Accounting Policies of Jasch Gauging Technologies Ltd. Company

Mar 31, 2025

NOTE : 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

I. Corporate Information

Jasch Gauging Technologies Limited âJGTL or the Companyâ is a limited company incorporated in India with its registered office located at 502, Block C, NDM-II, NSP, Pitampura, Delhi - 110034 and Works at 43/2, Sultanpur, Bahalgarh Road Distt. Sonipat -131021, Haryana having CIN : L33111DL2021PLC381513. The Company is listed on the BSE Ltd. (BSE). The Company is a leading manufacturer of Electronic Thickness Gauges. The company has a wide network of operations in local as well foreign market.

II. Significant Accounting Policies

1) Statement of Compliance

These standalone financial statements have been prepared in accordance with the Indian Accounting Standards (referred to as the âInd ASâ) as prescribed under Section 133 of the Companies Act, 2013 (âthe Actâ) read with Companies (Indian Accounting Standards) Rules as amended from time to time and other relevant provisions of the Act.

2) Basis of Preparation

The standalone financial statements have been prepared on accrual and going concern basis. The accounting policies have been applied consistently to all the periods presented in the financial statements. All assets and liabilities have been classified as current or non-current as per the Companyâs normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

The standalone financial statements are presented in INR (Rs.), the functional currency for the Company. Items included in the standalone financial statements of the Company are recorded using the currency of the primary economic environment in which the Company operates (âthe functional currencyâ).

The standalone financial statements of the Company for the period ended 31^st March, 2025 were approved for issue in accordance with the resolution passed by Board of Directors on 20-05-2025.

3) Historical Cost Convention

The standalone financial statements have been prepared on a historical cost basis, except (1) current investments have been measured at fair value; (2) Assets held for sale have been measured at lower of carrying amount or fair value less cost to sell.

4) Current non-current classification

All assets and liabilities have been classified as current or non-current as per the Companyâs normal operating cycle (twelve months) and other criteria set out in the Schedule III to the Act.

5) Rounding of amounts

Unless otherwise stated all amounts disclosed in the standalone financial statements and notes have been rounded off to the nearest Rs. lakh as per the requirement of Schedule III.

6) Use of estimates and judgments

The estimates and judgments used in the preparation of the standalone financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the exiting circumstances.

These are also based on the facts and events, that existed as at reporting date, or that occurred after that date but provide additional evidence about conditions exiting as the reporting date. Differences between actual results and estimates are recognized in the period in which the result are known / materialized.

7) Property, plant and equipment

Freehold land is carried at cost. All other items of property, plant and equipment are stated at cost less depreciation and impairment, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the assetâs carrying amount or these are recognized as a separate asset, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of Profit and Loss during the reporting period in which they are incurred.

8) Depreciation / Amortization methods, estimated useful lives and residual value

Depreciation is calculated using the straight-line basis at the rates arrived at based on the useful lives prescribed in Schedule II of the Companies Act, 2013 which are as follows :

Asset Description	Life of the asset (in years)
Buildings
Factory	30
Non Factory	60
Plant and equipment
Process Machinery-Non Continuous	15
Others- Continuous Process Machinery	25
Furniture and Fixtures	10
Office Equipment	5

Servers and networks	6
Others- End use devices	3
Vehicles	8

The company follows the policy of charging depreciation on pro-rata bases on the assets acquired or disposed off during the year. The residual values are not more than 5% of the original cost of the asset. In case of pre-owned assets, the useful life is estimated on a case to case basis. Gain and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.

Capital work-in-progress

Depreciation is not recorded on Capital working-progress until construction / installation is completed and the assets is ready for its intended use.

9) Amortization of Preliminary Expenses

The company has written off its preliminary expense in five successive years from the beginning of the year in which company start its commercial activities and charged the same to the profit and loss account.

10) Investment Properties

Property that is held for long-term rental yields or for appreciation or both, and which is not occupied by the Company, is classified as Investment property, and is measured at its cost, including related transaction cost and where applicable borrowing costs less depreciation and impairment if any.

11) Intangible assets Goodwill / Computer Software

Computer software are stated at cost, less accumulated amortization and impairments, if any. The company amortizes computer software using the straight-line method over a period of 3 years.

Gains and losses on disposal as compared with carrying amount are included in the Statement of Profit and Loss.

12) Cash and Cash Equivalents

Cash flows are reported using the indirect method, whereby profit for the year is adjusted for the effects of transactions of a noncash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated. The Company considers all highly liquid financial assets that are readily convertible to known amounts of cash to be cash equivalents.

13) Inventories

a) Valuation of Inventories of raw-materials, packing-materials, consumables and stores is at cost and excludes taxes actually paid and on subsequently credit availed, includes incidental expense incurred in bringing the inventories to their present location and condition and is arrived at on FIFO basis.

b) Valuation of semi-finished goods / work-in-process is at material cost and includes cost of conversion wherever applicable.

c) Valuation of Finished Goods includes cost of conversion and other costs incurred in bringing the inventories to their present location and condition or market value / net realizable value, whichever is lower.

14) Investments in subsidiaries, joint ventures and associates

Cost of investments in subsidiaries, joint ventures and associates are measured at cost less impairment loss if any.

15) Investments and other financial assets

(i) Classification

The company classifies its financial assets in the following categories:

(a) Those which are to be measured at fair value (either through other comprehensive income, or through the statement of Profit and Loss),

(b) Those which are to be measured at amortized cost.

(c) Those, the classification of which, depends on the Companyâs business model for managing the financial assets and the contractual terms of the cash flows.

(ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value. Subsequent transaction costs or gains of financial assets are booked in the Statement of Profit and Loss.

(iii) Equity Instruments:

The Company measures its equity investment (other than in subsidiaries, joint ventures and associates) at fair value by routing the gain or loss through Statement of Profit and Loss. However, where the Companyâs management makes an irrevocable choice on initial recognition to present fair value gains and losses on specific equity investments in other comprehensive income (currently no such choice made), there is no subsequent reclassification, on sale or otherwise, of fair value gains and losses to the Statement of Profit and Loss.

(iv) Impairment of financial assets

The Company measures the expected credit loss associated with its assets based on historical trend, industry practices and the business environment in which the entity operates or any other appropriate basis. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

(v) Income recognition

Interest Income

Interest income from debt instruments is recognized using the effective interest rate method.

Dividends

Dividends are recognized in the Statement of Profit and Loss only when the right to receive payment is established.

16) Non-current assets held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction (or when a sale is considered highly probable) rather than through continued use. These are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and contractual rights under insurance contracts, which are specifically exempt from this requirement.

Non-current assets are not depreciated or amortized while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal Company classified as held for sale continue to be recognized.

17) Segment Reporting

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

18) Borrowing Costs

Interest and other borrowing costs attributable to qualifying assets are capitalized. Other interest and borrowing costs are charged to Statement of Profit and Loss.

19) Micro and Small Enterprises

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management.

20) Provisions and Contingent Liabilities

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, the amount of which can be reliably estimated. Provisions are not recognized for future operating losses.

Provisions are measured at the present value of managementâs best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest expense.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will depend on the occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made.

21) Revenue recognition

Revenue from sale of products is recognized when control of the products has transferred, being when the products are delivered to the customer. Delivery occurs when the products have been shipped or delivered to the specific location as the case may be, the risks of loss has been transferred, and either the customer has accepted the products in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied. Sale of products includes related ancillary services, if any. In case of export customers, sales generally take place when goods are shipped on board based on bill of lading.

(i) Revenue From services

Revenue from services is recognized in the accounting period in which the services are rendered.

(ii) Other operating / non-operating revenue

Export incentives under various schemes of Government and other Government incentives are accounted for in the year of export or received of the incentive.

Amounts disclosed as revenue are exclude GST and net of returns, trade allowances, rebates, discounts, loyalty discount and amounts collected on behalf of third parties.

22) Leases Operating Lease

Lease arrangements where the risk and rewards incident to ownership of an asset substantially vest with the lessor are recognized as operating lease. Lease rent under operating leases are charged to the profit and loss account on a straight-line basis over the lease term.

Finance Lease

Leases under which the company assumes substantially all the risks and rewards of ownership are classified as finance leases. The lower of fair value of asset and present value of minimum lease rentals is capitalized as fixed assets with corresponding amount shown as lease liability. The principal component in the lease rentals is adjusted against the lease liability and interest component is charged to profit & loss account.

23) Employee Benefits

(i) Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12

months after the end of the period in which the employees render the related services, are recognized up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.

(ii) Contribution to Provident Fund is made in accordance with the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and is recognized as an expense and debited to Statement of Profit and Loss on accrual basis.

(iii) Bonus and leave encashment payment are accounted for on accrual basis and charged to Statement of Profit and Loss.

(iv) The proposed Social Security Code, Code on Wages, 2019 when promulgated, would subsume labour laws including

Employeeâs Provident Funds and Miscellaneous Provisions Act, Wages and Bonus and amend the definition of wages on which the organization and its employees are to contribute towards Provident Fund. The Company believes that there will be no significant impact on tis contributions to Provident Fund due to the proposed amendments.

24) Foreign currency translation

(i) Functional and presentation currency

The standalone financial statements are presented in Indian rupee (INR), which is Companyâs functional and presentation currency.

(ii) Transactions and balances

Transactions in foreign currencies are recognized in INR at the prevailing exchange rates on transaction dates. Realized gains and losses on settlement of foreign currency transactions are recognized in the statement of Profit and Loss. Monetary foreign currency assets and liabilities at the year-end are translated at the year-end exchange rate and the resultant exchange differences are recognized in the Statement of Profit and Loss.

25) Income Tax

The income tax expense or credit for the period is the tax payable on the current periodâs taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Deferred income tax is provided for in full, using the liability method on temporary differences arising between the tax basis of assets and liabilities and their carrying amount in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax assets is realized or the deferred income tax liability is settled.

Deferred tax assets are recognized for all deductible temporary differences and unused tax losses, only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the Company has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Current and deferred tax is recognized in the Statement of Profit and Loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

Minimum Alternate Tax credit is recognized as deferred tax 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.

26) Earnings Per Share Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the Company

- by the weighted average number of equity share outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

- the after income tax effect of interest and other financing cost associated with dilutive potential equity share: and

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

27) Government Grants

Grants from the government are recognized at their fair value where there is reasonable assurance that the grant will be received and the company with comply with all attached conditions.

Government grants related to purchase of property, plant and equipment are included in non-current liabilities as deferred income and are credited to Statement of Profit and Loss on a straight-line basis over the expected lives of related assets and presented within other income.

28) Manufacturing and Operating Expenses

The company separately classifies manufacturing and operating expenses which are directly link to manufacturing and service activities of the company.

29) Critical estimates and judgements

The preparation of standalone financial statements requires the use of estimates and judgements which by definition will seldom equal the actual results. Management also needs to exercise judgement in applying the Groupâs accounting policies.

This note provides an overview of the areas that involve a higher degree of judgement or complexity, and items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the standalone financial statements.

30) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. Differences between actual amounts and estimates are recognized in the period in which they materialize.

Mar 31, 2024

II. Significant Accounting Policies

1) Statement of Compliance

2) Basis of Preparation

The standalone financial statements have been prepared on accrual and going concern basis. The accounting policies have been applied consistently to all the periods presented in the financial statements. All assets and liabilities have been classified as current or noncurrent as per the Companyâs normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

The standalone financial statements of the Company for the period ended 31^st March 2024 were approved for issue in accordance with the resolution passed by Board of Directors on 30-05-2024.

3) Historical Cost Convention

The standalone financial statements have been prepared on a historical cost basis, except (1) current investments have been measured atfairvalue; (2) Assets held for sale have been measured at lower of carryingamount orfair value less cost to sell.

4) Current non-current classification

All assets and liabilities have been classified as current or non-current as per the Companyâs normal operating cycle (twelve months) and other criteria set out in the Schedule III to the Act.

5) Rounding of amounts

Unless otherwise stated all amounts disclosed in the standalone financial statements and notes have been rounded off to the nearest Rs. lakh as per the requirement of Schedule III.

6) Use of estimates andjudgments

The estimates andjudgments used in the preparation of the standalone financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the exiting circumstances.

7) Property, plant and equipment

8) Depreciation / Amortization methods, estimated useful lives and residual value

Depreciation is calculated using the straight-line basis at the rates arrived at based on the useful lives prescribed in Schedule II of the Companies Act, 2013 whichare as follows :

Capital work-in-progress

Depreciation is not recorded on Capital working-progress until construction / installation is completed and the assets is ready for its intended use.

9) Amortization of Preliminary Expenses

The company has written off its preliminary expense in five successive years from the beginningof theyear in which company start its commercial activities and charged the same to the profit and loss account.

10) Investment Properties

11) Intangible assets Goodwill/ Computer Software

Computer software are stated at cost, less accumulated amortization and impairments, if any. The company amortizes computer software usingthe straight-line method over a period of 3 years.

Gains and losses on disposal as compared with carrying amount are included in the Statement of Profit and Loss.

12) Cash and Cash Equivalents

Cash flows are reported using the indirect method, whereby profit for the year is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated. The Company considers all highly liquid financial assets that are readily convertible to known amounts of cash to be cash equivalents.

13) Inventories

b) Valuation of semi-finished goods / work-in-process is at material cost and includes cost of conversion wherever applicable except release paper where the cost of which reduced by certain % directly from the cost price as and when new reel of release paper is issued to production.

14) Investments in subsidiaries, joint ventures and associates

Cost of investments in subsidiaries, joint ventures and associates are measured at cost less impairment loss if any.

15) Investments and other financial assets

(i) Classification

The company classifies its financial assets in the following categories:

(a) Those which are to be measured at fair value (either through other comprehensive income, or through the statement of Profit and Loss),

(b) Those which are to be measured at amortized cost.

(c) Those, the classification of which, depends on the Companyâs business model for managing the financial assets and the contractual terms of the cash flows.

(ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value. Subsequent transaction costs or gains of financial assets are booked in the Statement of Profit and Loss.

(iii) Equity Instruments:

(iv) Impairment of financial assets

(v) Income recognition Interest Income

Interest income from debt instruments is recognized usingthe effective interest rate method.

Dividends

Dividends are recognized in the Statement of Profit and Loss only when the right to receive payment is established.

16) Non-current assets held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction (or when a sale is considered highly probable) rather than through continued use. These are measured at the lower of their carryingamount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and contractual rights under insurance contracts, which are specifically exempt from this requirement.

Non-current assets are not depreciated or amortized while they are classified as held for sale. Interest and other expenses attributable to , the liabilities of a disposal Company classified as held for sale continue to be recognized. ''

17) Segment Reporting

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

18) Borrowing Costs

Interest and other borrowing costs attributable to qualifying assets are capitalized. Other interest and borrowing costs are charged to Statement of Profit and Loss.

19) Micro and Small Enterprises

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management.

Mar 31, 2023

I. Corporate Information

Jasch Gauging Technologies Limited (JGTL or the Company) is a limited company incorporated in India with its registered office located at 502, Block C, NDM-II, NSP, Pitampura, Delhi - 110034 having CIN U33111DL2021PLC381513

II. Significant Accounting Policies

1) Statement of Compliance

These standalone financial statements have been prepared in accordance with the Indian Accounting Standards (referred to as the ''Ind ASO as prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with Companies (Indian Accounting Standards) Rules as amended from time to time and other relevant provisions of the Act

2) Basis of Preparation

The standalone financial statements have been prepared on accrual and going concern basis The accounting policies have been applied consistently to all the periods presented in the financial statements All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other cnteria as set out in the Division II of Schedule III to the Companies Act, 2013 Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities

The standalone financial statements are presented in INR (Rs), the functional currency for the Company Items included in the standalone financial statements of the Company are recorded using the currency of the primary economic environment in which the Company operates (The functional currency'')

The standalone financial statements of the Company for the period ended 31^st March, 2023 were approved for issue in accordance with the resolution passed by Board of Directors on 12-05-2023

J 3) Historical Cost Convention

The standalone financial statements have been prepared on a historical cost basis, except (1) current investments have been measured at fair value, (2) Assets held for sale have been measured at lower of carrying amount or fair value less cost to sell

4) Current non-current classification

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle (twelve months) and other criteria set out in the Schedule III to the Act

5) Rounding of amounts

Unless otherwise stated all amounts disclosed in the standalone financial statements and notes have been rounded off to the nearest Rs lakh as per the requirement of Schedule III

6) Use of estimates and judgments

The estimates and judgments used in the preparation of the standalone financial statements are continuously evaluated by the Company and are based on histonca! expenence and vanous other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the exiting circumstances

These are also based on the facts and events, that existed as at reporting date, or that occurred after that date but provide additional evidence about conditions exiting as the reporting date Differences between actual results and estimates are recognized in the period in which the result are known / materialized

7) Property, plant and equipment

Freehold land is carried at cost All other items of property, plant and equipment are stated at cost less depreciation and impairment, v if any Histoncal cost includes expenditure that is directly attributable to the acquisition of the items

Subsequent costs are included in the asset''s carrying amount or these are recognized as a separate asset, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably All other repairs and maintenance are charged to the statement of Profit and Loss during the reporting period in which they are incurred

8) Depreciation / Amortization methods, estimated useful lives and residual value

Depreciation is calculated using the straight-line basis at the rates arrived at based on the useful lives prescribed in Schedule n of the Companies Act, 2013 which are as follows

Asset Descnption	Life of the asset (in years)
Buildinqs
Factory	30
Non Factory	60
Plant and equipment
Process Machinery	15
Others	25
Furniture and Fixtures	10
Office Equipment	5
Servers and networks	6
Others	3
Vehicles	8

The company follows the policy of charging depreciation on pro-rata bases on the assets acquired or disposed off dunng the year The residual values are not more than 5% of the original cost of the asset In case of pre-owned assets, the useful life is estimated on a case to case basis Gain and losses on disposals are determined by comparing proceeds with carrying amount These are included in the Statement of Profit and Loss

Capital work-in-progress

Depreciation is not recorded on Capital working-progress until construction / installation rs completed and the assets is ready for its intended use

9) Amortization of Preliminary Expenses

10) Investment Properties

11) Intangible assets

Goodwill / Computer Software

Computer software are stated at cost, less accumulated amortization and impairments, if any The company amortizes computer software using the straight-line method over a period of 3 years.

Gains and losses on disposal as compared with carrying amount are included in the Statement of Profit and Loss

12) Cash and Cash Equivalents

Cash flows are reported using the indirect method, whereby profit for the year is adjusted for the effects of transactions of a noncash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows The cash flows from operating, investing and financing activities of the Company are segregated The Company considers all highly liquid financial assets that are readily convertible to known amounts of cash to be cash equivalents

~ 13) Inventories

ji a) Valuation of Inventories of raw-matenals, packing-materials, consumables and stores is at cost and excludes taxes actually

paid and on subsequently credit availed, includes incidental expense incurred in bringing the inventories to their present location and condition and is arrived at on FIFO basis except in case of release paper, where only cost price of available reel of release paper is considered

14) Investments in subsidiaries, joint ventures and associates

Cost of investments m subsidiaries, joint ventures and associates are measured at cost less impairment loss if any

15) Investments and other financial assets 0) Classification

The company classifies its financial assets in the following categories

(a) Those which are to be measured at fair value (either through other comprehensive income, or through the statement of Profit and Loss),

(b) Those which are to be measured at amortized cost

(c) Those, the classification of which, depends on the Company''s business model for managing the financial assets and the contractual terms of the cash flows

^ (ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value Subsequent transaction costs or gains of financial assets are booked in the Statement of Profit and Loss

(iii) Equity Instruments:

The Company measures its equity investment (other than in subsidianes, joint ventures and associates) at fair value by routing the gain or loss through Statement of Profit and Loss However, where the Company''s management makes an irrevocable choice on initial recognition to present fair value gains and losses on specific equity investments in other comprehensive income (currently no such choice made), there is no subsequent reclassification, on sale or otherwise, of fair value gains and losses to the Statement of Profit and Loss

(iv) Impairment of financial assets

The Company measures the expected credit loss associated with its assets based on histoncal trend, industry practices and the business environment in which the entity operates or any other appropriate basis The impairmept-methodQlogy applied depends on whether there has been a significant increase in credit risk

(v) Income recognition { \/ jp''/T, * \q\

Interest Income Y â'' J ffi \

Interest income from debt instruments is recognized using the effective interest rate method l ^ \ / Co I

Dividends

Dividends are recognized in the Statement of Profit and Loss only when the right to receive payment is esraibtishejfQ''^V/

16) Non-current assets held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction (or when a sale is considered highly probable) rather than through continued use These are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and contractual rights under insurance contracts, which are specifically exempt from this requirement

Non-current assets are not depreciated or amortized while they are classified as held for sale Interest and other expenses attributable to the liabilities of a disposal Company classified as held for sale continue to be recognized

17) Segment Reporting

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

18) Borrowing Costs

Interest and other borrowing costs attributable to qualifying assets are capitalized Other interest and borrowing costs are charged to Statement of Profit and Loss

19) Micro and Small Enterprises

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management

20) Provisions and Contingent Liabilities

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, the amount of which can be reliably estimated Provisions are not recognized for future operating losses

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the nsks specific to the liability The increase in the provision due to the passage of time is recognized as interest expense

^ 21) Revenue recognition

Revenue from sale of products is recognized when control of the products has transferred, being when the products are delivered to the customer Delivery occurs when the products have been shipped or delivered to the specific location as the case may be, the risks of loss has been transferred, and either the customer has accepted the products in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied Sale of products includes related ancillary services, if any In case of export customers, sales generally take place when goods are shipped on board based on bill of lading

(i) Revenue From services

Revenue from services is recognized in the accounting period in which the services are rendered

(ii) Other operabng / non-operating revenue

Export incentives under various schemes of Government and other Government incentives are accounted for in the year of export or received of the incentive

Amounts disclosed as revenue are exclude GST and net of returns, trade allowances, rebates, discounts, loyalty discount and amounts collected on behalf of third parties

22) Leases

Operabng Lease

Lease arrangements where the risk and rewards incident to ownership of an asset substanhally vest with the lessor are recognized as operabng lease Lease rent under operabng leases are charged to the profit and loss account on a straights'' line basis over the lease term

Finance Lease

Leases under which the company assumes substantially all the nsks and rewards of ownership are classified as finance leases The lower of fair value of asset and present value of minimum lease rentals is capitalized as fixed assets with corresponding amount shown as lease liability The pnncipal component in the lease rentals is adjusted against the lease liability and interest component is charged to profit & loss account

23) Employee Benefits

(i) Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related services, are recognized up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled

(âi) Bonus and leave encashment payment are accounted for on accrual basis and charged to Statement of Profit and Loss

(iv) The proposed Social Secunty Code, Code on Wages, 2019 when promulgated, would subsume labour laws including

Employee''s Provident Funds and Miscellaneous Provisions Act, Wages and Bonus and amend the definiperTpfAvaqes.on which the orgamzabon and its employees are to contribute towards Provident Fund The Company hpji^^T^f-r^Wiii be no significant impact on tis contribubons to Provident Fund due to the proposed amendments /(f/ Nfo\

24) Foreign currency translation fn |

0) Functional and presentation currency \ ! Wv Jcoj

The standalone financial statements are presented in Indian rupee (INR), which is Company''s funcbonalfghd presentabonC''/ currency.

(n) Transactions and balances

Transactions in foreign currencies are recognized in INR at the prevailing exchange rates on transaction dates Realized gains and losses on settlement of foreign currency transactions are recognized in the statement of Profit and Loss

Monetary foreign currency assets and liabilities at the year-end are translated at the year-end exchange rate and the resultant exchange differences are recognized in the Statement of Profit and Loss

25) Income Tax

The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses

Deferred income tax is provided for in full, using the liability method on temporary differences arising between the tax basis of assets and liabilities and their carrying amount in the financial statements Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax assets is realized or the deferred income tax liability is settled

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authonty Current tax assets and tax liabilities are offset where the Company has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously

Current and deferred tax is recognized in the Statement of Profit and Loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity In this case, the tax is also recognized in other comprehensive income or directly in equity, respecbvely

Minimum Alternate Tax credit is recognized as deferred tax 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

^y 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

26) Earnings Per Share Basic earnings per share

Basic earnings per share is calculated by dividing

- the profit attributable to owners of the Company

- by the weighted average number of equity share outstanding dunng the financial year, adjusted for bonus elements in equity shares issued dunng the year and excluding treasury shares

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account

- the after income tax effect of interest and other financing cost associated with dilutive potential equity share and

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

27) Government Grants

Grants from the government are recognized at their fair value where there is reasonable assurance that the grant will be received and the company with comply with all attached conditions

Government grants related to purchase of property, plant and equipment are included in non-current liabilities as deferred income ^ and are credited to Statement of Profit and Loss on a straight-line basis over the expected lives of related assets and presented

jl within other income

28) Manufacturing and Operating Expenses

The company separately classifies manufactunng and operating expenses which are directly link to manufactunng and service activities of the company

29) Critical estimates and judgements

The preparation of standalone financial statements requires the use of estimates and judgements which by definition will seldom equal the actual results Management also needs to exercise judgement in applying the Group''s accounting policies

This note provides an overview of the areas that involve a higher degree of judgement or complexity, and items which are more likely to be matenally adjusted due to estimates and assumptions turning out to be different than originally assessed Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the standalone financial statements

30) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumpbons that affect the reported amounts of assets and liabilities and disclosure of contingent li^ltfle^ja^SJWate of the financial statements and the results of operations during the reporting period end Although these esttmat^kâ¬tj>feseq(qmhi, management''s best knowledge of current events and actions, actual results could differ from these estimates /L^Jfertmces bemdqnA actual amounts and estimates are recognized in the period in which they materialize /O / \o\

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