Accounting Policies of Supershakti Metaliks Ltd. Company

Mar 31, 2025

1. CORPORATE AND GENERAL INFORMATION

Supershakti Metaliks limited (the Company), was incorporated in India in the year 2012. The Company is domiciled in India, and has its registered office at 39,
Shakespeare Sarani, Premlata Building, 2nd Floor, Kolkata 700 017.

The Company is a Public Limited Company incorporated as per the provisions of The Companies Act'' 1956 applicable in India.

The Company is engaged in business of Iron and steel manufacturing and allied activities. The Company is having its integrated steel plant at Durgapur, West Bengal, The
shares of the Company are listed on the Bombay Stock Exchange, SME Platform.

These financial statements have been approved by the Board of Directors of the Company in their meeting held on 26th May , 2025.

2. BASIS OF ACCOUNTING

2.1 Statement of Compliancy

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (lnd AS) notified under the Companies (Indian Accounting
Standards) Rules, 2015 as amended from time to time, read with Section 133 of the Companies Act,2013 (“the Act") and presentation requirements of Division II of
Schedule III of the Act and other relevant provisions of the Act as applicable The Company has uniformly applied the Accounting Policy during the period presented.

2.2 B«ltoTPtcp3rgtlQn

The financial statements are prepared on a historical cost hasis except for the following assets and liabilities which have been measured at fair value:

• certain financial assets and liabilities which are classified as fair value through Statement of profit and loss or fair value through other comprehensive income;

¦ defined benefit plans and plan assets.

2.3 tuftfliqui mi PWBCTttticn Ctrrwa

The Financial Statements have heen presented in Indian National Rupees (INR), which is the Company''s functional currency.

2.4 Hit of Estimates and Account he Judgements

The preparation of financial statements requires management to make judgements, estimates and assumptions in the application of accounting policies that affect the
reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Continuous evaluation is done on the estimation and
judgements based on historical experience and other factors, including expectations of future events that are believed to be reasonable, Any revision to such estimates
is recognised in the period in which the same is determined.

2.5 Current and non-current classification

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

¦ Expected to be realised or intended to be sold or consumed in normal operating cycle or

¦ Held primarily for the purpose of trading or

¦ 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.

All other assets are classified as non-current
A liability is current when:

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

• It is held primarily for the purpose of trading or

• 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.

The Company classifies all other liabilities as non-current.

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

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

2.6 Recent Pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued
from time to time. During the year ended 31st March 2025, MCA has notified lnd AS 117 - Insurance Contracts and amendments to lnd As 116- Leases, relating to sale
and lease back transactions, applicable from 1st April 2024. The Company has assessed that there is no significant impact on its financial statements. On 9th May 2025,
MCA notifies the amendments to lnd AS 21 - Effects of Changes in Foreign Exchange Rates. These amendments aim to provide clearer guidance on assessing currency
exchangeability and estimating exchange rates when currencies are not readily exchangeable. The amendments are effective for annual periods beginning on or after
1st April 2025 The Company is currently assessing the probable impact of these amendments on its financial statements.

3. MATERIAL ACCOUNTING POLICIES

A summary of the material accounting policies applied in the preparation of the financial statements are as given below These accounting policies have been applied
consistently to all the periods presented in the financial statements.

3.1 Property, Plant and Equipment

3.1.1 R«ormltion and
Tangible Assets

Property, plant and equipment held for use in the production or/and supply of goods or services, or for administrative purposes, are stated in the balance sheet at cost,
less any subsequent accumulated depreciation and impairment losses. The initial cost at cash price equivalence of property, plant and equipment acquired comprises
its purchase price, including import duties and non-refurdable purchase taxes, any directly attributable costs of bringing the assets to its working condition and loLdliuii
and present value of any obligatory decommissioning costs for its intended use, if any.

In case of self constructed assets, cost includes the costs of all materials used in construction, direct labour, allocation of overheads, directly attributable borrowing
costs including trial run expenses (net of revenue)

Any material Spares having useful life of more than one year are capitalised under the respective heads as and when available for use
Profit or loss arising on the disposal of property, plant and equipment is recognised in the Statement of Profit and Loss.

3.1.2 Subsequent Cost

Subsequent expenditure is recognised as an increase in the carrying amount of the asset or recognrsed as a separate asset, as appropriate, only when it is probable that
future economic benefits derived from the cost incurred will flow to the Company and the cost of the item can be measured reliably. The carrying amount of replaced
item(s) is derecognised.

Any material repairs of property, plant and equipment are recognised in the carrying amount of the item if it is probable that the future economic benefits of the costs

incurred wilt flow ro the Companv The carrying amnunt of the replaced itemls> is Ht»rpr»gnicpH _ _

3.1.3 Capital Work-In-Progress

Capital work-in-progress is stated at cost which includes expenses incurred during construction period, interest on amount harrowed for acquisition of qualifying assets
and other expenses incurred in connection with project implementation in so far as such expenses relate to the period prior to the commencement of commercial
production.

3.1.4 Deoiedatlofi and Amortlutlon

Depreciation on tangible assets is provided on straight line method, considering residual value of 5% of the cost of the asset, over the useful lives of the assets, as
specified in Schedule II of the Companies Act, 2013 except in case of Plant and Machinery and components thereof, where useful life is determined by technical experts.
The useful life assumed hy the technical experts Is as under:

3.1,5 Derecognition

The carrying amount of an item of Property Plant and Equipment is derecognised on disposal or when no future economic henefits are expected from its use or disposal,
The gain or loss arising from the derecognition of an item of PPE is measured as the difference between the net disposal proceeds and the carrying amount of the item
and is recognised in the Statement of Profit and Loss when the item is derecognised.

3.2 I a«ets

3-2.1 Recognition and measurement

Intangible assets are stated at cost less accumulated amortization. Cost includes directly attributable expenditure for making the assets for its intended use.

3.2.2 Subsequent Cost

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is
recognised in the 5ta tement of Profit and Loss.

3.3 Impairment of Non-finance J Assets

The Company reviews the carrying amount of its assets an each Balance Sheet date for the purpose af ascertaining impairment indicators if any, by considering assets
of entire Plant as Cash Generating Unit (CGU). If any such indication exists, the assets'' recoverable amount is estimated, as higher of Che Net Selling Price and the Value
in Use. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable
amount, so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the
asset (or cash generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the Statement of Profit and Loss.

3.4 8a*rowlng costs

Borrowing Costs consists of interest and other costs that an entity incurs in connection with the borrowings of funds. Borrowing costs also includes exchange difference
to the extent regarded as an adjustment to the borrowing costs. Borrowing costs directly attributable to the acquisition or construction of a qualifying asset are
capitalized as a part of the cost of that asset that necessarily takes a substantial period of time to complete and prepare the asset for its intended use or sale, The
Company considers a period of twelve months or mare as a substantial period of time. Transaction costs in respect of long term borrowing are amortized over the
tenure of respective loans using Effective Interest Rate |E R] method. All other borrowing casts are recognized in the statement of profit and lass in the period in which
they are incurred.

If any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity
borrows generally when calculating the capitalisation rate on general borrowings.

3.5 Inventories

Inventories of stores and spare parts are valued at or below cost after providing for cost of obsolescence and other anticipated losses wherever considered necessary.

Cost of inventory comprises all costs of purchase, nan-refundable duties and taxes, cost of conversion including an appropriate share of fixed and variable production
overheads and all other costs incurred in bringing the inventory to their present location and condition.

Inventories of items other than those stated above are valued at cost or net realizable value whichever is lower.

Cost in respect of:

a] Raw Materials, Consumables, Stores & Spares and Traded Goods are computed under weighted average basis,

b] Wnrk-in-Progress and Finished Goods are computed under weighted average basis.

c] By- Products are valued at net realisable value.

Net Realizable Value is the estimated sellingprice in the ordinary course less the estimated cost of completion and the estimated costs necessary to make the sale.

Materials and other supplies held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are
expected to be sold at or above cost,

The Company considers factors like estimated shelf life, ageing of inventory etc in determining the provision for slow moving, obsolete and other non-saleahle inventory
and adjusts the inventory provisions to reflect the recoverable value of inventory.

3.6 Government 6rants

Government grants are recognised when there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be
received.

Government grants are recognised in Statement of Profit and Loss on a systematic basis over the periods in which the Company recognises as expenses the related costs
for which the grants are intended to compensate. Where the Grant relates to an asset value, it is recognised as deferred income, and amortised over the expected useful
life of the asset. Other grants are recognised in the statement of Profit a Loss concurrent to the expenses to which such grants relate/ are intended to cover
Where the Company receives nan-monetary grants, the asset and the grant are recorded gross at fair amounts and released to the income statement over the expected
useful life and pattern of consumption of the benefit of the underlying asset, "¦ -*«*.

/ n. H j> jv

3.7 Foreign Cut renew Trfngieilqni

Foreign Currency Transactions are translated into the functional currency using the spot rates of exchanges at the dates of the transactions. Monetary assets and
liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchanges at the reporting date.

Foreign exchange gains and lasses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities are generally recognised
in profit or loss in the year in which they arise except for exchange differences on foreign currency borrowings relating to assets under construction for future
productive use, which are included in the cast of those qualifying assets when they are regarded as an adjustment to interest costs on those foreign currency
borrowings, the balance is presented in the Statement of Profit and Loss within finance costs.

Non monetary items are not retranslated at period end and are measured at historical cost (translated using the exchange rate at the transaction date],

3.8 EmplovecBenefles
Short Term Benefits

Short term employee benefit obligations are measured an an undiscaunted taasis and are expensed as the related services are provided. Liabilities for wages and
salaries, including nan-monetary benefits that are expected to be settled wholly within twelve months after the end of the period in which the employees render the
related service are recognized in respect of employees'' services up to the end of the reporting period,

Other Lang Term Employee Benefits

The liabilities for leave encashment that are not expected to be settled wholly within twelve months are measured as the present value of the expected future payments
to be marie in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using
the government securities (G-Sec) at the end of the reporting period that have terms approximating to the terms of related obligation, Remeasurement as the result of
experience adjustment and changes in actuarial assumptions are recognized in statement of profit and loss,

Post Employment Benefits

The Company operates the following post employment schemes:

— Defined Benefit Plans

The liability or asset recognized in the Balance Sheet in respect of defined benefit plans is the present value of the defined benefit obligation at the end of the reporting
period less the fair value of plan assets. The Company''s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount
of future benefit that employees have earned in the current and prior periods.

The defined henefit obligation is calculated annually by Actuaries using the projected unit credit method.

The liability recognized for defined benefit plans is the present value of the defined henefit obligation at the reporting date less the fair value of plan assets, together
with adjustments for unrecognized actuarial gains or losses and past service costs. The net interest cost is calculated by applying the discount rate to the net balance of
the defined benefit obligation and the fair value of plan assets. The benefits are discounted using the government securities (G-Sec) at the end of the reporting period
that have terms approximating to the terms of related obligation.

Remeasurement of the net defined benefit obligation, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the
asset ceiling, are recognized in other comprehensive income. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings
and will not be reclassified to the statement of profit and loss.

— Defined Contribution Plan

Defined contribution plans such as provident fund etc. are charged to the statement of profit and loss as and when incurred. Contribution to a defined contribution plan
is made in accordance with the company''s policy and is recognised in the Statement of profit and lass.

3.9 Leases

The Company assesses whether a contract is or contains a lease, at inception of a contract. 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:

1 the contract invnlves the use of an identified asset

2. the Company has substantially all of the economic benefits from use of the asset through the period of the lease and

3. the Company has the right to direct the use of the asset.

Company as a lessee

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

At the date of commencement of the lease, the Company recognizes a right-of-use asset ("ROU") and a corresponding lease liability for all lease arrangements in which
it is a lessee, except for.leases with a term of twelve months or less (short-term leases), variable lease and low value leases. For these short-term, variahle lease and low
value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

RJjthtjof-tnf assets

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and
impairment losses, if any Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of
the underlying asset.

If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated
using the estimated useful life of the asset, The right-of-use assets are also subject to impairment Refer to the accounting policies in Note 3.3 Impairment of non¬
financial assets.

Extension and termination options are included in many of the leases. In determining the lease term the management considers all facts and circumstances thatcreate
an economic incentive to exercise an extension option, or not exercise a termination option.

Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

Lease hold Land for €0 years

Lease Liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term.
Lease payments included in the measurement of the lease liability comprise

•Fixed lease payments (including in-substance fixed payments) payable during the lease term and under reasonably certain extension options, less any lease incentives;
¦Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;

¦The amount expected to be payable by the lessee under residual value guarantees;

•The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and

•Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of
domicile of these leases.

After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the
carrying amount of lease liabilities is re-measured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments
resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

1.< ¹v Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an

A* y, \exiension or a termination option.

/ \o\

\ ‘^Lws* liability and ROU assets have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows, lease liabilities
L y J .jjjale been classified as current and non current under the head financial liabilities. The Company has used a single discount rate to a portfolio of leases with similar

Shaft-term {hmi and IgMgg of low-value iKjti

The Company applies the short-term lease recognition exemption to its short-term leases of Property, Plant & Equipment (i.e. those leases that have a lease term of 12
months or less from the commencement date and do not contain a purchase option). Lease payments on short-term leases and leases of low-value assets are
recognised as expense on a straight-line basis over the lease term-

On transition to INO AS dated April 1, 2020, the adoption of new standard resulted in recognition of Right-of-Use asset (ROU) of * 137.57 lakh, being leasehold land
recognised as ROU Assets transferred from property, plant 8t equipment.

Qn application of Jnd AS 11G, the nature of expenses has changed from [ease rent in previous periods to depreciation cost far the right-ta-use asset, and finance cost for
interest accrued on lease liability.

Others

The following is the summary of practical expedients elected on initial application:

(a) Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date.

(h) Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on the date of initial application, variable
lease and low value asset.

(c) Excluded the initial direct casts from the measurement of the right-of-use asset at the date of initial appiication.
fd] The effective interest rate for lease liabilities is 8.5% p.a.

---

Mar 31, 2024

3. MATERIAL ACCOUNTING POLICIES

A summary of the material accounting policies applied in the preparation of the financial statements are as given below. These accounting policies have been applied consistently to all the periods presented in the financial statements.

3.1 Property, Plant and Equipment

3.1.1 Recognition and Measurement Tangible Assets

Property, plant and equipment held for use in the production or/and supply of goods or services, or for administrative purposes, are stated in the balance sheet at cost, less any subsequent accumulated depreciation and impairment losses. The initial cost at cash price equivalence of property, plant and equipment acquired comprises its purchase price, including import duties and non-refundable purchase taxes, any directly attributable costs of bringing the assets to its working condition and location and present value of any obligatory decommissioning costs for its intended use, if any. In case of self-constructed assets, cost includes the costs of all materials used in construction, direct labour, allocation of overheads, directly attributable borrowing costs including trial run expenses (net of revenue).

Any material Spares having useful life of more than one year are capitalised under the respective heads as and when available for use.

Profit or loss arising on the disposal of property, plant and equipment is recognised in the Statement of Profit and Loss.

3.1.2 Subsequent Cost

Subsequent expenditure is recognised as an increase in the carrying amount of the asset or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits derived from the cost incurred will flow to the Company and the cost of the item can be measured reliably.The carrying amount ofreplaced item(s) is derecognised. Any material repairs of property, plant and equipment are recognised in the carrying amount of the item if it is probable that the future economic benefits of the costs incurred will flow to the Company. The carrying amount of the replaced item(s) is derecognised.

3.1.3 Capital Work-in-Progress

Capital work-in-progress is stated at cost which includes expenses incurred during construction period, interest on amount borrowed for acquisition of qualifying assets and other expenses incurred in connection with project implementation in so far as such expenses relate to the period prior to the commencement of commercial production.

3.1.4 Depreciation and Amortisation

Depreciation on tangible assets is provided on straight line method, considering residual value of 5% of the cost of the asset, over the useful lives of the assets, as specified in Schedule II of the Companies Act, 2013 except in case of Plant and Machinery and components thereof, where useful life is determined by technical experts. The useful life assumed by the technical experts is as under:

For these classes of assets, based on technical evaluation carried out by external technical experts, the Company believes that the useful lives as given above best represent the period over which Company expects to use these assets. Hence, the useful lives for these assets are different from the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013.

The estimated useful lives and residual values of depreciable/amortisable assets are reviewed at each year end, with the effect of any changes in estimate accounted for on a prospective basis.

Where the historical cost of a depreciable asset undergoes a change, the depreciation on the revised unamortised depreciable amount is provided over the residual useful life ofthe asset. Depreciation on addition/deletion during the year is provided on pro-rata basis with reference to the month of addition/deletion. Assets costing up to '' 0.05 Lakhs are fully depreciated after retaining five percent residual value of acquisition cost of asset in the year in which they are put to use. Depreciation on capital spares is provided over the useful life of the spare or remaining useful life of the mother asset, as reassessed, whichever is lower.

3.1.5 Derecognition

The carrying amount of an item of Property Plant and Equipment is derecognised on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising from the derecognition of an item of PPE is measured as the difference between the net disposal proceeds and the carrying amount of the item and is recognised in the Statement of Profit and Loss when the item is derecognised.

3.2 Intangible assets

3.2.1 Recognition and measurement

Intangible assets are stated at cost less accumulated amortization. Cost includes directly attributable expenditure for making the assets for its intended use.

3.2.2 Subsequent Cost

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognised in the Statement of Profit and Loss.

3.3 Impairment of Non-Financial Assets

The Company reviews the carrying amount of its assets on each Balance Sheet date for the purpose of ascertaining impairment indicators if any, by considering assets of entire Plant as Cash Generating Unit (CGU). If any such indication exists, the assets'' recoverable amount is estimated, as higher of the Net Selling Price and the Value in Use. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the Statement of Profit and Loss.

3.4 Borrowing costs

Borrowing Costs consists of interest and other costs that an entity incurs in connection with the borrowings of funds. Borrowing costs also includes exchange difference to the extent regarded as an adjustment to the borrowing costs. Borrowing costs directly attributable to the acquisition or construction of a qualifying asset are capitalized as a part of the cost of that asset that necessarily takes a substantial period of time to complete and prepare the asset for its intended use or sale. The Company considers a period of twelve months or more as a substantial period of time. Transaction costs in respect oflong term borrowing are amortized over the tenure ofrespective loans using Effective Interest Rate (EIR) method. All other borrowing costs are recognized in the statement of profit and loss in the period in which they are incurred. If any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalisation rate on general borrowings.

3.5 Inventories

Inventories of stores and spare parts are valued at or below cost after providing for cost of obsolescence and other anticipated losses wherever considered necessary.

Cost of inventory comprises all costs of purchase, non-refundable duties and taxes, cost of conversion including an appropriate share of fixed and variable production overheads and all other costs incurred in bringing the inventory to their present location and condition.

Inventories of items other than those stated above are valued at cost or net realizable value whichever is lower. Cost in respect of:

a) Raw Materials, Consumables, Stores & Spares and Traded Goods are computed under weighted average basis.

b) Work-in-Progress and Finished Goods are computed under weighted average basis.

c) By- Products are valued at net realisable value.

Net Realizable Value is the estimated selling price in the ordinary course less the estimated cost of completion and the estimated costs necessary to make the sale.

Materials and other supplies held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.

The Company considers factors like estimated shelf life, ageing of inventory etc in determining the provision for slow moving, obsolete and other non-saleable inventory and adjusts the inventory provisions to reflect the recoverable value of inventory.

3.6 Government Grants

Government grants are recognised when there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be received.

Government grants are recognised in Statement of Profit and Loss on a systematic basis over the periods in which the Company recognises as expenses the related costs for which the grants are intended to compensate. Where the Grant relates to an asset value, it is recognised as deferred income, and amortised over the expected useful life of the asset. Other grants are recognised in the statement of Profit & Loss concurrent to the expenses to which such grants relate/ are intended to cover.

Where the Company receives non-monetary grants, the asset and the grant are recorded gross at fair amounts and released to the income statement over the expected useful life and pattern of consumption of the benefit of the

i inrlprK/inn pQQpf

3.7 Foreign Currency Transactions

Foreign Currency Transactions are translated into the functional currency using the spot rates of exchanges at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchanges at the reporting date.

Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities are generally recognised in profit or loss in the year in which they arise except for exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those qualifying assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings, the balance is presented in the Statement of Profit and Loss within finance costs. Non monetary items are not retranslated at period end and are measured at historical cost (translated using the exchange rate at the transaction date).

3.8 Employee Benefits Short Term Benefits

Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related services are provided. Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within twelve months after the end of the period in which the employees render the related service are recognized in respect of employees'' services up to the end of the reporting period.

Other Long Term Employee Benefits

The liabilities for leave encashment that are not expected to be settled wholly within twelve months are measured as the present value of the expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the government securities (G-Sec) at the end of the reporting period that have terms approximating to the terms of related obligation. Remeasurement as the result of experience adjustment and changes in actuarial assumptions are recognized in statement of profit and loss.

Post Employment Benefits

The Company operates the following post employment schemes:

— Defined Benefit Plans

TThe liability or asset recognized in the Balance Sheet in respect of defined benefit plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The Company''s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods.

The defined benefit obligation is calculated annually by Actuaries using the projected unit credit method.

The liability recognized for defined benefit plans is the present value of the defined benefit obligation at the reporting date less the fair value of plan assets, together with adjustments for unrecognized actuarial gains or losses and past service costs. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. The benefits are discounted using the government securities (G-Sec) at the end of the reporting period that have terms approximating to the terms of related obligation.

Remeasurement of the net defined benefit obligation, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling, are recognized in other comprehensive income. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to the statement of profit and loss.

— Defined Contribution Plan

Defined contribution plans such as provident fund etc. are charged to the statement of profit and loss as and when incurred. Contribution to Superannuation fund, a defined contribution plan is made in accordance with the company''s policy and is recognised in the Statement of profit and loss.

3.9 Leases

The Company assesses whether a contract is or contains a lease, at inception of a contract. 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:

1. the contract involves the use of an identified asset

2. the Company has substantially all of the economic benefits from use of the asset through the period of the lease and

3. the Company has the right to direct the use of the asset.

Company as a lessee

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

At the date of commencement of the lease, the Company recognizes a right-of-use asset ("ROU") and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases), variable lease and low value leases. For these short-term, variable lease and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease Right-of-use assets

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses, if any. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. Refer to the accounting policies in Note 3.3 Impairment of non-financial assets. Extension and termination options are included in many of the leases. In determining the lease term the management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option.

Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

Lease hold Land for 60 years Office Premises for 3 years"

Lease Liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. Lease payments included in the measurement of the lease liability comprise:

♦ Fixed lease payments (including in-substance fixed payments) payable during the lease term and under reasonably certain extension options, less any lease incentives;

♦ Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;

♦ The amount expected to be payable by the lessee under residual value guarantees;

♦ The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and

♦ Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is re-measured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option.

Lease liability and ROU assets have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows. Lease liabilities have been classified as current and non current under the head financial liabilities. The Company has used a single discount rate to a portfolio of leases with similar characteristics Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases of Property, Plant & Equipment (i.e. those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

On transition to IND AS dated April 1,2020, the adoption of new standard resulted in recognition of Right-of-Use asset (ROU) of ''137.57 lakh, being leasehold land recognised as ROU Assets transferred from property, plant & equipment. On application of Ind AS 116, the nature of expenses has changed from lease rent in previous periods to depreciation cost for the right-to-use asset, and finance cost for interest accrued on lease liability.

Others

The following is the summary of practical expedients elected on initial application:

(a) Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date.

(b) Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on the date of initial application, variable lease and low value asset.

(c) Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.

(d) The effective interest rate for lease liabilities is 8.5% p.a.

---

Mar 31, 2018

A. Basis of Preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP), The Company has prepared these financial statements to comply in al| material respects with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention.

B.. Use of Estimates .

The; preparation of financial statements requires estimates, and assumptions to be made that affect the reported amount of assets and liabilities on the: date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

C. Property, Plant & Equipment

i) Tangible Fixed Assets are stated at cost of acquisition or construction (net of excise duty,VAT and GST) less accumulated depredation arid impairment losses, The cost of assets comprises of its purchase price and any directly attributable cost of bringing the assets to their location and working condition upto the date of Its Intended use.

ii) Intangible assets are stated at cost less accumulated’ amortization. Cost includes directly attributable expenditure for making the assets for its intended use. ...

iii) Capital Work-in-progress is stated at cost Which includes expenses incurred during construction period, interest on amount borrowed for acquisition / construction of qualifying assets and other expenses Incurred In connection with project implementation in so far as such expenses relate to the period prior to the commencement of commercial production,

D. Component Accounting

The company has adopted component accounting, as required Under Schedule II to the Companies Act, 2013, from 1 April 2015, The company was previously not Identifying components of fixed assets separately far depreciation purposes; rather, a single useful life/ depreciation rate was used to depreciate each item of property, plant and equipment.

Due to application of Schedule II to the Companies Act, 2013, the company has changed the manner of depreciation for its fixed, assets. Now, the company identifies and determines cost of each component/ part of the asset separately, if the component/ part has a cost which is significant to the total cost of the asset and has useful life that Is materially different from that of the remaining asset. These components are depreciated separately over their useful lives; the remaining components are: depreciated over the life of the principal asset.

E. Depreciation and Amortization

Depredation on Tangible Fixed Assets Is provided on prorate basis for the period of use, on straight-line method at the rates determined based on useful lives of respective assets as prescribed in the Schedule II of the Companies Act, 2013. Certain plant & machinery have been considered Continuous process plant on the basis of technical assessment. Leasehold land is amortised on straight line method over the period of the lease.

F. Impairment

The carrying amounts of Tangible Fixed Assets are reviewed at each balance sheet date to determine, if there Is any indication of Impairment based on external/internal factors. An impairment loss is recognized wherever the carrying amount of Tangible Fixed Assets exceeds Its recoverable amount which represents greater of the “net selling price” and “value in use” of the respective assets. The impairment loss recognized in prior accounting period ls reversed If there has been an improvement in recoverable amount.

G. Leases

Lease payments under an operating lease are recognized as expense in the Statement of Profit and Loss as per terms of lease

Leases which effectively transfer to the iessee substantially ali the risks and benefits Incidental to ownership of the leased item are classified and accounted for as firfanced^aseJjtase rental receipts are apportioned between the finance income and capital repayment based on the implicit rate of return.^f^rigept^ts are recognised as revenue/in the period in which they are earned,

H. Investments

i) Investments which are readily realizable and Intended to be held for not more than one year from the date on which such investments are made, are classified as current Investments. All other investments are classified as lone-term investments. The portion of long term term investments expected to be realized within twelve months after the reporting date are disclosed under current investments.

ii) Oh Initial recognition, all investments art measured at cost. The cost comprises purchase price and’ directly attributable acquisition charges such as brokerage, Fees & duties.

iii) Long-Term Investments are stated at cost, provision for diminution Is made if the decline in value, in the opinion of the management,, is other than temporary in nature.

I. Inventories

Inventories of stores and spare parts are’ valued at or below cost after providing for cost of obsolescence-and other anticipated losses wherever, considered necessary.

Inventories of items other than those stated above are valued at cost or net realizable value Whichever Is lower,

Cost in respect of:

a) Raw Materials, Consumables, Stores & Spares are computed under weighted average basis;

b)Work ln-Progrcss and Finished Goods ore computed under weighted average basis.

c) By- Products are valued at net realisable value.

Net Realizable Value is the estimated selling price in the ordinary course less the estimated cost of completion and the estimated costs necessary to make the sale.

Materials and other supplies held for use in the production of inventories are not written down below cost if the finished productions In which thev will be Incorporated are expected to b.e sold at or above cost.

J. Employees Benefit

Retirement benefit In the form of provident fund and superannuation fund are defined contribution schemes. The contributions to the provident fund and superannuation fund are charged to the statement of profit and loss for the year when: an employee renders the related service. The company has no obligation, other than the contribution payable to the Provident Fund and superannuation fund.

The company operates a defined benefit plan In the form of gratuity for Its employees. The cost of providing benefits under the plan is determined on the basis of actuarial valuation at each year end. Actuarial valuation Is carried out using the projected unit credit method. Actuarial gains and losses for the defined benefit plan are recognised in full in the period In which they occur in the statement of profit and. loss,

Accumulated leave, which is expected to be utilised within the next 12 months, Is treated as short-term employee benefit. The company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the: unused entitlement that has accumulated at the reporting date,

K. Revenue Recognition

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

Sale of Goods

Revenue from sale of goods Is recognised when all the significant risks and rewards of ownership of the goods have been passed to the buyer. The company collects sales taxes and value added taxes (VAT) and GST on behalf of the government and, therefore , these are not economic benefits flowing to the company. Hence, they are excluded from revenue. Excise duty deducted from revenue (gross) is the amount that Is included in the revenue (gross) and not the entire amount of liability arising during the years.

L. Borrowing Cost .

- Borrowing cost directly attributable to the acquisition or construction of qualifying assets is capitalized until the time all substantial activities necessary to prepare the qualifying assets for their use are complete. A qualifying asset is the one that necessarily takes substantial period of time to get ready for its intended use, All other borrowing costs are recognized as expenses in the period in which they are Incurred.

M. Taxation

Tax expense comprises current’ and deferred tax. Current income-tax is measured at the amount expected td be paid to the tax authorites in accordance with the Income-tax Act, 1961 enacted in India. The tax: rates and tax laws used to compute the. amount are those that are enacted or substantively enacted, at the reporting date

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

Deferred ta)f liabilities are recognised for all taxable timing differences, Deferred tax assets: are recognised for deductible timlhg differences only to the extent that there is resonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised- In situations where the company has unabsorbed depreciation or carry forward tax losses, all deffered tax assets are recogniscd only if there is Virtual certainty supported by convincing evidence that they can be realised against future taxable profits.

Minimum alternate tax (MAT) paid in a year Is. charged to the statement of profit and loss as current tax.The company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the company will pay normal. Income tax during the specified period , I. e. the period for which MAT credit is allowed to be carried forward. In the year in which the company recognizes MAT credit as an asset In accordance with the Guidance Note on Accounting for Credit Available in respect of MAT under the Income-tax Act, 1961, the said asset is created by way of credit to the statement of profit and loss; and shown as “MAT Credit Entitlement¹â€™ The company reviews the “MAT credit entitlement” asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.

N. Foreign Currency Transactions and Derivatives Foreign Curreney Transaetions and balances:

(i) Initial recognition

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

(il) Conversion -

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date.

(iii) Exchange differences .

The company accounts for exchange differences arising on translation/ settlement of Foreign currency monetary items as below:

1., Exchange differences arising on long-term foreign currency monetary items related to acquisition of a fixed asset arc capitalised and depreciated over the remaining useful life of the asset.

2 . Ail other exchange differences are recognised as income or as expenses in the period in which they arise.

(iv) Forward exchange contracts entered into to hedge foreign currency risk of an existing asset/ liability

The premium or discount arising at the inception of forward exchange contract is amortised and recognised as an expense/ income over the life of the contract. Exchange differences oh.such contracts, are recognised in the statement of profit and loss In the period in which the exchange rates change. Any profit or loss arising on cancellation or renewal of such forward exchange contract is also recognised as income or as expense for the period. None of the foreign exchange contracts are taken for trading or speculation purpose.

O. Government Grants

Government grants are recognized when there Is a reasonable assurance that the same will be received. Capital Grants relating to specific fixed assets are reduced from the gross value of the respective fixed assets, Other capital grants are credited to Capital Reserve. Revenue grants are recognized in the Statement of Profit & Loss .

P. Contingent Liabilities .

A contingent liability is a possible obligation that arises from past events, whose existence will be confirmed by the occurrence or nonoccurrence of one or more uncertain future events beyond the control of the company or a present obligation that Is not recognised because It is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises In extremely rare Cases where there is a liability that cannot be recognised because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence In thefinancial statements,

Q. Provisions

A provision is recognised when the company has a present obligation as: a result of past event, it is probable 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, provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. The expense relating to; any provision is presented in the statement of profit and loss, net of any. reimbursement.

R, Earning Per Share

Basic Earning Per Share (EPS) is computed by dividing the net profit or loss for the year attributable to Equity Shareholders: by the Weighted average number of equity shares outstanding during the year. Diluted EPS is computed by dividing the net profit or loss for the year attributable to Equity Shareholders by the weighted average number of equity shares outstanding during the year¹ as adjusted for the effects of ail dilutive potential equity shares, except where the result are anti-dilutive.

S. Cash Flow Statement ,

Cash Flow Statement presents the Cash Flows by operating, investing and financing activities of the Company. Cash and Cash equivalents presented in the Cash Flow Statement consist of gash on hand, cash at bank, and short - term investments with an original maturity of three months or less.