held for trading and financial liabilities
designated upon initial recognition as FVTPL. Financial
liabilities are classified as held for trading if they are
incurred for the purpose of repurchasing in the near
term. Financial liabilities designated upon initial
recognition at FVTPL only if the criteria in Ind AS 109 is
satisfied.

Exports benefits are accounted for in the year of
exports based on the eligibility and when there is
certainty of receiving the same.

C. De-recognition

A financial liability is de-recognised when the
obligation under the liability is discharged /
cancelled / 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 a new liability. The difference in the respective
carrying amounts is recognized in the Statement of
Profit And Loss.

D. Offsetting of financial instruments

Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if there
is a currently enforceable legal right to offset the
recognised amounts and there is an intention to settle
on a net basis, to realise the assets and settle the

liabilities simultaneously.

Other incomes, other than interest and dividend are
recognized when the same are due to be received and
right to receive such other income is established.

2.6 Share Capital and Share Premium

Ordinary shares are classified as equity. Incremental
costs directly attributable to the issue of new shares
are shown in equity as a deduction net of tax from the
proceeds. Par value of the equity share is recorded as
share capital and the amount received in excess of the
par value is classified as share premium.

2.7 Dividend distribution to equity shareholders

The Company recognizes a liability to make cash
distributions to equity holders when the distribution is
authorized and the distribution is no longer at the
discretion of the Company. As per the corporate laws
in India, a distribution is authorized when it is approved
by the shareholders. A corresponding amount is
recognized directly in other equity.

2.8 Cash flows and cash and cash equivalents

Statement of cash flows is prepared in accordance
with the indirect method prescribed in the relevant IND
AS. For the purpose of presentation in the statement of
cash flows, cash and cash equivalents includes cash
on hand, cheques and drafts on hand, deposits held
with Banks, other short-term, highly liquid investments
with original maturities of three months or less that are
readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in
value, and book overdrafts. However, Book overdrafts
are to be shown within borrowings in current liabilities
in the balance sheet for the purpose of presentation.

The Company is banking with the below mentioned
Banks for its Working Capital and Banking

requirements:

1. ICICI Bank Ltd.

2. HDFC Bank Ltd.

3. State Bank of India

---

Mar 31, 2024

2. Summary of Material Accounting Policies

The Ind AS Financial Statements comprise of the
Audited Statement of Assets and Liabilities as at
March 31, 2024 and as at March 31, 2023, the related
Audited Ind AS Statement of Profit and Loss (including
Other Comprehensive Income), the Statement of
Changes in Equity, and the Statement of Cash Flows
for the year ended March 31, 2024 and March 31, 2023
respectively and the Significant Accounting Policies
and Other Financial Information.

These Standalone Financial Statements have been
prepared in terms of the requirements of: (a) Section
26 of Part I of Chapter III of the Companies Act, 2013
(the “Act”); (b) relevant provisions of the SEBI ICDR
Regulations; and (c) the Guidance Note on Reports in
Company Prospectuses (Revised 2019) issued by the
Institute of Chartered Accountants of India (ICAI) (the
“Guidance Note”).

2.1 Basis of preparation and presentation of
financial statements

Compliance with Ind AS

The Standalone Financial Statements are prepared in
accordance with Indian Accounting Standards ("Ind
AS"), under the historical cost convention on the
accrual basis except for certain financial instruments
which are measured at fair values. The Ind AS are
prescribed under Section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015,
as amended and other relevant provisions of the Act.

Effective April 1, 2018, the Company has adopted all
the Ind AS and the adoption has been carried out in
accordance with Ind AS 101, First Time Adoption of
Indian Accounting Standards, with April 1, 2018 a the
transition date. The transition was carried out from
Indian Accounting Principles generally accepted in
India as prescribed under Section 133 of the Act,
which was the previous GAAP.

A. Basis of preparation

(i) The Audited Ind AS Statement of Assets and
Liabilities of the Company as at March 31, 2024 and
March 31, 2023 respectively and the Audited Ind AS
Statement of Profit and Loss, Audited Ind AS
Statement of Changes in Equity and Audited Ind AS
Statement of Cash Flows for the year ended March
31, 2024 and March 31, 2023 respectively
(hereinafter collectively referred to as “Ind AS
Financial Information”) have been prepared under
Indian Accounting Standards ("Ind AS") notified
under Section 133 of the Companies Act, 2013 (the
"Act") and other relevant provisions of the Act as
amended from time to time.

(ii) The audited financial statements of the Company
as at and for the year ended March 31, 2024
prepared in accordance with recognition and
measurement principles under Indian Accounting
Standard (‘Ind AS’) 34 "Interim Financial Reporting",
specified under section 133 of the Act and other
accounting principles generally accepted in India,
which have been approved by the Board of
Directors at their meeting held on May 21, 2024.

The Board of Directors approved the Financial
Statements as per the Ind AS, for the year ended on
March 31, 2024 along with Financial Statements for the
year ended March 31, 2023 and authorised to issue the
same vide resolution passed in the Board Meeting held
on May 21, 2024.

B. Basis of measurement

The Financial Statements have been prepared on
historical cost basis considering the applicable
provisions of Companies Act 2013. The exceptions to
the same are:

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

• net defined benefit (asset) / liability that are
measured at fair value of plan assets less present
value of define benefit obligations.

C. Current and non-current classification of
assets and liabilities

The Assets and Liabilities and the Statement of Profit
& Loss, including related notes, are prepared and
presented as per the requirements of Schedule III
(Division II) to the Companies Act, 2013. All assets and
liabilities have been classified and disclosed as current
or non-current as per the Company’s normal operating
cycle and other criteria set out in Schedule III. Based
on the nature of products and the time between the
acquisition of assets for processing and their
realization into cash and cash equivalents, the
Company has ascertained its operating cycle as twelve
months for the purpose of current - non current
classification of assets and liabilities.

D. Functional and presentation currency

The functional and presentation currency in these
Financial Statements is INR and all amounts are
rounded to nearest MM, up to 2 decimal places, unless
otherwise stated.

E. Use of judgements, estimates and assumptions
The preparation of Financial Statements in conformity
with Ind AS requires management to make
judgements, estimates and assumptions that affect

the reported amounts of revenue, expenses, current
assets, non-current assets, current liabilities, non¬
current liabilities and the disclosure of the contingent
liabilities on the date of the preparation of Financial
Statements. Such estimates are on a reasonable and
prudent basis considering all available information,
however due to uncertainties about these judgements,
estimates and assumptions, the actual results could
differ from those estimates. Information about each of
these estimates and judgements is included in
relevant notes. Any revision to accounting estimates is
recognised prospectively in current and future
periods.

Judgements

Information about judgements made in applying
accounting policies that have the most significant
effects on the amounts recognised in the Financial
Statements is included in the following notes:

Note No. 44 - classification of financial assets:
assessment of business model within which the
assets are held and assessment of whether the
contractual terms of the financial assets are solely
payments of principal and interest on the principal
amount outstanding.

Assumption and estimation of uncertainties

Information about assumptions and estimation
uncertainties that have a significant risk of resulting in
a material adjustment, assumptions and estimation
uncertainties are provided here, whereas the
quantitative break-ups for the same are provided in
the notes mentioned below:

• Note 3 and Note 6: Useful life of depreciable assets,
Property, Plant and Equipment and Other Intangible
Assets

• Note 38: Recognition of contingencies, key
assumptions about the likelihood and magnitude of
outflow of resources

• Note 37: Recognition of tax expenses including
deferred tax

_• Note 46: Defined benefit obligation, key actuarial
assumptions

• Note 12: Impairment of trade receivables

• Note 10: Valuation of Inventories

Going concern assumption

These Financial Statements have been prepared on a
going concern basis. The management has, given the

significant uncertainties arising out of the various
situations, assessed the cash flow projections and
available liquidity for a period of at least twelve
months from the date of this Financial Statements.
Based on this evaluation, management believes that
the Company will be able to continue as a "going
concern" in the foreseeable future and for a period of
at least twelve months from the date of these
Financial Statements based on the following:

• Expected future operating cash flows based on
business projections, and

• Available credit facilities with its bankers

Based on the above factors, the management has
concluded that the "going concern" assumption is
appropriate. Accordingly, the Financial Statements do
not include any adjustments regarding the
recoverability and classification of the carrying amount
of assets and classification of liabilities that might
result, should the Company be unable to continue as a
going concern.

On November 29, 2023, an accidental fire broke out at
our Manufacturing Facility - II which is situated at Plot
No. 8203, Road No. 8, GIDC Industrial Estate, Sachin,
Surat - 394230, Gujarat (India).

This fire accident has adversely impacted the
Manufacturing Facility 2, mainly damaging Plant 2
(fully), Plan 1 and Tank Farm (partially). This Site - II
had been contributing the major share to revenue from
operations and hence, the fire accident has hampered
the revenues of the Company in FY 2023-24, as the
entire Site - II was closed for at least three months.
Revocation permission for unaffected plants at Site -
II were received from GPCB and DISH, which helped
the Company revive the Site for last month only.

The Company has, due to this fire accident, suffered
loss of Fixed Assets (Plant & Machinery, Equipment,
Furniture & Fixtures, and others), Inventories (mostly
Semi Finished and Finished Goods at the shop floor)
and Loss of Profit.

The Company is adequately insured to the extent of
damage occurred in the fire accident, including
impacted property, plant & equipment, inventories and
the loss of profit.

The impact of loss is being assessed for the fixed
assets and the survey is ongoing by the insurance
surveyor, hence the loss is yet to be ascertained. Loss

of inventory is Rs. 138.97 MM due to this fire accident,
which has been assessed and written off for in FY
2023-24 itself. The claim will be settled in the coming
FY 2024-25. Insurance claim for loss of profit, will be
assessed once the claim for fixed assets and
inventory is settled in FY 2024-25.

Final claim amount from the Insurance Company will
be completed in FY 2024-25 and any gain / loss will
be booked in the said financial year.

This fire accident has not affected our "Going
Concern" assumption. Accordingly, the Company will
continue as a going concern.

Reclassification

The company reclassifies comparative amounts,
unless impracticable and whenever the company
changes the presentation or classification of items in
its financial statements materially. No such material
reclassification has been made during the year.

2.2 Property, Plant And Equipment

Recognition and measurement

The Company has elected to continue with the
carrying value of Property, Plant and Equipment (‘PPE’)
recognised as of transition date measured as per the
Previous GAAP and use that carrying value as its
deemed cost of the PPE as on the transition date.

Property, plant and equipment are stated at cost less
accumulated depreciation and accumulated
impairment losses. Cost includes purchase price (after
deducting trade discount / rebate), non-refundable
import duties and taxes, cost of replacing the
component parts, borrowing costs and other directly
attributable cost to bringing the asset to the location
and condition necessary for it to be capable of
operating in the manner intended by management.

Spares parts procured along with the Plant and
Equipment or subsequently having value of Rs. 50,000
or more individually which meets the recognition
criteria of PPE are capitalized and added to the
carrying amount of such items. The carrying amount
of those spare parts that are replaced are de¬
recognized when no future economic benefits are
expected from their use or upon disposal. If the cost
of the replaced part is not available, the estimated
cost of similar new parts is used as an indication of
what the cost of the existing part was when the item
was acquired.

An item of PPE is de-recognised on disposal or when
no future economic benefits are expected from use.
Any profit or loss arising on the de-recognition of an
item of property, plant and equipment is determined
as the difference between the net disposal proceeds
and the carrying amount of the asset and is
recognized in Statement of Profit and Loss.

Subsequent costs

The cost of replacing a part of an item of property,
plant and equipment is recognised in the carrying
amount of the item if it is probable that the future
economic benefits embodied within the part will flow
to the Company and its cost can be measured reliably.
The carrying amount of the replaced part is de¬
recognised. The cost of the day-to-day servicing the
property, plant and equipment are recognised in the
statement of profit and loss as incurred.

Disposal

An item of property, plant and equipment is de¬
recognised upon the disposal or when no future
benefits are expected from its use or disposal. Gains
and losses on disposal of an item of property, plant
and equipment are determined by comparing the
proceeds from disposal with the carrying amount of
property, plant and equipment, and are recognised net
within other income / expenses in the statement of
profit and loss.

Depreciation

The depreciable amount of an asset is determined
after deducting its residual value. Where the residual
value of an asset increases to an amount equal to or
greater than the asset’s carrying amount, no
depreciation charge is recognised till the asset’s
residual value decreases below the asset’s carrying
amount. Depreciation of an asset begins when it is
available for use, i.e., when it is in the location and
condition necessary for it to be capable of operating in
the intended manner. Depreciation of an asset ceases
at the earlier of the date that the asset is classified as
held for sale in accordance with IND AS 105 and the
date that the asset is de-recognised.

The insurance claim is being assessed at the moment
and hence, the depreciation as per the Companies Act,
2013 and the Income Tax Act, 1961 is being continued

Impairments of non-financial assets

The Company assesses at each balance sheet date
whether there is any indication that an asset or cash
generating unit (CGU) may be impaired. Indefinite life
intangibles are subject to a review for impairment
annually or more frequently if events or
circumstances indicate that it is necessary. If any
such indication exists, the Company estimates the
recoverable amount of the asset. The recoverable
amount is the higher of an asset''s or CGU''s fair value
less costs of disposal or its value in use. Where 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 the 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 the fair value less
costs of disposal, recent market transactions are
considered.

An impairment loss is recognised if the carrying
amount of an asset or CGU exceeds its recoverable
amount, Impairment losses are recognised in the
statement of profit and loss.

If at the balance sheet date there is an indication that
a previously assessed impairment loss no longer
exists, an impairment loss is reversed only to the
extent that the asset''s carrying amount does not
exceed the carrying amount that would have been
determined, net of depreciation or amortisation, if no
impairment loss had been recognised.

2.3 Intangible assets

Recognition and measurement

Intangible assets are recognised when the asset is
identifiable, is within the control of the Company, it is
probable that the future economic benefits that are
attributable to the asset will flow to the Company and
cost of the asset can be reliably measured.

Intangible assets acquired separately are measured on
initial recognition at cost. The cost of intangible assets
acquired in a business combination is their fair value
at the date of acquisition. Intangible assets acquired
by the Company that have finite useful lives are
measured at cost less accumulated amortisation and
any accumulated impairment losses. Intangible assets
with indefinite useful lives are not amortised, but are
tested for impairment annually, either individually or at
the cash-generating unit level.

Expenditure on Research activities is recognised in the
statement of Profit and Loss as incurred. Development
expenditure is capitalised only if the expenditure can
be measured reliably, the product or process is
technically and commercially feasible, future economic
benefits are probable, and the Company intends to
complete development and to use or sell the asset.

Intangible assets which comprise of the development
expenditure incurred on new product and expenditure
incurred on acquisition of user licenses for computer
software are recorded at their acquisition price.

Subsequent measurement

Subsequent expenditure is capitalised only when it
increases the future economic benefits embodied in
the specific asset to which it relates.

Amortisation

The useful lives of intangible sets are assessed as
either finite of indefinite.

intangible assets i. e., computer software is amortized
on a straight-line basis over the period of expected
future benefits commencing from the date the asset
is available for its use.

The management has estimated the useful life of the
intangible Assets as mentioned below:

Asset Class Years

Software & Licenses 6

Trade Marks 4

Other Assets 4

Amortisation method, useful lives and residual values
are reviewed at the end of each financial year and
adjusted if appropriate.

intangible assets are assessed for impairment
whenever there is an indication that the intangible
asset may be impaired.

Disposal

Gains or losses arising from de-recognition 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 de¬
recognized.

2.4. Financial Assets

A. Fair Value Assessment

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, regardless of whether that price is
directly observable or estimated using another
valuation technique. In estimating the fair value of an
asset or a liability, the Company takes into account
the characteristics of asset and liability if market
participants would take those into consideration. Fair
value for measurement and / or disclosure purposes
in these Financial Statements is determined in such
basis except for transactions in the scope of Ind AS 2,
17 and 36. Normally at initial recognition, the
transaction price is the best evidence of fair value.

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 those 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 financial assets and financial liabilities for which
fair value is measured or disclosed in the Financial
Statements are categorized within the fair value
hierarchy, described as follows, based on the lowest
level input that is significant to the fair value
measurement as a whole.

B. Subsequent Measurement

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

• Financial assets measured at amortized cost

• Financial assets at fair value through OCi

• Financial assets at fair value through profit or loss

C. Financial assets measured at amortized cost

Financial assets are measured at amortized cost if the
financials 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. These
financials assets are amortized using the effective
interest rate (‘EIR’) method, less impairment.
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 finance income in the
Statement of Profit And Loss. The losses arising from
impairment are recognized in the Statement of Profit
And Loss.

D. Financial assets at fair value through OCI
(‘FVTOCI’)

Financial assets are measured at fair value through
other comprehensive income if the financial asset is
held within a business model whose objective is
achieved by both collecting contractual cash flows
and selling 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. At initial
recognition, an irrevocable election is made (on an
instrument-by-instrument basis) to designate
investments in equity instruments other than held for
trading purpose at FVTOCI. Fair value changes are
recognized in the other comprehensive income (‘OCI’).
However, the Company recognizes interest income,
impairment losses and reversals and foreign exchange
gain or loss in the Statement of Profit And Loss. On
de-recognition of the financial asset other than equity
instruments designated as FVTOCI, cumulative gain or
loss previously recognised in OCI is reclassified to the
Statement of Profit and Loss.

E. Financial assets at fair value through profit or
loss (‘FVTPL’)

Any financial asset that does not meet the criteria for
classification as at amortized cost or as financial
assets at fair value through other comprehensive
income is classified as financial assets at fair value
through profit or loss. Further, financial assets at fair
value through profit or loss also include financial
assets held for trading and financial assets designated
upon initial recognition at fair value through profit or
loss. Financial assets are classified as held for trading
if they are acquired for the purpose of selling or
repurchasing in the near term. Financial assets at fair
value through profit or loss are fair valued at each
reporting date with all the changes recognized in the
Statement of Profit And Loss.

F. De-recognition

The Company de-recognises a financial asset only
when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial
asset and substantially all the risks and rewards of
ownership of the asset to another entity. If the
Company neither transfers nor retains substantially all
the risks and rewards of ownership and continues to
control the financial asset, the Company recognizes
its retained interest in the asset and an associated
liability for amounts it may have to pay.

G. Impairment of Financial Assets

The Company assesses impairment based on expected
credit loss (‘ECL’) model on the following:

_• Financial assets that are measured at amortised
cost; and

• Financial assets measured at FVTOCI

ECL is measured through a loss allowance on a
following basis:

_• The 12 month expected credit losses (expected
credit losses that result from those default events
on the financial instruments that are possible within

_• 12 months after the reporting date)

_• Full life time expected credit losses (expected credit
losses that result from all possible default events
over the life of financial instruments)

2.5. Financial Liabilities

The Company’s financial liabilities include trade
payable.

A. Initial recognition and measurement

All financial liabilities at initial recognition are
classified as financial liabilities at amortized cost or
financial liabilities at fair value through profit or loss,
as appropriate. All financial liabilities classified at
amortized cost are recognized initially at fair value net
of directly attributable transaction costs. Any
difference between the proceeds (net of transaction
costs) and the fair value at initial recognition is
recognised in the Statement of Profit And Loss.

B. Subsequent measurement

The subsequent measurement of financial liabilities
depends upon the classification as described below:-

(i) Financial Liabilities classified as Amortised Cost -
Financial Liabilities that are not held for trading and
are not designated as at FVTPL are measured at
amortised cost at the end of subsequent
accounting periods. Amortised 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. Interest expense that is not
capitalized as part of costs of assets is included as
Finance costs in the Statement of Profit And Loss.

(ii) Financial Liabilities classified as FVTPL - Financial
liabilities classified as FVTPL includes financial
liabilities held for trading and financial liabilities

designated upon initial recognition as FVTPL.
Financial liabilities are classified as held for trading
if they are incurred for the purpose of repurchasing
in the near term. Financial liabilities designated
upon initial recognition at FVTPL only if the criteria
in Ind AS 109 is satisfied.

Exports benefits are accounted for in the year of
exports based on the eligibility and when there is
certainty of receiving the same.

(iii) De-recognition - A financial liability is de¬
recognised when the obligation under the liability
is discharged / cancelled / 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 a new
liability. The difference in the respective carrying
amounts is recognized in the Statement of Profit
And Loss.

(iv) Offsetting of financial instruments - Financial
assets and financial liabilities are offset and the
net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention
to settle on a net basis, to realise the assets and
settle the liabilities simultaneously.

Other incomes, other than interest and dividend
are recognized when the same are due to be
received and right to receive such other income is
established.

2.6. Share Capital and Share Premium

Ordinary shares are classified as equity. Incremental
costs directly attributable to the issue of new shares
are shown in equity as a deduction net of tax from the
proceeds. Par value of the equity share is recorded as
share capital and the amount received in excess of
the par value is classified as share premium.

2.7. Dividend Distribution to equity shareholders

The Company recognizes a liability to make cash
distributions to equity holders when the distribution
is authorized and the distribution is no longer at the
discretion of the Company. As per the corporate laws
in India, a distribution is authorized when it is
approved by the shareholders. A corresponding
amount is recognized directly in other equity.

2.8. Cash Flows and Cash and Cash Equivalents

Statement of cash flows is prepared in accordance
with the indirect method prescribed in the relevant
IND AS. For the purpose of presentation in the
statement of cash flows, cash and cash equivalents
includes cash on hand, cheques and drafts on hand,
deposits held with Banks, other short-term, highly
liquid investments with original maturities of three
months or less that are readily convertible to known
amounts of cash and which are subject to an
insignificant risk of changes in value, and book
overdrafts. However, Book overdrafts are to be shown
within borrowings in current liabilities in the balance
sheet for the purpose of presentation.

The Company is banking with the below mentioned
Banks for its Working Capital and Banking
Requirements:

(i) ICICI Bank Ltd.

(ii) HDFC Bank Ltd.

(iii) State Bank of India

---

Mar 31, 2022

I.Reporting Entity

Aether Industries Limited (Aether) was incorporated on January 23, 2013 as a Public Limited Company under the Companies Act, 1956. It is engaged in the business of Specialty Chemicals and Intermediates. The products of the Company find application in various sectors like Pharmaceuticals, Agrochemicals, Specialty, Electronic Chemicals, Material Sciences, High Performance Photography etc. The CIN of the Company is U24100GJ2013PLC073434.

Between the year 2013 and early year 2015, the Promoters acquired a leased premise at GIDC Industrial Estate, Hojiwala, Sachin, Surat and established their Laboratory, Research & Development and Pilot Plant facilities. The Promoters realized at the conceptual stage itself that Specialty Chemicals is essentially a "Research & Knowledge" driven Industry, and identification of the ''Chemistries'' and ''Technologies'' before constructing the main plant, through Laboratory/R&D/Pilot facilities was a necessary pre-requisite. The period up to 2015 was hence utilized for installing Lab/R&D/Pilot Plants, developing several products/processes (up to Pilot stage), showcasing the Company''s capabilities through various International Exhibitions/Conferences etc., effecting trial samples/ supplies, facing rigorous audits from prospective International Buyers etc.

After meeting with a fair degree of success and acceptance from the targeted buyers, the Company acquired about 10,500 Sq. Mtrs. of land at the GIDC Industrial Estate, Sachin, Surat in February 2015 for setting up its main plant. The plant stood commissioned as per schedule, and the first stream went into operations in October 2016 / November 2016. Meanwhile, certain modifications/up-gradations/automations were carried out during implementation.

The Company was able to carry on with the success with which they started of with the first Project which was ready by November 2016, by way of achieving total revenues of f248.60 MM in Fiscal Year 2017, f 1,091.90 MM in Fiscal Year 2018, f2,032.77 MM in Fiscal Year 2019, f3,037.81 MM in Fiscal Year 2020 and f4,537.89 MM in Fiscal Year 2021.

The Company, because of its continuous growth and increasing demands for the products, along with the necessity to launch new products for

various applications, is once again planning for yet another expansion. For the said new expansion, the Company has procured a Plot of Land in GIDC Industrial Estate, admeasuring 5,250 Sq. Mtrs. and the same is located diagonally opposite to the current location of the Company. The new plot acquired by the Company is 8202/1 and the current one is 8203.

The Company achieved Sales Turnover of f5,900.47 MM and Total Revenue of f5,970.21 MM in Fiscal Year 2022 with an EBITDA Margin of 29.3%.

Production capacity of 6096 MTPA (March 31, 2021: 6096 MTPA) is available in our state-of-art and DCS automated manufacturing facilities. Aether is also a leading CRAMS (Contract Research and Manufacturing Services) provider, built upon technology intensive and state-of-art R&D and Pilot Plant facilities. All of our R&D, Pilot, CRAMS, and Large Scale Manufacturing facilities are capable of switching between batch and continuous process technology.

Aether is based on a core competency model of cutting-edge chemistry and technology competencies.

Aether''s business models include Large Scale Manufacturing of Speciality Chemicals, Contract Manufacturing and Contract Research And Manufacturing Services (CRAMS).

2. Summary of Significant Accounting Policies

The Ind AS Financial Statements comprise of the Audited Statement of Assets and Liabilities as at March 31, 2022 and as at March 31, 2021, the related Audited Ind AS Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity, and the Statement of Cash Flows for the year ended March 31, 2022 and March 31, 2021 respectively and the Significant Accounting Policies and Other Financial Information.These Financial Statements have been prepared as required under the SEBI ICDR Regulations prepared in terms of the requirements of: (a) Section 26 of Part I of Chapter III of the Companies Act, 2013 (the "Act"); (b) relevant provisions of the SEBI ICDR Regulations; and (c) the Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India (ICAI) (the "Guidance Note").

2.1 Basis of preparation and presentation of financial statements

Compliance with Ind AS

The Standalone Financial Statements are prepared in accordance with Indian Accounting Standards ("Ind AS"), under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. The Ind AS are prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended and other relevant provisions of the Act.

Effective April 1, 2018, the Company has adopted all the Ind AS and the adoption has been carried out in accordance with Ind AS 101, First Time Adoption of Indian Accounting Standards, with April 1, 2018 as the transition date. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Section 133 of the Act, which was the previous GAAP.

A. Basis of Preparation

(i) The Audited Ind AS Statement of Assets and Liabilities of the Company as at March 31, 2022 and March 31, 2021 respectively and the Audited Ind AS Statement of Profit and Loss, Audited Ind AS Statement of Changes in Equity and Audited Ind AS Statement of Cash Flows for the year ended March 31, 2022 and March 31, 2021 respectively (hereinafter collectively referred to as "Ind AS Financial Information") have been prepared as per the Ind AS as prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended and other relevant provisions of the Act.

(ii) The audited financial statements of the Company as at and for the year ended March 31, 2022 prepared in accordance with recognition and measurement principles under Indian Accounting Standard (''Ind AS'')

34 "Interim Financial Reporting", specified under Section 133 of the Act and other accounting principles generally accepted in India, which have been approved by the Board of Directors at their meeting held on June 16, 2022.

(iii) The audited Ind AS financial statements as at and for the year ended March 31, 2022 and March 31, 2021

using recognition and measurement principles of Ind AS, on its first time adoption of Ind AS as on the transition date April 1, 2018, and has included such adjusted financial information as comparative financial information in the financial statements for the year ended March 31, 2022 and March 31, 2021. In accordance with Ind AS 101 First-time Adoption of Indian Accounting Standard, the Company has presented an explanation of how the transition to Ind AS has affected the previously reported financial position, financial performance and cash flows (Refer Annexure VI, Note: 47).

The Board of Directors approved the Financial Statements as per the Ind AS, for the year ended on March 31, 2022 along with Financial Statements for the year ended March 31, 2021 and authorised to issue the same vide resolution passed in the Board Meeting held on June 16, 2022.

B. Basis of measurement

C. The Financial Statements have been prepared on historical cost basis considering the applicable provisions of Companies Act 2013. The exceptions to the same are :

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

- net defined benefit (asset) / liability that are measured at fair value of plan assets less present value of define benefit obligations.

C. Current and non-current classification of assets and liabilities

The Assets and Liabilities and the Statement of Profit and Loss, including related notes, are prepared and presented as per the requirements of Schedule III (Division II) to the Companies Act, 2013. All assets and liabilities have been classified and disclosed as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule III. Based on the nature of products and the time between the acquisition of assets for processing and their realization into cash and cash equivalents, the Company has ascertained its operating cycle as twelve

months for the purpose of current - non current classification of assets and liabilities.

D. Functional and presentation currency

The functional and presentation currency in these Financial Statements is T (INR) and all amounts are rounded to nearest MM, up to 2 decimal places, unless otherwise stated.

E. Use of judgements, estimates and assumptions

The preparation of Financial Statements in conformity with Ind AS requires management to make judgements, estimates and assumptions that affect the reported amounts of revenue, expenses, current assets, non-current assets, current liabilities, non-current liabilities and the disclosure of the contingent liabilities on the date of the preparation of Financial Statements. Such estimates are on a reasonable and prudent basis considering all available information, however due to uncertainties about these judgements, estimates and assumptions, the actual results could differ from those estimates. Information about each of these estimates and judgements is included in relevant notes. Any revision to accounting estimates is recognised prospectively in current and future periods.

Judgements

Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognised in the Financial Statements is included in the following notes:

Note Nos. 42 & 43-classification of financial assets: assessment of business model within which the assets are held and assessment of whether the contractual terms of the financial assets are solely payments of principal and interest on the principal amount outstanding.

Assumptions and estimation uncertainties Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment, assumptions and estimation uncertainties are provided here, whereas the quantitative break-ups for the same are provided in the notes mentioned below:

- Note 3 and Note 6: Useful life of depreciable assets, Property, Plant and Equipment and Other Intangible Assets.

- Note 38: Recognition of contingencies, key assumptions about the likelihood and magnitude of outflow of resources.

- Note 36: Recognition of tax expenses including deferred tax.

- Note 45: Defined benefit obligation, key actuarial assumptions.

- Note 12: Impairment of trade receivables.

- Note 10: Valuation of Inventories.

Going concern assumptions These Financial Statements have been prepared on a going concern basis. The management has, given the significant uncertainties arising out of the various situations, assessed the cash flow projections and available liquidity for a period of at least twelve months from the date of this Financial Statements. Based on this evaluation, management believes that the Company will be able to continue as a "going concern" in the foreseeable future and for a period of at least twelve months from the date of these Financial Statements based on the following :

- Expected future operating cash flows based on business projections, and

- Available credit facilities with its bankers

Based on the above factors, the management has concluded that the "going concern" assumption is appropriate. Accordingly, the Financial Statements do not include any adjustments regarding the recoverability and classification of the carrying amount of assets and classification of liabilities that might result, should the Company be unable to continue as a going concern.

Reclassification

The Company reclassifies comparative amounts, unless impracticable and whenever the Company changes the presentation or classification of items in its financial statements materially. No such material reclassification has been made during the year.

2.2 Property, Plant And Equipment

Recognition and measurement

The Company has elected to continue with the carrying

value of Property, Plant and Equipment (''PPE'') recognised

as of transition date measured as per the Previous GAAP and use that carrying value as its deemed cost of the PPE as on the transition date.

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes purchase price (after deducting trade discount / rebate), non-refundable import duties and taxes, cost of replacing the component parts, borrowing costs and other directly attributable cost to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Spare parts procured along with the Plant and Equipment or subsequently having value of T50,000 or more individually which meets the recognition criteria of PPE are capitalized and added to the carrying amount of such items. The carrying amount of those spare parts that are replaced are de-recognized when no future economic benefits are expected from their use or upon disposal. If the cost of the replaced part is not available, the estimated cost of similar new parts is used as an indication of what the cost of the existing part was when the item was acquired.

An item of PPE is de-recognised on disposal or when no future economic benefits are expected from use. Any profit or loss arising on the de-recognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds and the carrying amount of the asset and is recognized in Statement of Profit and Loss.

Subsequent costs

The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part is de-recognised. The cost of the day-to-day servicing the property, plant and equipment are recognised in the statement of profit and loss as incurred.

Disposal

An item of property, plant and equipment is de-recognised upon the disposal or when no future benefits are expected from its use or disposal. Gains and losses on disposal of an

item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognised net within other income / expenses in the statement of Profit and Loss.

Depreciation

The depreciable amount of an asset is determined after deducting its residual value. Where the residual value of an asset increases to an amount equal to or greater than the asset''s carrying amount, no depreciation charge is recognised till the asset''s residual value decreases below the asset''s carrying amount. Depreciation of an asset begins when it is available for use, i.e., when it is in the location and condition necessary for it to be capable of operating in the intended manner. Depreciation of an asset ceases at the earlier of the date that the asset is classified as held for sale in accordance with Ind AS 105 and the date that the asset is de-recognised.

The management has estimated the useful the Tangible Assets as mentioned below	life of
ASSET CLASS	Years
Factory Building	30
Other Building	10
Plant & Machinery	20
Plant & Machinery (Pipelines)	15
Office Equipment	5
Factory Equipment	10
Computer Equipment (Servers & Networks)	6
Computer Equipment (Others)	3
Other Equipment	10
Furniture & Fixtures	10
Vehicle Equipment	8

Impairments of non-financial assets The Company assesses at each balance sheet date whether there is any indication that an asset or cash generating unit (CGU) may be impaired. Indefinite life intangibles are subject to a review for impairment annually or more frequently if events or circumstances indicate that it is necessary. If any such indication exists, the Company estimates the recoverable amount of the asset. The recoverable amount is the higher of an asset''s or CGU''s fair value less costs of disposal or its value in use. Where 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 the 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 the fair value less costs of disposal, recent market transactions are considered.

An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount, Impairment losses are recognised in the statement of Profit and Loss.

If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, an impairment loss is reversed only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

2.3 Intangible Assets

Recognition and measurement Intangible assets are recognised when the asset is identifiable, is within the control of the Company, it is probable that the future economic benefits that are attributable to the asset will flow to the Company and cost of the asset can be reliably measured.

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Intangible assets acquired by the

Company that have finite useful lives are measured at cost less accumulated amortisation and any accumulated impairment losses. Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cash-generating unit level.

Expenditure on Research activities is recognised in the statement of Profit and Loss as incurred. Development expenditure is capitalised only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to complete development and to use or sell the asset.

Intangible assets which comprise of the development expenditure incurred on new product and expenditure incurred on acquisition of user licenses for computer software are recorded at their acquisition price.

Subsequent measurement Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates.

Amortisation

The useful lives of intangible sets are assessed as either finite of indefinite.

Intangible assets i. e., computer software is amortized on a straight-line basis over the period of expected future benefits commencing from the date the asset is available for its use.

The management has estimated the useful life of the Intangible Assets as mentioned below:

ASSET CLASS	Years
Software & Licenses	6
Trade Marks	4
Other Assets	4

Amortisation method, useful lives and residual values are reviewed at the end of each financial year and adjusted if appropriate.

Intangible assets are assessed for impairment whenever there is an indication that the intangible asset may be impaired.

Disposal

Gains or losses arising from de-recognition 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 de-recognized.

2.4 Financial Assets

A. Fair Value assessment

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, regardless of whether that price is directly observable or estimated using another valuation technique.

In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of asset and liability if market participants would take those into consideration. Fair value for measurement and / or disclosure purposes in these Financial Statements is determined in such basis except for transactions in the scope of Ind AS 2, 17 and 36. Normally at initial recognition, the transaction price is the best evidence of fair value..

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 those 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 financial assets and financial liabilities for which fair value is measured or disclosed in the Financial Statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole.

B. Subsequent Measurement

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

- Financial assets measured at amortized cost

- Financial assets at fair value through OCI

- Financial assets at fair value through profit or loss

C. Financial assets measured at amortized cost

Financial assets are measured at amortized cost if the financials 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. These financials assets are amortized using the effective interest rate (''EIR'') method, less impairment. 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 finance income in the Statement of Profit and Loss. The losses arising from impairment are recognized in the Statement of Profit and Loss.

D. Financial assets at fair value through OCI (''FVTOCI'')

Financial assets are measured at fair value through other comprehensive income if the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling 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. At initial recognition, an irrevocable election is made (on an instrument-by-instrument basis) to designate investments in equity instruments other than held for trading purpose at FVTOCI. Fair value changes are recognized in the other comprehensive income (''OCI''). Statement of Profit and Loss.

However, the Company recognizes interest income, impairment losses and reversals and foreign exchange gain or loss in the Statement of Profit and Loss. On derecognition of the financial asset other than equity instruments designated as FVTOCI, cumulative gain or loss previously recognised in OCI is reclassified to the

E. Financial assets at fair value through profit or loss (''FVTPL'')

Any financial asset that does not meet the criteria for classification as at amortized cost or as financial assets at fair value through other comprehensive income is classified as financial assets at fair value through profit or loss.

Further, financial assets at fair value through profit or loss also include financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Financial assets at fair value through profit or loss are fair valued at each reporting date with all the changes recognized in the Statement of Profit and Loss.

F. De-recognition

The Company de-recognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the financial asset, the Company recognizes its retained interest in the asset and an associated liability for amounts it may have to pay.

G. Impairment of Financial Assets

The Company assesses impairment based on expected credit loss (''ECL'') model on the following:

- Financial assets that are measured at amortised cost; and

- Financial assets measured at FVTOCI

ECL is measured through a loss allowance on a following basis:

- The 12 month expected credit losses (expected credit losses that result from those default events on the financial instruments that are possible within 12 months after the reporting date)

- Full life time expected credit losses (expected credit losses that result from all possible default events over the life of financial instruments)

2.5 Financial Liabilities

The Company''s financial liabilities include trade payable.

A. Initial recognition and measurement

All financial liabilities at initial recognition are classified as financial liabilities at amortized cost or financial liabilities at fair value through profit or loss, as appropriate. All financial liabilities classified at amortized cost are recognized initially at fair value net of directly attributable transaction costs.

Any difference between the proceeds (net of transaction costs) and the fair value at initial recognition is recognised in the Statement of Profit and Loss.

The management has estimated the useful life of the Intangible Assets as mentioned below:

B. Subsequent measurement

The subsequent measurement of financial liabilities depends upon the classification as described below:

a. Financial Liabilities classified at Amortised Cost Financial Liabilities that are not held for trading and are not designated as at FVTPL are measured at amortised cost at the end of subsequent accounting periods. Amortised 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. Interest expense that is not capitalized as part of costs of assets is included as Finance costs in the Statement of Profit and Loss.

b. Financial Liabilities classified at Fair value through Profit and Loss (FVTPL)

Financial liabilities classified as FVTPL includes financial liabilities held for trading and financial liabilities designated upon initial recognition as FVTPL. Financial

liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. Financial liabilities designated upon initial recognition at FVTPL only if the criteria in Ind AS 109 is satisfied.

Exports benefits are accounted for in the year of exports based on the eligibility and when there is certainty of receiving the same.

C. De-recognition

A financial liability is de-recognised when the obligation under the liability is discharged / cancelled / 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 a new liability. The difference in the respective carrying amounts is recognized in the Statement of Profit and Loss.

D. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

Other incomes, other than interest and dividend are recognized when the same are due to be received and right to receive such other income is established.

2.6 Share Capital and Share Premium

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction net of tax from the proceeds. Par value of the equity share is recorded as share capital and the amount received in excess of the par value is classified as share premium.

2.7 Dividend Distribution to equity shareholders

The Company recognizes a liability to make cash

distributions to equity shareholders when the distribution is authorized and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorized when it is approved by the shareholders. A corresponding amount is recognized directly in other equity along with any tax thereon.

2.8 Cash Flows and Cash and Cash Equivalents

Statement of cash flows is prepared in accordance with the indirect method prescribed in the relevant Ind AS. For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, cheques and drafts on hand, deposits held with Banks, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and book overdrafts. However, Book overdrafts are to be shown within borrowings in current liabilities in the balance sheet for the purpose of presentation.

2.9 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when there is a present legal or constructive obligation as a result of a past event and it is probable (i.e. more likely than not) that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Such provisions are determined based on management estimate of the amount required to settle the obligation at the balance sheet date. When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a standalone asset only when the reimbursement is virtually certain.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as finance costs.

Present obligations arising under onerous contracts are recognised and measured as provisions. An onerous contract is considered to exist when a contract under which the unavoidable costs of meeting the obligations exceed the economic benefits expected to be received from it.

Contingent liabilities are disclosed on the basis of judgment of management/independent experts. These are reviewed at each balance sheet date and are adjusted to reflect the current management estimate.

Contingent Assets are not recognized, however, disclosed in financial statement when inflow of economic benefits is probable.

2.10 Revenue Recognition and Other Income

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, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.

Revenue from sale of goods is recognized, when the control is transferred to the buyer, as per the terms of the contracts and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.

Interest income or expense is recognised using the effective interest rate method. The "effective interest rate" is the rate that exactly discounts estimated future cash receipts or payments through the expected life of the financial instrument to:

- the gross carrying amount of the financial asset; or

- the amortised cost of the financial liability.

2.11 Leases

At inception of a contract, the Company assesses whether

a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

- the contract involves the use of an identified asset - this may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified.

- the Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and

- the Company has the right to direct the use of the asset. The Company has this right when it has the decisionmaking rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how and for what purpose the asset is used is predetermined, the Company has the right to direct the use of the asset if either:

# the Company has the right to operate the asset; or

# the Company designed the asset in a way that predetermines how and for what purpose it will be used.

At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.

Company as a lessee

The Company recognises a right-of-use asset and a lease liability at the lease commencement date.

- the gross carrying amount of the financial asset; or

- the amortised cost of the financial liability.

2.11 Leases

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the

right to control the use of an identified asset, the Company assesses whether:

- the contract involves the use of an identified asset - this may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified.

- the Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and

- the Company has the right to direct the use of the asset. The Company has this right when it has the decisionmaking rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how and for what purpose the asset is used is predetermined, the Company has the right to direct the use of the asset if either:

# the Company has the right to operate the asset; or

# the Company designed the asset in a way that predetermines how and for what purpose it will be used.

At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.

Company as a lessee

The Company recognises a right-of-use asset and a lease liability at the lease commencement date.

- the gross carrying amount of the financial asset; or

- the amortised cost of the financial liability.

2.11 Leases

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

- the contract involves the use of an identified asset - this

- may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified.

- the Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and

- the Company has the right to direct the use of the asset. The Company has this right when it has the decisionmaking rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how and for what purpose the asset is used is predetermined, the Company has the right to direct the use of the asset if either:

# the Company has the right to operate the asset; or

# the Company designed the asset in a way that predetermines how and for what purpose it will be used.

At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.

Company as a lessee

The Company recognises a right-of-use asset and a lease liability at the lease commencement date.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets re determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company''s incremental borrowing rate. Generally, the Company uses its incremental borrowing rates as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

- fixed payments, including in-substance fixed payments.

- variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date.

- amounts expected to be payable under a residual value guarantee; and

- the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is change in future lease payments arising from a change in an index or rate, if there is change in the Company''s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in statement of Profit and Loss if the carrying amount of the right-of-use asset has been reduced to zero.

Leasehold land is amortised over the period of lease being 79 years remaining as on the date of purchase.

Short-term leases and leases of low-value assets The

Company has elected not to recognise right-of-use assets and lease liability for the short-term leases that have lease term of 12 months of less and leases of low-value assets. The Company recognises the lease payments associated with such leases as an expense on a straight-line basis over the lease term.

2.12 Income Taxes

Income tax expense represents the sum of tax currently payable and deferred tax. Tax is recognized in the Statement of Profit and Loss, except to the extent that it relates to items recognized directly in equity or in other comprehensive income.

Current Tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related to income taxes. Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities.

The tax rates and the tax laws used to compute the amoun are those that are enacted or substantively enacted, at the reporting date in the country where the Company operates and generates taxable income. Current tax assets and liabilities are offset only if there is a legally enforceable right to set it off the recognised amounts and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

Deferred Tax

Deferred tax is provided using the balance sheet method on temporary differences between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised 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,

- Taxable temporary differences arising on the initial recognition of goodwill.

- Temporary differences related to investments in subsidiaries, associates, and joint arrangements to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised 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 (including unabsorbed depreciation) can be utilised, except:

- When the deferred tax asset relating to the deductible temporary difference 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.

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 utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised 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 realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

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.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Minimum Alternate Tax (MAT)

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period.

2.13 Current versus Non-Current classification

The Company presents assets and liabilities in the Balance Sheet based on current/non-current classification.

a. An asset is current when it is:

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

• Held primarily for the purpose of trading,

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

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

All other assets are classified as non-current.

b. A liability is current when :

• It is expected to be settled in the 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.

All other liabilities are classified as non-current.

c. Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.

d. The operating cycle is the time between the acquisition of assets for processing and their realization in cash

d. and cash equivalents.

2.14 Employee benefits

(i) Short term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as shortterm employee benefits. Un-discounted value of benefits such as salaries, incentives, allowances and bonus are recognized in the period in which the employee renders the related service.

(ii) Long term benefits

Defined Contribution Plans

The Company contributes to the employee''s approved provident fund scheme. The Company''s contribution paid/ payable under the scheme is recognized as an expense in the statement of profit and loss during the period in which the employee renders the related services.

Defined Benefit Plans

Gratuity Liability is a defined benefit obligation and is provided on the basis of an actuarial valuation model made at the end of the Financial Year. The Gratuity Liability is funded by the Company by maintaining the funds with a separate Asset Management Company, i. e., LIC of India. Contributions to such fund is charged to Profit and Loss Account. Actuarial Valuation of the Gratuity is done at the end of the Financial Year and accounted for accordingly.

2.15 Trade Receivables

Trade Receivables are stated after writing off debts considered as bad. Adequate provision is made for debts considered as doubtful.

2.16 Inventories

(i) Raw Materials, Work in Progress, Finished Goods, Packing Materials, Stores, Spares and Consumables are carried at the lower of cost and net realisable value.

(ii) In determining the cost of Raw Materials, Packing Materials, Stores, Spares and Consumables, FIFO Method is used. Cost of Inventory comprises of all

(ii) costs of purchase, duties, taxes (other than those subsequently recoverable from tax authorities) and all other costs incurred in bringing the inventory to their present location and condition.

(iii) Cost of Finished Goods includes the cost of Raw Materials, Packing Materials, an appropriate share of fixed and variable production overheads, indirect taxes as applicable and other costs incurred in bringing the inventories to their present location and condition.

(iv) Cost of Stock in Trade procured for specific projects is assigned by specific identification of individual costs of each item.

2.17 Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset, that necessarily takes substantial period of time to

get ready for its intended use or sale, are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period in which they are incurred. Borrowing costs consist of interest, exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost and other costs that an entity incurs in connection with the borrowings of the funds.

2.18 Earnings per share

Basic EPS is calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements and stock split in equity shares issued during the year and excluding treasury shares. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares and stock split, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

Diluted EPS is adjustment to the figures used in the determination of basic EPS to consider:

- The after-income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

- The weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

2.19 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The Board of Directors of the Company have been identified as being the Chief Operating Decision Maker by the management of the Company.

2.20 Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currency of the Company at the exchange rates at the dates of the transactions.

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non-monitory assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Nonmonitory items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. Foreign currency differences are generally recognised in the Statement of Profit and Loss.

2.21 Government grants and subsidies

Grants / subsidies that compensate the Company for expenses incurred are recognised in the Statement of Profit and Loss as other operating income on a systematic basis in the periods in which such expenses are recognised.

Export Incentives

Export incentives under various schemes notified by the government are recognised when no significant uncertainties as to the amount of consideration that would

be derived and that the Company will comply with the conditions associated with the grant and ultimate collection exist.

2.22 Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under the Companies (Indian Accounting Standards) Rules as amended from time to time. There are no such recently issued standards or amendments to the existing standards for which the impact on the Financial Statements is required to be disclosed.

However, the Ministry of Corporate Affairs ("MCA") amended Schedule III of the Companies Act, 2013, through a notification dated March 24, 2021. The amendments revise Division I, II and III of Schedule III and are applicable from April 1, 2021. The Company has evaluated and given the effect of the amendments on its Financial Statements.