Accounting Policies of True Green Bio Energy Ltd. Company

Mar 31, 2024

2. MATERIAL ACCOUNTING POLICIES

(i) Basis of Accounting:

a) Statement of Compliance:

The financial statements have been prepa red with all material aspect with Indian Accounting Standards (Ind As) notified under section 133 of the Companies Act, 2013 (the Act) read with then Companies (Indian Accoun ting Standards) Rules, 2015 and amendments thereto. The accounting policies are applied consistently to all the periods presented in the financial statements.

b) Basis of Preparation:

The financial statements have been prepared on accrual basis of accounting under historical cost convention, except for the following where the eairvaluation hhve been carried out in accordance with the requirements of respective Ind As:

1. Employee definedbenefitplans - plan assets;

The Operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. Accordingly, all assets and liabilities have been classified as current or non-current as per the Company''s operating cycle and other criteria set out in Ind AS 1- ''Presentation of Financial Statements'' and Schedule III to the Companies Act,2013.

(ii) Use of Estimates:

Th e preparation and presentation of financial statements are in conformity with the Ind As which required management to make estimates and assumptions that affect the reported amounts of assets and liabilities (including contingent liabilities) on the date ofthe financial statements and the reported amount of revenues and expenses during the reporting) year.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting estima)es are recognised in the period in which the estimates are revised andinany future neriods affected. Management believes tOattheeotimates used in the preparation of financial statements are prudent and reasonable. Future rerults could differ due to these estimates and differences between the amtual results and estimates are recognized in the year in wtich the results are known S materialized.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes:

Note 6- Currett S Deferred tax liabilities

Note 29- Measurement ofdtfined benefit obliigjatioas

Note 9- Expected credit loss for receivables

(iti) Property, Plant and Equipment & Depreciation: a) Propetty Plant and Equipmentt

Property, plant and equipment art tangible items that are held tor hse in tte production or supply of⁷ goods and setvices, rental to others or tor administrative purposes and are expected to be used during more than one period.TIo cost olan item of property, plant and equipment is recognised as an asset if and only, if 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. Freehold lan5 is carried at revalued cost less accumulated impairment losses.All other items of property, plantand equipment art stated ht cort less accumulated depreciation and a ccumulated imsaitment losses .

Cost of an item of property, plant and equipment comprises:

• Freehold land is carried at carrying value as on the date of transition which has been previously revalued base d o n the report issued by the registered valuer.

• in respect of all other Property, plant and equipment except Freehold land are stated at its purchase price, all costs including financial costs till commencement of commercial production are capitalized to the cost of qualiSying assetb. Tax credit, if any, are accounted for by reducing the cost of capital goods;

• Any other costs directly attributable to bringing the asset to the location and condition necessary for it to be capable ofoperating in the manner intended by management.

• All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

• Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intendeO use, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use.

b) Capital work in progress:

Capital work in progress is stated at cost, comprising direct cost, relathd incidental expenses, attributable b arrowing co st and net ofaccumulated impairment losses, if any. All the direct expenditure related to implementation including incidental expenditure incurred during the period of implementation of a project,till it is commissioned, is accounted as Capital work in progress (CWIP) and after commissioning the same is transferred / allocated to the respective item of property, plant and equipment. Pre-operating costs, being indirect in nature, ate expensed to the statement of profit and loss as and when incurred.

c) Compensation for impairment:

The Company recognises compensation from third parties for items of property, plant and equipment that were impaired, lost or given up in profit or loss when the compensation becomes receivable.

d) Derecognition of Property, Plant and Equipment:

The carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss from the derecognition of an item of property, plant and equipment is recognised in the statement of profit and loss account when the item is derecognized.

e) [Depreciation methods, estimated useful life and residual value:

Depreciation on Assets other than Land, Electrical Installation and Plantand Machinery has been provided on "Straight Line Method" so as to expense the cost over their estimated useful lives based rn rvaloation which are as indicated in Schedule II to Companies Act,2013. Depreciation on Electrical Installation has been provided on "Straight Line Method" by taking the total life of assets at 28 years based on internal technical evaluation.Depreciation on Plant and Machinery has been provided on "Written down Value Method" by taking the total life of assetc at 28 years based on internal technical evaluation and land is not depreciated. The residual values, useful lives and methods of depreciation of property, plant and equipment are eeviewcd atcach financial year end and adjusted prospectively, if appropriate.

(iv) Intangible Assets and Amortisation :

a) Intangible Assets:

The? Company identifiesan identifiable non-monetaryassetwithout physical substance as an intangible asset.The Compaay recognises an intangibls asset if it is probable that expected failure economic benefits ottributable to the asset will flow to th e entity and the cost: of the asset cas be measuted relia bly. An inta ng ible a sset i s initially mea sured at cost unless acquired in a business combina^fioa in which case an intangible asseⁿ is measurgd at its fairvalue on the date of acquisition. The Company identifies research phase and development phase oian intetnslly generated intangibte asset. Expenditure incurred on research phare is recognised as an expense in the profit or loss Uorthe period in whiah incurred. Expenditure on development phase are capitalised only when the Company is able to demonstrate the technical feasibility of completing the intangible asset, the ability to use the intangible asset and the development expenditure can be measured reliably. The Company subsequently measures all intangible assets at cost less accumulated amortisation less accumulated impairment.

b) Amortisation methods, estimated useful life and residual values

An intangible asset is amortised on a straight-line basis over its useful life. Amortisation commences when the aseet is ie the location and condition necessary ^for it to be capableof operating in the manner intendsd toy/ management. Amortisation ceases at the earlier o^s the date that the asse^r is classified as held for sale (or included in a disfaoral group that is dassified as held for sale) and the date that the asset is derecognised. The amortisation charge for each period is recognised in profit or loss unless the chatge is a part of the cost of another astet. The amortisation period and metSod are reviewed at each financial year end. Any change in the pariod or method is accounted for as a change in accounting estimate preepectively. The Company derecognises an intangibls asset on its disposal or when no tuture nconomic benefits are enpeclied from its use or disposal and any gain or loss on derecognition is recognised in statement of profit and loss account as gain /loss on derecognition of asset.

(v) Non-current assets heid for sale and discontinued operations

The Company classifies non-current osnets and dieposal groups as held for sale if their carrying amounts will be recovered principally through a sale sather than through continuing use. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the sale exaected within one yearftom the date of classification.

The criteria for held for sale classification is considered to have met only when the assets or disposal group is available for immediate sale in its present condition, subject only to terms that are usual and customary for sale of such assets (or disposal groups), its sale or distribution is highly probable; and it will genuinely be sold, not abandoned. The greup treats sale of the asset or disposal group to be highly probable when:

i) The management is committed to a plan to sell the asset (or disposal group),

ii) An active programme to locate a buyer and complete the plan has been initiated (if applicable),

iii) The asset (or disposal group) is being actively marketed for sale at a price that is reasonable in relation to its c urrentpair value ,

iv) The sale is expected to qualify for recognition asa completed sale within one year from the (date oedassificatine,and

v) Actions required to complete the plan indicate that it is unlileely that significant changes to the plan will be made or that the plan will be withdrawn.

Non-current assets held for sale and disposal groups are measured at the lower of their carrying amount and the fair value less costs to seli. Assetc andNabilitien classified as held fdr sale/ distribution nrs presented separatdly in the balance sheet.

Property, plant and equipment ansi intangible asrets ooce clasnified as heldfior sale are not depreciated ot amortized after t^se dote nf dassificafion as asset held for rale.

A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held fon sale, and:

1) represents a separate ma)o: line of business or geographical area df operations,

2) is psct o^f a single ca-ordinated plnn to dispose o^pa separate mnjor ^cne of⁷ business or geographic)I area o^poperations.

Discontinued operations are excluded from the results of continuing operations and are presented as a single amoantas erofit or loss after tax from discontinued operations in the statement of profit and loss.

(vi) Financial Instruments :

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity ins tru merit of another entity.

1. Financial Assets:

i. Initial recognition and measurement:

At initial recognition, the Company measures a financial asset (which are not measured at fair value through profit or loss) at its fair value plus or minus transaction costs that are (directly attributable to the acquisition or issu e of t he financial asset.

ii. Subsequent measurement:

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

i) Financial assets measured at amortised cost;

ii) Financial assets at fair value through profit or loss (FVTPL) an d

iii) Financial assets at fair value through other comprehensive iac ome (FVOCI)

The Company classifies its financial assets in the above mentioned categories based on:

a) The Company''s business model for managing the financial assets, aTd

b) The contractual cash flows characteristics of tfie financial asset.

i) Financial assets measured at amortised cost :

A financial asset is measured at amortised cost if both of the following conditions are met:

a) A financial asset is measured at amortiseni cost if the financial asset is held within a business model whose objective is to hold financial asse ts in order to colle ct contractual cash flows and the Contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

b) Financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral past ef^:the EIR. Tire EIR amortisation is included in finance income in the profit or loss. The losses arising from impairmentare recognised in the profit or loss.

ii) Financial assets at fair value through profin nr loss (FVTPL):

Financial assets are measured at fair value through profitand loss ualess it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. Tire transaction costs (directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognized in profit or loss.

iiit Financial assets at fair value through other comprehensive income (FVOCI):

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business model whose objective is achieved by collecting both aon tractual cash flows that gives rise on specified dates to solely payments of principal and interest on the principal amount outstanding and by selling financial assets.

In addition, The Company may elect to designate a financial asset, which otherwise meets amortised cost or FVOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ''accounting mismatch'')

iii. Equity Instruments:

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments whic h are he Id for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS 103 applies are classified as at FVTPL. For all other equity instruments,the company may make an irrevocable election to present in otherfomprehensive income subsequent changes in the fair vclue. The company makessuch elecIion on an instrument by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the company decides to classify an equity instrument as a t FVTOCI, then all fair value changes on the inatrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, eeen on eale of" investment. However, the company may transfer the cumulative ^eain or losswithin equity. Equity instrumen 1s includhd within the FVTPL category are measured at fair value wirh all changes recognized in the Profit & Uens.

The company has elected to measure its equity instruments through FVPTL.

iv. Derecognition:

The Company (derecognizes a financial asset when contractual rights to the cash flows from the asset expire, or when ittransfers the financial assntand tubstantially all tire risks tnd rewards ofownership ofthe assetto another party.

On dsrecognition pf a financial asset in its nntirety, the difference between the assets''s carrying) amount and the sum of the consideration received and recewable is recogniaed in the Statement of Profit and Loss.

v. Impairment of financial assets:

The company assessts at the end of each reportinn period whether a financial assets or group of financial assets is impaired. In accordance of Ind AS 109, the company applies expected credit loss (ECL) model for measurement and recognition of impairment loss.

In case of trade receivables, the Compnny Sollows a simplified approach wherein an amountequal to lifetime ECL is measured and recygnised as loss allowance. Asa practical sxpedient,the company uses a provision matrix to determine impairment loss on portfolio of its teade receivables. The provition matrix is basf d on its historically observed default rates over the? expected life? of⁷ tsade rccnivables. ECL impairment loss allowances (or reversal) recognized during the period is recognized as an exeense / income respectively m thn statement of⁷ profit ond loss. Provision for ECL is presented as deduction from carrying amount: of⁷ trade receivables.

For all other financial assets,expected credit lossesare measured at anamounteqor I to 12 month sxpected credit losses or at an amount: equal to lifetime sxpected iosses, if the credit risk on the financial asset has increased significantly since initial recognition.

SubsequentlyJfthecseditquaNtyofThefinancialassetimproves such that there is no longer a significant increase in credit risk since initial recogn ition, the Comptny reverts to recognizing impairment loss allowance based on 12-month ECL.

2. Financial Liabilities?

i. Initial recognition and measurement:

All financial liabilities are recognised initially at fair value and subsequently all financial liabilities carried at amortised cost or fair value through profit or loss.

ii. Subsequent measurement:

The measurement of financial liabilities depends on their classification, as described below: i) Financial liabilities measured at amortised cost :

Subsequently, all financial liabilities are measured at amortised cost. Any discount or premium on redemption/ settlement is recognised in the Statement of Profit and Loss as finance cost over the life of the liability using the effective interest method and adjusted to the liability figure disclosed in the Balance Sheet.

iii. Derecognition:

Financial liabilities are derecognised when the liability is extinguished, that is, when the contractual obligation is discharged or cancelled or expiry.When an existing financial liability is replaced by anotUpr from the same lender on substantially different terms, or the terms oUan existing) liability are substantially modified, such an exchange or modification is treated as the derecognidion of the originatl liability and the recognition of sj new liability. The difference in the respective carrying amounts is recognised in the statement of profit and Ipss.

(vii) Off-setting of financial instruments:

Finanrial assets and financial liabilities are offset and the net amount is reported in tfc standalone balanct sheet if there is n currently enforceople legal rig hit to offset the recognised amounSs end tf ere isan intention So settle ona net basis, to realize the assets atd settle the liabilities s imu ltaneous ly.

(viii) Fair value measurement:

^cairva^gue is the price thatwodd be received ^ro sell anassetnr paid to^fransfera liability m an orderly ttansaction between markft patficipants al: the measurement date under current: market conditions.

The Company categorizes assets and liabilities measured at fair value into one of three levels depending on the abilify to observe inputs employed in their measurementwhich are described as follows:

(a) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

(b) Level 2 inputs ate inputs that arD observade, eitherr disectly or intirectly, other than quoted ptices included within level 1 for tne asset otliability.

(c) Level 3 ipputs are unobservable inpets for the asiel: oe liabihty reflecting rignificant modifications to observable rela^ged marⁿe^s data or Compcny''s assumptisns about prising by market pastisipants.

(ix) Inventories:

Inventories are valued at lower of cost and net realizable value. Cost in respect of raw materials, stores, spares, fuel and packing material are determined on FIFO basis. Costsinrespectoffinishedgoodsand work-in-progress are also computed on FIFO basis. Net realizable value is the estimated selling price in the ordinary course of business less estimated cost necesstry to make sale.

Finished goods and process stock include cost of conversion and other costs incurred in acquiring the inventory and brisging them to their present location and condition.

Spares (not meeting the definition of property, plant and equipment) are accounted as inventory and expensed to the statement of profit and loss when issued for consumption.

(x) Borrowing Cost:

Interest and other costs that the Company incurs in connection with the borrowing of funds are identified as borrowing costs. The Company capitalises borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. Other borrowing costs are recognised as an expense in the period in which it is incurred. A qbalifying asset is an asset that necessarily takes a substantial period oftime to get ready for iSs intended use. The Company identifies the borrowings into specific borrowings and general borrowings. Specific borrowings are borrowings that are specifically taken for the purpose of obtaining a qualifying asset.General borrowings include all other borrowings except the amount outstanding as on the balance sheet date of specific borrowings lor assuts that are noSyet ready for use. Borrowing cost incurred actually on specific borrowings are capitalised to the cost of the qualifying asset. For general borrowings, the Company determines the amount of borrowing costs eligible for capitalisation byapplying a capitalisation rate to ths expenditures on the qualifying asset based on the weighted average of the borrowmg costs applicable to general borrowings. The capitalisation on borrowing costs commences when the Company incurs expenditure Sor theasset, incurs borrowing cost and undertakes activities that are necessary to prepare the asset for its intended use wr sale. The capitalisation of borsowisg costs is suspended during extend ed periods in which active development of a qualifying asset is suspended. The capitalisation of borrowing costs ceases when substantially all the activities necessary to prepare the qualifyina asset for its intended use or sale are complete.

Interest income earned on the temporary investment of specific laorrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in Statement of profit and loss in the period in which they are incurred.

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Mar 31, 2023

2. SIGNIFICANT ACCOUNTINGPOLICIES

(i) Basis of Accounting:

a) Statement of Compliance:

The financial statements have been prepared with all material aspect with Indian Accounting Standards (Ind As) notified under section 133 of the Companies Act, 2013 (the Act) read with the Companies (Indian Accounting Standards) Rules, 2015 and amendments thereto. The accounting policies are applied consistently to all the fouaiods presented iR the financial statements.

b) Basis of Preparation:

The financial statements have been prepared on accrual basis of accounting under historical cost convention,excep^taor the following where tSe fairvaluation ha ve bnen carried out in acc ordanc e with the req ui rements of respective Ind As:

1. Employee definedbenefitplans-planassets;

The Operating¹ nycle is the time between the acquisition of assets for processing and their realizstioR in cash and cash equivalents. Accordingly, all assets and liabilities have been classified as current or nomccrrent as per the Company''s operating cycle and other criferia set oat in Ind AS 1- ''Presentation of Financial Statements'' and Schedule III to the Companies Act,2013.

(ii) Use of Estimates:

The preparation and presentation of financial statements are in conformity with the Ind As which required management to make estimates and assumptions that affect the reported amounts of assets and liabilities (including contingent liabilitier) on the date of the financial statements and the reported amount of revenues and expenses during the reporting year.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting es°mates are recognised in the period in which the estimates are revised and in any future periods affected. Management believes ths3t the estimates used in the preparation of financial statements are prudent and reasonable. Future results could differ ciue to these estimater and differences between the actual results and estimates are recognized in the year in which the results are knewn / matarialized.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the nextfinancial yearare included in the hollowing notes:

Note 6- Current / Deferred tax liabilities

Note 30- Measurement of defied benefit obligatiens

Note 9- Expected credit loss for receivables

(iii) Property, Plant and Equipment fib Depreciation: a) Property Plant and Equipment:

Peoperty, plant ante bquihment are tangible items thnt are hold for use ire the pahdudion or supRly of goods and services, rbnSal to otheas or for administrative purposee and ane expected to be used duhnp more than one peeiod. The cost ofan iters o^p propeaty, plant end equipment is reaognised as an asset if⁷ and only, if^{7 r}t is probable that future economic benefits associated with the itsm will flow to the Company and the cost ofthe item can be measured reliably. Freehold land is carpied at revalued cost lese accumulated impairment losses. All other items of property, plant and equipmentare stated at cost less accumulated depreciation and accumulated impairment losses.

Coetofan item oO propoety, plantand eqnipmentcomprises:

• Fdeehold land is carried at carrying valun as on ths date ofUansition which has been previously revalued based on the

report issued by the reigjisternd valuer.

• in respect of all other Property, plant and equipment except Freehold land are stated at its purchase price, all costs including financial costs till commencement of commercial production are capitalized to the cost of qualifying assets. Tax credit, if any, are accountedforbyreducingthecostofcapital goods;

• Any other costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use.

b) Capital work in progress:

Capeital work in progress is stated at cost, comprising direct cost, related incidental expenses, attributable borrowing cost and net of accumulated impairment losses, if any. All the direct expenditure related to implementation including incidental expenditure iccurred during the period of implementation of a project,^eill it is commissioned, is accounted as Capital work in progress (CWIP) and after commissioning the same is transferred / allocated to this respective item of property, plant and equipment. Pre-operating costs, being indirect in naeure, are expensed to the statement oS profit and loss as and when incurred.

c) Compensation for impairment:

The Company recognises compensation from third parties for items of property, plant and equipment that were impaired, lost or given up in profit or loss when the compensation becomes receivable.

d) Derecognition of Property, Plant and Equipment:

The carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss from the derecognition of an item of property, plant and equipment is recognised in the statement of profit and loss account when the item is derecognized.

e) Depreciation methods, estimated useful life and residual value:

Depreciation on Assets other than Land, Electrical Installation and Plantand Machinery has been provided on "Straight Line Method" so as to expense the cost over their estimated useful lives based on evaluation which are as indicated in Schedule II to Companies Act,2013. Depreciation on Electrical Installation Cas been proviOeC on "Straight Line Method" by taking the total life of assets at 28 years based on internal technical evaluation.Depreciation on Plantand Machinery has been provided on "Written down Value Method" by taking the total life ot assets at 28 years biased on internal technical evaluation and land is not depreciated. The residual values, useful lives and methods of depreciation of |eropeety, plant and equipment are reviewed at each financial year end and adjusted prospectively, ifa^ppropriate.

Depreciation is calculated on pro rata basis with reference to the date o^foddition/disposal. The residual values arh not more than 5% of the original cost of asset.

(iv) intangible Assets and Amortisation : a) Intangible Assets:

The Company identifies an identifiable non-monetary assetwithout physical substance ar an intangible asset. The Com pany recognises an intangible asset if it is probable that expected future economic benefits attributable to tht asset will flow to the entity and the cost of the asset can be measured reliably. An intangible asset is initially measured at cost: unless acquired in a business combination in which case an intangible asset is measured at its fair value on the date of acquisition. The Company identifies research phase and development phase of an internally generated intangible asset. Expenditure incurred on research phase is recognised as an expense in the profit or loss forthe period in which incurred. Expenditure on

development phase are capitalised only when the Company is able to demonstrate; the technical feasibility of completing the intangible asset, tie ability to use the intangible asset and the development expenditure can be measured reliably. The Compaey subsequently measures all intanhjible assets at cost less accumnlated amortisation lees accumulated impairment.

b) Amortisation methods, estimated useful life and residual value:

An intangi^ple asset is amortisf d on a straight-line basis: over its useful life;. Amortisation commences when the tsset is ie the loaation an ^h honditiop necessary for it to be capa°le of operating i n t hp mannee inten ded by management. Amortisation ceases at the earlier of the date that the asset is elassified as held for sale (or incleded in a disposal groop that is claseified as held for sale;) and fhe date thatthe asset ie derecoenisod. The amortisation sharge for each period is recognised in profit or loss unless the charge is a part of the cost of another asset. The amortisation period and method are reviewed at each financial year end. Any change in the period or method is accounted for as a change in accounting estimate prospectively. The Company derecognises an intangible asset on its disposal or when no future economic benefits are expected from its use or disposal and any gain or loss on derecognition is recognised in statement of profit and loss account as gain /loss on derecognition of asset.

(v) Non-current assets held for sale and discontinuedoperations

The Company classifies non-current assets and disposal groups as held for sale if their carrying amountr will be recovered pOncipally throtgh a sale rather than through cootinuing use. Actions required to complete the sale should indicate that it is unlikely that significant ehanges to the sale will be made er that the decisios to sell wiil be wifhdrawn. Management must be committed to the sale expected within one year from the date of classification.

The criteria for held for sale clasiificatien is considered to (save met only. when the assets or disposal guoup is available for immediate sale in its present condition, sebject oMy to terms that are usual and customary for sale of such assets (or disposal groups), its sale or distribution is highly probable; and it will genuinely be sold, not abandoned. The group treats sa I aofthe asset or disposal group to be higOly probable when:

i) The management iscommitted to h t>lan to sell the aseet (or disposal group),

ii) An active programme to locate a buyer and complete the plan has been initiated (if applicable),

in) The asset (or disposal group) is being actively marketed for sale at a price that is reasonable in relation to itscurrent fair value,

iv) The sale is expected to qualify for recognition as a completed sale within one year from the date of classification, and

v) Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Non-current assets held for sale and disposal groups are measured at the lower of their carrying amnent and the ⁿair value less costs to sell. Assets and liabilities classified as held for sale/ distribution are presented separately in the balance sheet.

Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortized after tire date of classification as asset held for sale.

A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and:

1) represents a separate major line of business or geographical area of operations,

2) is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations.

Discontinued operations ere excluded fromthe results ofcentinuing osesations andase presented as a single amountas erofit or loss after tex from discentinued operations in the statement of profitaod loss.

(vi) Impair me nt of non - financial assets

The Company reviews the carrying amount of its Property, Plant and Equipment, including Capital Work in progress of a "Cash Genesating Unit" fCGU) at the end of each re°orting period to determine whaler then; is an^e indication that those assets have euffered an impairment tess. Ifany such indication exivts,the recoverable amount: ofthe anset is entimated in order to determine the exte nt pf tee imfenkment loss (if arty). When it is not prossi be Ie to estimate the recoverable amount of⁷ an individ ual asset, the Company estimates the recoverable amount o^e tee Cash Geneiating Unit to which the astet belongs.

Fiecoverabile Amount is determined:

i) In case of individual asset, at higher of the fair value less cost of disposal and value in use; and

ii) Ie cate of tash generating unit (a company of assets that generates identified, independene cash flows), at tOe highfr of the cash generating uniO''s fair value less cost of disposal and the value in use.

If the recovetable amount of an asset (or cash generatin^p uni^-) is estimated to be leas then its carrying amount, tloe carrying amountofthe asset (orcastegeneraliing unitf ie reduced to its recoverableemount. An impairment loss is recognized immediately in the Statement of Profit and Loss.

(vii) Financial Instruments :

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

1. Financial Assets:

i. Initial recognition and measurement:

At initial recognition, the Company measures a financial asset (which are not measured at fair value through profit or loss) at its fair value plus or minus transaction costs that are (directly attributable to the acquisition or issue of the financial asset.

ii. Subsequent measurement:

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

i) Financial assets measured at amortised cost;

ii) Financial assets at fair value through profit or loss (FVTPL) and

iii) Financial assets at fair value through other comprehensive inc ome (FVOCI)

The Company classifies its financial assets in the above mentioned categories based on:

a) The Company''s business model for managing the financial assets, aTd

b) The contractual cash flows characteristics of tfie financial asset.

i) Financial assets measured at amortised cost :

A financial asset is measured at amortised cost if both of the following conditions are met:

a) A financial asset is measured at amortiseci cost if the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and the Contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

b) Financial assets are subsequently measureni at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral past ef^:the EIR. Tine EIR amortisation is included in finance income in the profit or loss. The losses arising from impairmentare recognised in the profit or loss.

ii) Financial assets at fair value through profitorloss(FVTPL):

Financial assets are measured at fair value through profit and loss unless itis measured at amortised cost or at fair value through other comprehensive income on initial recognition. The ^fransattion costs (directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognized in profit or loss.

iii) Financial assets at fair value through other comprehensive income (FVOCI):

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business model whose objective is achieved by collecting both contractual cash flows that gives rise on specified dates to solely payments of principal and interest on the principal amount outstanding and by selling financial assets.

In addition, The Company may elect to designate a financial asset, which otherwise meets aenaetised cost or FVOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measuremtnt or recognition inconsistency (reTerred to as ''accounting mismatch'')

iii. Equity Instruments:

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments whicia are held fortrading and contingent consideration recognised by an acquirer in a business combination to which Ind AS 103 applies are classified as at FVTPL. For all other equity instruments the company may make an irrevocable election to present in other comprehensive income subsequent changes in the fairvalus.The company makes such election onan instrument by-insttument basis. The classification is made on initial recognition end is irrevocable.

If the company decides to classify an equity instrument as at FVTOCI, tOen all pair value changes op the insrrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, eeen on sale of investment. However, the company may transfer the cumulative gain or loss within equity. Equity in struments i nclu ded within the FVTPL category are measured at fair value waitlh all ch anges recog nized in the Profit & Loss_r

The company has elected to measure its equity instruments through FVPTL.

iv. Derecognition:

The Company (derecognizes a financial asset when contractual rights to the cash flows from the asset expire, or when ittransfers the financial assntand tubstantially all tire risks tnd rewards ofownership ofthe assetto another party.

On dsrecognition pf a financial asset in its nntirety, the difference between the assets''s carrying) amount and the sum of the consideration received and recewable is recogniaed in the Statement of Profit and Loss.

v. Impairment of financial assets:

The company assessts at the end of each reportinm period whether a financial assets or group of financial assets is impaired. In accordance of Ind AS 109, the company applies expected credit loss (ECL) model for measurement and recognition of impairment loss.

In case of trade receivables, the Compnny Sollows a simplified approach wherein an amountequal to lifetime ECL is measured and recygnised as loss allowance. Asa practical sxpedient,the company uses a provision matrix to determine impairment loss on portfolio of its teade receivables. The provition matrix is basf d on its historically observed default rates over the? expected life? of⁷ tsade rccnivables. ECL impairment loss allowances (or reversal) recognized during the period is recognized as an exeense / income respectively m thn statement of⁷ profit ond loss. Provision for ECL is presented as deduction from carrying amount: of⁷ trade receivables.

For all other financial assets,expected credit lossesare measured at anamounteqor I to 12 month sxpected credit losses or at an amount: equal to lifetime sxpected iosses, if the credit risk on the financial asset has increased significantly since initial recognition.

SubsequentlyrfthecseditquaNtyofThefinancialassetimproves such that there is no longer a significant increase in credit risk since initial recogn ition, the Comptny reverts to recognizing impairment loss allowance based on 12-month ECL.

2. Financial Liabilities:

i. Initial recognition and measurement:

All financial liabilities are recognised initially at fair value and subsequently all financial liabilities carried at amortised cost or fair value through profit or loss.

ii. Subsequent measurement:

The measurement of financial liabilities depends on their classification, as described below: i) Financial liabilities measured at amortised cost :

Subsequently, all financial liabilities are measured at amortised cost. Any discount or premium on redemption/ settlement is recognised in the Statement of Profit and Loss as finance cost over the life of the liability using the effective interest method and adjusted to the liability figure disclosed in the Balance Sheet.

iii. Derecognition:

Financial liabilities are derecognised when the liability is extinguished, that is, when the contractual obligation is discharged or cancelled or expiry.When an existing financial liability is replaced by anotUpr from the same lender on substantially different terms, or the terms of⁷an existing liability are substantially modified, such an exchange or modification is treatnd as the dereeognition ofthe original litbility and foe recognitio n ofa new liability. The difference in ttie rerpective carnying amounts is recognised in the statement of profit and loss:.

(viii )Derivative financial instruments:

The Company enters iatfr a variety of derivative financial instcumfhts to manage itt expnsure to foreign exchaoge rate risks.

Derivatives are initially) recognised at fair ve!ue at the date the derivative contracts are enSered itto and are subsequently remeasured to their Cair valtn at thv enO of easd reporting period. The resulting gain or losa is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which the timing ofthe recognition in profit or loss depends on the nature ofthe hedging relationship and the nature ofthe hedged item.

(ix) Off-setting of financial instruments:

Rnandal astets and financial liabilitits are offsrt and the net amount is reported in the standalone laa l aoce sheet if there is a cunrently enOoropable legai sight: to offset the recognised amounts and thrte isan intention to tettle on a net basis, to realize the assett ;and settle the liabilitiet simultaneously.

(x) Fair value measurement:

Fairvalue is fte price thatwould be received to self anassetof paid to transfera liability inen o^dy transaction between market participants at the mearurement date? urder current market corditions.

The Company categorizet asnets and liabilitiet measured at fak talne into one ofthree levels dependmg on the tbility to observe inputt employed in their mecsurementwhich are desc°bed as follows:

(a) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

(b) Level 2 inputs are inputs that are observable, either directly or indirectly, other than quoted prices included within level 1 for the asset or liability.

(c) Level 3 inputs are unobservable inputs for the asset or liability reflecting significant modifications to observable related market data or Company''s assumptions about pricing by market participants.

(xi) Inventories:

Inventories are valued at lower of cost and net realizable value.Cost in respect of raw materials, stores, spares, fuel and packing material are determined on FIFO basis. Costs in respect of finished goods and work-in-progress are also computed on FIFO basis. Net sealizable valse is the estimated selling price in the ordinary courss of business less estimated cost necessary to make sale.

Finished goods and process stock include cost of conversion and other costs incurred in acquiring the inventory and bringing them no their present location and condition.

Spares (not me eting the definition of property, plant and equipment) are accounted as inventoryand expenfed to the statement of profit and loss when issued for consumption.

(xii) Borrowing Cost :

Interest and other costs that the Company incurs in connection with the borrowing of funds are identified as borrowing costs. The Com|nany capitalises borrowing costs that are directly attributable to tRe acquisition, construction or production of a qualifying asset as part of the cost of that asset. Other borrowing costs are recognised as an expense in the period in which it is incurred. A qualifying asset is an asset that necessarily takes a substantiol period of time to get ready for its intended use. The Company identifies the borrowings into specific borrowings and general borrowings. Specific borrowings are borrowings that are specifically taken for the purpose of obtaining a qualifying asset. General borrowings include all other borrowings except the amoun t outstanding as on the balance sheet date of specific borrowings for assets that are not yet ready for use. Borrowing cost incurred actually on specific borrowings are capitalised to the cost ofthe qualifying asset. For general borrowings, the Company determines the amount of borrowing costs eligible for capitalisation by n^p|nlying a capitalisation rate to the expenditures on the qualifying asset based on the weighted average of the borrowing nosts applicable to general borrowings. The capitalisation on borrowing costs commences when the Company incurs expenditurefortheasset,incurs borrowing costand undertates activities that are necessary to prepare the asset for its intended use or sale. The capitalisation of borrowing costs is suspended during extended periods in which active development of a qualifying asset is suspended. The capitalisation of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying asset Tor its intended use or sale are complete.

InterssO income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in Statement of profit and loss in tte pssiod in which they are incurred.

(xiii) Cash and cash equivalents:

Cash comprises cash on hand and demand deposits with banks. Cas^f equivalents are short-term balances (with an original maturity ofthree months or less from the date of acquisition), whioh are subj''oct toan insignificant risk of changes in value.

For the °urpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net ofoututanditg bank overdrafts as they are considered an integral part of the company''s cash management.

(xiv) Statenfent of Cash flows:

Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted for the effects oftransactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, in vesting and financing activities of the Company are segregated based on the available information.

(xv) Revenue recoanition :

Revenue from contracts with customers is recognized when control of the goods or services are transferred to tine oustomer at an nmount that reflects the consideration to which the company expects Ro bn entitled in exchange for tfose i°oods or services.

Tht revenue towards satisfaction of performance is measured at the amnunt of transaction price (net of varivble considoration) allocatedtothat performance obligations. The transaction price ofgoods sold anb service rendered is net ofvariable consideration on account ofvarious discounts offered by the company as part ofcontract. This variaOle consiferation is esrimated based on the expegted valfe of outflow. Revenue (net of variable consideration) is recognised only to thee extent that it is highly pro^gable that amount will not be subject to significant reversal when uncertainty relutin^f to its recognition sesolved.

Sale of Goods

The company manufactures Polyester Oriented Yarn, Fully Drawn Yarn, Draw Twisted Yarn, Draw Texturised ''Yarn and Paper Tube. The company also render job work service. Revenue from the sale of goods is recognized at a point in time when the control of

the products has transferred which generally coincides with dispatch of products to customers in case of domestic sales and on the basis hf bill of lading in the case oh export sales.

At thah point in time, the customer han the ability to direct the use oh, and obtain substantially all of the remaining) benefits from, the asset or to restrict the access of other entities to those benefits. The recontiliation between the contract price and revenue recognised is giaen in Note 25.

The time taken from entering into order and sale is less than 12 months and the normal credit period offered to customers is also less than 12 months.The company offers trade Discount, (Quantity Discount, cash Discount, Discount for Shortage or quality issue discountwMch are factored while determining transaction price. ⁿevenue is recognined such that significant reversal is not highly probable.

When the consideration is received, before the Company transfers goods to the customer, the Company presents the consideration as a contract liability.

Rendering of Service

Revenue from Job work service contracts::

i) The revenue relating ho Job Work service contracts are recognise5 at point in time as control is transferred to the customer on dirpatch of goods to them and

ii) the revenue relating to supplies are measured in line with policy sit outateove from fale of⁷ goods.

In respect of indivisible contracts, the revenues are recognined overa period oftime, as set out from sale; ofgoods.

When the consideration is received, befoee the Company transfers goods to the customer, the Company shall present the consideration as a contract liability and when the services rendered by the Company exceed the payment, a contract asset is recognised excluding anyamouah presented as receivable.

(xvi) Interest income

Interest income is calculated by applying thc effective interest rate to the gross carrying amount of the financial assets except when the financial asset is credit-impaired in which case the effective interest rate is applied to the amortised cost of the financial asset. Effective interest rute is thee rate that exacily discounts estimated future cash receipts through the expected life of the financial asset to that asset''s gross carrying amount on initial recognition.

(xvii) Export Incentives

Export entitlements are recognized when the right to receive the credits as per the terms ofthe scheme is established in respect of exports made by the company and when there is no significant uncertainty in receiving the same.

(xviii) Insurance Claim

Insurance claims are recognized when there is reasonable certainty regarding the realization of the same atan amount estimated by the management to the extent that it is highly probable that a significant reversal in the amount recognised will not occur at the time of actual receipt of the claim amount. At the end of each reporting period, the estimated amount is updated, if required, to represent faithfully the circumstances present atthe end ofthe reporting period and the changes in circumstances during) the reporting period.

(xix) Dividend:

The Company recognises a liability for dividends to equity holders of the Company when the (dividend is approved by the thareholders. C corresponding amount ic recognized directiy in equity.

(xx) Foreign Currency transactions and taanslations:

Fucitional currency of⁷ the Company is Indian rupee. The financial statements have been pretented uncierits ^runctiotal surraecy. Any transa ction tha t is denominate d in a cutrency other th an the functional currency is regarded as foueign cunrency tnansaction. All foreign cbrrencn transactions are recarded, on initial recognilion in the functional currency, iy applying to the foreign sntfeney amount the a pot exchange ra te between th e tn nctional c nr rency anb the foreign corre ecy atth e (date ifthe tra ns antion. In case of consideration received or paid in advance,the exclange rate prevailing on thc date of receipt or nayment oUadvance is considered whei subseauicily the rented assetis given ap or received to the extent of advanee consideration.

/At the end of the reporting period:

1. Foreign currency monr^qa ry itnms are translated using the exchange rate for immediate delivery at the end o3 the reporting period;

2. Non-monutary items that are measured in terms o^q histotical cost in a foreign currency are translated usieg the exchange rate atthe date o. the tranaact^|on;and

3. hon-monetary items rhatare measured attairvalue in a foraige cufrency are translated using the exchange rates at the date when the fair value was measured.

Exchange difference arising on the settlement of monetary items or on translating monetary items at rates different from those eat which they were translated on initial recognition during the period or in previous financial statements are recognised in statement of profit and loss in the period in which theyarise.

(xxi) Goods & Service tax:

Goods and Service Tax credit on materials purchased for production / service availed for production / input service are taken into account at the time of purchase and GST credit on purchase of capital items wherever applicable are taken into account as and when the assets are acquired.

Goods and Service Tax credits so taken are utilized for payment of GST Liability on Sale of on goods. The unutilized GST crndit is carried forward in the books.

(xxii) Employee Benefits:

i. Short term employee benefits:

Short Term benefits are recognised as an expense at the undiscounted amounts in the Statement of Profit and Loss of the year in which the related service is rendered.

ii. Post employment benefits:

a) Defined contribution plan:

The Employee and Company make monthly fixed Contribution to Government oi India Empioyee''s Provident Fund equal to a specified percentage of the Cover employee''s salary, Provision for the same is made in the year in which service are render by employee.

b) Defined benefit plans:

The Liability for Gratuity to employees, which is a defined benefit plan, as at Balance Sheet date determined on the basis of actuarial Valuation based on Projected Unit Crept method is funded to a Gratuity fund administered by the trustees and managed by Life Insurance Corporation of India and the contribution thereof paid/payable is absorbed in the accounts.

The present value of the defined benefit obligations is determined by discounting tire estimated future cash flows by reference to market yields at the end of the reportine period on government bonds that have terms approximating to the terms of the related obligation. 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. This cost is includnd in employee benefit expenses in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income.^hhey areincluded in retained earnings in the statement of changes in equity and in balaace sheet. Changes in present value of the defined benefit obligation resulting from plan amendment or curtailments are recognized immediately in profit or loss as past: service cosh.

iii. Othee lone- term em ployee benefits:

Other long term employee benefits comprises of leave encashment towards un-availed leave and compensated absences, ehese are recognized based on the present value of defined obligation which is computed using the project unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. These are accounted either as current employee cost or included in cost of assets as permitted.

Remeasurement of leave encashment towards un-availed leave and compensated absences are recogn i zed in three sta teme nt of profit and loss except those included in cost of assets as permitted in the period which they occur.

(xxin) Earnings per Share

Basic earnings per share is calculated by dividing the profit or lons fotthe period attributable to the equity holders ofthe Company by the weighted average number of ordinary shares outstanding during the year. For the purpose of calcelating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average nnmber of⁷ shares outstanding during the period are adjusted for the effects of all dilutive pote ntial equity shares.

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Mar 31, 2018

1. Corporate Information

CIL Nova Petrochemicals Limited (referred to as ''the company'') is a leading in manufacturing POY, FDY, DT, D.TEX. The company has its registered office at 396(P)-395/4(P), Sarkhej Bavla Highway, Moraiya Village, Taluka-Sanand, Ahmedabad.-382210.

2. SIGNIFICANT ACCOUNTING POLICIES

(i) Basis of Accounting:

a) Statement of Compliance:

The financial statements have been prepared with all material aspect with Indian Accounting Standards (Ind As) notified under section 133 of the Companies Act, 2013 (the Act) read with the Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act.

The Financial Statements upto the year ended 31st March, 2017 were prepared in accordance with the Accounting Standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provision of the Act.

These Financial Statements are the first Financial Statements of the Company under Ind As 101 -"First Time adoption of Indian Accounting Standards". The date of transition to Ind As is 1st April, 2016. Please refer Note No. 46 for an explanation of the transition from previous GAAP to Ind As has affected the Company''s Financial Positions, Financial Performance and Cash Flow.

b) Basis of Preparation:

The financial statements have been prepared on accrual basis of accounting under historical cost convention in accordance with generally accepted accounting principles in India and the relevant provisions of the Companies Act, 2013 including Indian Accounting Standards notified there under, except for the following where the fair valuation have been carried out in accordance with the requirements of respective Ind As:

1. Investment in equity instruments;

2. Employee defined benefit plans-plan assets;

The Operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle. Accordingly, all assets and liabilities have been classified as current or non-current as per the Company''s operating cycle and other criteria set out in Ind AS 1-''Presentation of Financial Statements'' and Schedule III to the Companies Act, 2013.

(ii) Use of Estimates:

The preparation and presentation of financial statements are in conformity with the Ind As which required management to make estimates and assumptions that affect the reported amounts of assets and liabilities (including contingent liabilities) on the date of the financial statements and the reported amount of revenues and expenses during the reporting year.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Future results could differ due to these estimates and differences between the actual results and estimates are recognized in the year in which the results are known/materialized.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes:

Note 6- Current/ Deferred tax liabilities

Note 30- Measurement of defined benefit obligations

Note 9- Expected credit loss for receivables

Note 5- Fair valuation of investments

(iii) Property, Plant and Equipment & Depreciation:

a) Property Plant and Equipment:

Freehold land is carried at carrying value as on the date of transition which has been previously revalued based on the report issued by the registered valuer (refer Note no. 3 A). All other items of property, plant and equipment are stated at historical cost (net of recoverable taxes) less accumulated depreciation and impairment losses, if any. Historical cost includes expenditure that is directly attributable to getting the asset ready for intended use. Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, 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. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

The gain or loss arising on the disposal or retirement of an property, plant and equipment is determined as the difference between net disposal proceeds and the carrying amount of the asset and is recognised as income or expenses in the Statement of Profit and Loss in the year or disposal.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

b) Capital work in progress:

Capital work in progress is stated at cost, comprising direct cost, related incidental expenses, attributable borrowing cost and net of accumulated impairment losses, if any. All the direct expenditure related to implementation including incidental expenditure incurred during the period of implementation of a project, till it is commissioned, is accounted as Capital work in progress (CWIP) and after commissioning the same is transferred/allocated to the respective item of property, plant and equipment. Pre-operating costs, being indirect in nature, are expensed to the statement of profit and lossasand when incurred.

c) Transition to Ind As:

On transition to Ind AS, the company has elected to continue with the carrying value of all of its property, plant and equipment recognised as at 1 April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment. Please refer to Note no. 3A for details of the same.

d) Depreciation methods, estimated useful life and residual value:

Depreciation is provided for property, plant and equipment so as to expense the cost over their estimated useful lives based on evaluation. The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

Depreciation on Assets other than Electrical Installation and Plant and Machinery has been provided on "Straight Line Method" based on the useful life specified in Schedule II of the Companies Act, 2013. Depreciation on Electrical Installation has been provided on "Straight Line Method" by taking the total life of assets at 28 years based on internal technical evaluation. Depreciation on Plant and Machinery has been provided on "Written down Value Method" by taking the total life of assets at 28 years based on internal technical evaluation. However, land is not depreciated. The estimated useful lives are mentioned below:

Asset Class	Useful life (years)
Plant Buildings	30
Other Buildings- RCC Structure	60
Furniture and Fixtures	10
Electric Installation	28
Computer	3
Plants Machinery	28
Equipments	5
Vehicles	8

Depreciation is calculated on pro rata basis with reference to the date of addition/disposal. The residual values are not more than 5% of the original cost of asset. (iv) Intangible Assets and Amortisation:

a) Intangible Assets:

Intangible assets are measured on initial recognition at cost (net of recoverable taxes, if any). Subsequently, intangible assets are carried out at cost less any accumulated amortization and accumulated impairment losses, if any. The gain or loss arising on the disposal or retirement of an intangible asset is determined as the difference between net disposal proceeds and the carrying amount of the asset and is recognised as income or expenses in the Statement of Profit and Loss in the year or disposal.

b) Transition to Ind As:

On transition to Ind As, the company has elected to continue with the carrying value of all of its property, plant and equipment recognised as at 1 April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment. Please refer to Note no. 4 for details of the same.

c) Amortisation methods, estimated useful life and residual value:

Intangible assets are amortised on a straight line basis over their estimated useful lives based on underlying contracts where applicable. The useful lives of intangible assets are assessed as either finite or indefinite. The amortisation

period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. A rebuttable presumption that the useful life of an intangible asset will not exceed ten years from the date when the asset is available for use is considered by the management.

(v) Impairment of non- financial assets

The Company reviews the carrying amount of its Property, Plant and Equipment, including Capital Work in progress of a "Cash Generating Unit" (CGU) at the end of each reporting period to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the Cash Generating Unit to which the asset belongs.

Recoverable Amount is determined:

i) In case of individual asset, at higher of the fair value less cost to sell and value in use; and

ii) In case of cash generating unit (a company of assets that generates identified, independent cash flows), at the higher of the cash generating unit''s fair value less cost to sell and the value in use.

If the recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in the Statement of Profit and Loss.

(vi) Financial Instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

1. Financial Assets:

i. Initial recognition and measurement:

At initial recognition, the Company measures a financial asset (which are not measured at fair value through profit or loss) at its fair value plus or minus transaction costs that are directly attributable to the acquisition or issue of the financial asset. ii. Subsequent measurement:

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

i) Financial assets measured at amortised cost;

ii) Financial assets at fair value through profit or loss (FVTPL) and

iii) Financial assets at fair value through other comprehensive income (FVOCI)

The Company classifies its financial assets in the above mentioned categories based on:

a) The Company''s business model for managing the financial assets, and

b) The contractual cash flows characteristics of the financial asset. i) Financial assets measured at amortised cost:

A financial asset is measured at amortised cost if both of the following conditions are met:

a) A financial asset is measured at amortised cost if the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and the Contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

b) Financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss.

ii) Financial assets at fair value through profit or loss (FVTPL):

Financial assets are measured at fair value through profit and loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognized in profit or loss.

iii) Financial assets at fair value through other comprehensive income (FVOCI):

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business model whose objective is achieved by collecting both contractual cash flows that gives rise on specified dates to solely payments of principal and interest on the principal amount outstanding and by selling financial assets.

In addition. The Company may elect to designate a financial asset, which otherwise meets amortised cost or FVOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ''accounting mismatch'')

iii. Equity Instruments:

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS 103 applies are classified as at FVTPL. For all other equity instruments, the company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The company makes such election on an instrument by-instrument basis. The classification is made on initial recognition and is irrevocable. If the company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the company may transfer the cumulative gain or loss within equity. Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Profit & Loss. The company has elected to measure its equity instruments through FVPTL. iv. Derecognition:

The Company derecognizes a financial asset when contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. On derecognition of a financial asset in its entirety, the difference between the assets''s carrying amount and the sum of the consideration received and receivable is recognized in the Statement of Profit and Loss. v. Impairment of financial assets:

The company assesses at each date of statement of financial position whether a financial assets or group of financial assets is impaired. In accordance of Ind AS 109, the company applies expected credit loss (ECL) model for measurement and recognition of impairment loss.

In case of trade receivables, the Company follows a simplified approach wherein an amount equal to lifetime ECL is measured and recognised as loss allowance. As a practical expedient, the company uses a provision matrix to determine impairment loss on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of trade receivables. ECL impairment loss allowances (or reversal) recognized during the period is recognized as an expense/ income respectively in the statement of profit and loss. Provision for ECL is presented as deduction from carrying amount of trade receivables.

For all other financial assets, expected credit losses are measured at an amount equal to 12 month expected credit losses or at an amount equal to lifetime expected losses, if the credit risk on the financial asset has increased significantly since initial recognition.

Subsequently, if the credit quality of the financial asset improves such that there is no longer a significant increase in credit risk since initial recognition, the Company reverts to recognizing impairment loss allowance based on 12 month ECL. 2. Financial Liabilities:

i. Initial recognition and measurement:

All financial liabilities are recognised initially at fair value and subsequently all financial liabilities carried at amortised cost or fair value through profit or loss. ii. Subsequent measurement:

The measurement of financial liabilities depends on their classification, as described below: i) Financial liabilities measured at amortised cost. ii) Financial liabilities at fair value through profit or loss. i) Financial liabilities measured at amortised cost:

Subsequently, all financial liabilities are measured at amortised cost. Any discount or premium on redemption/ settlement is recognised in the Statement of Profit and Loss as finance cost over the life of the liability using the effective interest method and adjusted to the liability figure disclosed in the Balance Sheet. ii) Financial assets at fair value through profit or loss (FVTPL):

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to P&L. However, the company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit and loss. iii. Derecognition:

Financial liabilities are derecognised when the liability is extinguished, that is, when the contractual obligation is discharged or cancelled or expiry. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss. (vii) Off-setting of financial instruments:

Financial assets and financial liabilities are offset and the net amount is reported in the standalone balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously. (viii) Fair value measurement:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions.

The Company categorizes assets and liabilities measured at fair value into one of three levels depending on the ability to observe inputs employed in their measurement which are described as follows:

(a) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

(b) Level 2 inputs are inputs that are observable, either directly or indirectly, other than quoted prices included within level 1 for the asset or liability.

(c) Level 3 inputs are unobservable inputs for the asset or liability reflecting significant modifications to observable related market data or Company''s assumptions about pricing by market participants.

(ix) Inventories:

Inventories are valued at lower of cost and net realizable value. Cost in respect of raw materials, stores, spares, fuel and packing material are determined on FIFO basis. Costs in respect of finished goods and work-in-progress are also computed on FIFO basis. Net realizable value is the estimated selling price in the ordinary course of business less estimated cost necessary to make sale.

Finished goods and process stock include cost of conversion and other costs incurred in acquiring the inventory and bringing them to their present location and condition.

Spares (not meeting the definition of property, plant and equipment) are accounted as inventory and expensed to the statement of profit and loss when issued for consumption.

(x) Borrowing Cost:

Borrowing costs include interest and amortisation of ancillary costs incurred to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction/development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

(xi) Cash and cash equivalents:

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with anoriginal maturity of three months or less from the date of acquisition), which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the company''s cash management.

(xi i) Statement of Cash flows:

Cash flows are reported using the indirect method, whereby profit/ (loss) before tax is adjusted for the effects of transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

(xiii) Revenue recognition:

Sales are accounted on transfer of significant risks and rewards of ownership to the buyer which generally coincides with dispatch of products to customers in case of domestic sales and on the basis of bill of lading in the case of export sales. Sales are accounted inclusive of excise duty but net of VAT/GST, Discounts and Returns as applicable.

Exports Incentives are treated as income in the year of Exports based on eligibility and when there is reasonable certainty regarding the receiving the same.

Dividend income from investments is recognized when the Company''s right to receive payment has been established, which is generally when shareholders approve the dividend.

Interest income from financial asset is recognized when it is probable that the economic benefit will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash flows through the expected life of the financial asset to that asset''s gross carrying amount on initial recognition.

(xiv) Dividend:

The Company recognises a liability for dividends to equity holders of the Company when the dividend is approved by the shareholders. A corresponding amount is recognized directly in equity. (xv) Foreign Currency Transactions:

The functional currency of the Company is Indian Rupees which represents the currency of the primary economic environment in which it operates.

Transactions in currencies other than the Company''s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated using mean exchange rate prevailing on the last day of the reporting period.

Exchange differences on monetary items are recognised in the Statement of Profit and Loss in the period in which they arise.

(xvi) Excise Duty/Service Tax/VAT & GST:

CENVAT/Service Tax/ VAT/GST credit on materials purchased for production / service availed for production / input service are taken into account at the time of purchase and CENVAT/Service Tax/VAT/GST credit on purchase of capital items wherever applicable are taken into account as and when the assets are acquired.

The CENVAT/GST credits so taken are utilized for payment of excise duty/GST on goods manufactured. The unutilized CENVAT/GST credit is carried forward in the books. The VAT/GST credits so taken are utilized for payment of tax on goods sold. The unutilized VAT/GST credit is carried forward in the books.

(xvii) Employee Benefits: i. Short term employee benefits:

Short Term benefits are recognised as an expense at the undiscounted amounts in the Statement of Profit and Loss of the year in which the related service is rendered. ii. Post employment benefits:

a) Defined contribution plan:

The Employee and Company make monthly fixed Contribution to Government of India Employee''s Provident Fund equal to a specified percentage of the Cover employee''s salary. Provision for the same is made in the year in which service are render by employee.

b) Defined benefit plans:

The Liability for Gratuity to employees, which is a defined benefit plan, as at Balance Sheet date determined on the basis of actuarial Valuation based on Projected Unit Credit method is funded to a Gratuity fund administered by the trustees and managed by Life Insurance Corporation of India and the contribution thereof paid/payable is absorbed in the accounts.

The present value of the defined benefit obligations is determined by discounting the estimated future cash flows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation. 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. This cost is included in employee benefit expenses in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in balance sheet. Changes in present value of the defined benefit obligation resulting from plan amendment or curtailments are recognized immediately in profit or loss as past service cost. iii. Other long term employee benefits:

Other long term employee benefits comprises of leave encashment towards un-availed leave and compensated absences, these are recognized based on the present value of defined obligation which is computed using the project unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. These are accounted either as current employee cost or included in cost of assets as permitted.

Remeasurement of leave encashment towards un-availed leave and compensated absences are recognized in the statement of profit and loss except those included in cost of assets as permitted in the period which they occur.

(xviii) Earnings per Share

Basic earnings per share is calculated by dividing net profit after tax for the year attributable to Equity Shareholders of the company by the weighted average number of Equity Shares issued during the year. Diluted earnings per share is calculated by dividing net profit attributable to equity Shareholders (after adjustment for diluted earnings) by average number of weighted equity shares outstanding during the year.

(xix) Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised when the Company has a present obligation as a result of a 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. Contingent liability is disclosed for (i) Possible obligation which will be confirmed only by future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. Contingent assets are not recognised in the financial statements.

(xx) Taxes on Income:

a) Current tax:

Current Tax is determined on income for the year chargeable to tax in accordance on the basis of the tax laws enacted or substantively enacted at the end of the reporting period. Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

b) Deferred tax:

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be utilized.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liability. Accordingly, MAT is recognised as deferred tax asset in the balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with asset will be realised. Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. (xxi) Segment reporting:

The Chief Operational Decision Maker (CODM) monitors the operating results of its business Segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Operating segments are reported in a manner consistent with the internal reporting to the CODM.

Accordingly, the Board of Directors of the Company is CODM for the purpose of segment reporting. Refer note 38 for segment information presented. (xxii) Leases:

a) Finance leases:

Assets acquired under lease where the Company has substantially all the risk and rewards of ownership are classified as finance leases. Such assets are capitalised at inception of lease at the lower of fair value or present value of minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each period.

b) Operating leases:

Assets acquired on leases where a significant portion of the risk and rewards of ownership are retained by the lessor are classified as operating leases. Lease rentals are charged to the statement of profit and loss on accrual basis.

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Mar 31, 2016

a. Basis of Preparation of financial Statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"), as applicable. The financial statements have been prepared as a going concern on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b. Use of estimates

In preparing the Company''s financial statements in conformity with the accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

c. Fixed Assets

Fixed Assets are stated at cost, net of Cenvat, less accumulated depreciation. All costs, including financial costs till commencement of commercial production are capitalized to the cost of qualifying assets. CENVAT credits on capital goods are accounted for by reducing the cost of capital goods.

When assets are disposed or retired, their cost is removed from the financial statements. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between sales proceeds and the carrying amount of the asset and is recognized in Statement of Profit and Loss for the relevant financial year.

d. Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization. All costs, including financing costs in respect of qualifying assets till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.

Intangible assets are amortized on a straight - line basis over their estimated useful lives. A rebuttable presumption that the useful life of an intangible asset will not exceed ten years from the date when the asset is available for use is considered by the management.

The gain or loss arising on the disposal or retirement of an intangible asset is determined as the difference between net disposal proceeds and the carrying amount of the asset and is recognized as income or expenses in the Statement of Profit and Loss in the year or disposal.

e. Depreciation

Depreciation on Fixed Assets other than Electrical Installation and Plant and Machinery has been provided on "Straight Line Method" at the rates provided in Schedule II of the Companies Act, 2013. Depreciation on Electrical Installation has been provided on "Straight Line Method" by taking the total life of assets at 28 years based on internal technical evaluation. Depreciation on Plant and Machinery has been provided on "Written down Value Method" by taking the total life of assets at 28 years based on internal technical evaluation.

When assets are disposed or retired, their cost is removed from the financial statements. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between sales proceeds and the carrying amount of the asset and is recognized in Statement of Profit and Loss for the relevant financial year.

f. Inventories

Inventories at year-end are valued at the lower of cost or net realizable value. The basis of determining the cost for various categories of inventories is as follows:

(i) In case of Raw Materials, Stores, Spares, Fuel and Packing Materials on FIFO basis.

(ii) In case of Finished Goods and Work-In-Progress on FIFO basis.

g. Foreign Currency Transactions

Transactions denominated in Foreign Currency are normally recorded at the exchange rate prevailing at the time of transaction. Monetary items denominated in foreign currencies at the year are translated at the rate prevailing on the date of Balance Sheet. Exchange differences are dealt with in the Profit & Loss account.

h. Sales

Sales are accounted for on dispatch of goods to the customers and are inclusive of Excise Duty and Sales Tax but net of sales returns and trade discounts.

i. Investments

Non-Current Investments are stated at its cost. Provision is made for any diminution in the value of the Long Term Investments, if such decline is other than temporary.

j. Borrowing Cost

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets, till such assets are ready for their intended use. A qualifying asset is the one which necessarily takes substantial period to get ready for intended use. All other borrowing costs are charged to revenue. Capitalization of borrowing cost is suspended when active development is interrupted.

k. Leases

Where the Company is the lessee

Leases, wherein the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.

Where the Company Is the lessor

Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Assets subject to operating leases are included in fixed assets. Lease income is recognized in the statement of profit and loss on a straight-line basis over the lease term. Costs, including depreciation are recognized as an expense in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss.

l. Taxation

i) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961.

ii) Deferred Tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or subsequently enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is virtual certainty that the assets will be realized in future.

m. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes to accounts. Contingent Assets are neither recognized nor disclosed in the financial statement.

n. Impairment of Assets

The Management Periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. If an asset is impaired, the company recognizes an impairment loss as the excess of the carrying amount of the asset over the recoverable amount. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amounts.

o. Earnings Per Share

Basic earnings per share is calculated by dividing net profit after tax for the year attributable to equity share holders of the company by the weighted average number of equity shares issued during the year. Diluted earnings per share is calculated by dividing net profit attributable to equity share holders (after adjustment for diluted earnings) by average number of weighted equity shares outstanding during the year.

p. Employee Benefits

(i) The employee and Company make monthly fixed Contribution to Government of India Employee''s Provident fund equal to a specified percentage of the covered employee''s salary, Provision for the same is made in the year in which service are rendered by the employees.

(ii) The Liability for Gratuity to employee, which is a defined benefit plan, is determined on the basis of actuarial Valuation based on Projected Unit Credit method. Actuarial gain/Loss in respect of the same is charged to the profit and loss account.

(iii) Leave encashment benefit to eligible employee has been ascertained on actuarial basis and provided for. Actuarial gain/loss in respect of the same is charged to the profit and loss account.

(iv) Short Term benefits are recognized as an expense at the undiscounted amounts in the Statement of Profit and Loss of the year in which the related service is rendered.

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Mar 31, 2015

A. Basis of Preparation of financial Statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"), as applicable. The financial statements have been prepared as a going concern on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b. Use of estimates

In preparing the Company's financial statements in conformity with the accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

c. Fixed Assets

Fixed Assets are stated at cost, net of Cenvat, less accumulated depreciation. All costs, including financial costs till commencement of commercial production are capitalized to the cost of qualifying assets. CENVAT credits on capital goods are accounted for by reducing the cost of capital goods.

When assets are disposed or retired, their cost is removed from the financial statements. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between sales proceeds and the carrying amount of the asset and is recognised in Statement of Profit and Loss for the relevant financial year.

d. Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization. All costs, including financing costs in respect of qualifying assets till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.

Intangible assets are amortized on a straight - line basis over their estimated useful lives. A rebuttable presumption that the useful life of an intangible asset will not exceed ten years from the date when the asset is available for use is considered by the management.

The gain or loss arising on the disposal or retirement of an intangible asset is determined as the difference between net disposal proceeds and the carrying amount of the asset and is recognised as income or expenses in the Statement of Profit and Loss in the year or disposal.

e. Depreciation

Depreciation on Fixed Assets other than Electrical Installation and Plant and Machinery has been provided on "Straight Line Method" at the rates provided in Schedule II of the Companies Act, 2013. Depreciation on Electrical Installation has been provided on "Straight Line Method" by taking the total life of assets at 28 years based on internal technical evaluation. Depreciation on Plant and Machinery has been provided on "Written down Value Method" by taking the total life of assets at 28 years based on internal technical evaluation.

When assets are disposed or retired, their cost is removed from the financial statements. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between sales proceeds and the carrying amount of the asset and is recognised in Statement of Profit and Loss for the relevant financial year.

f. Inventories

Inventories at year-end are valued at the lower of cost or net realizable value. The basis of determining the cost for various categories of inventories is as follows:

(i) In case of Raw Materials, Stores, Spares, Fuel and Packing Materials on FIFO basis.

(ii) In case of Finished Goods and Work-In-Progress on FIFO basis.

g. Foreign Currency Transactions

Transactions denominated in Foreign Currency are normally recorded at the exchange rate prevailing at the time of transaction. Monetary items denominated in foreign currencies at the year are translated at the rate prevailing on the date of Balance Sheet. Exchange differences are dealt with in the Profit & Loss account.

h. Sales

Sales are accounted for on dispatch of goods to the customers and are inclusive of Excise Duty and Sales Tax but net of sales returns and trade discounts.

i. Investments

Non-Current Investments are stated at its cost. Provision is made for any diminution in the value of the Long Term Investments, if such decline is other than temporary.

j. Borrowing Cost

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets, till such assets are ready for their intended use. A qualifying asset is the one which necessarily takes substantial period to get ready for intended use. All other borrowing costs are charged to revenue. Capitalization of borrowing cost is suspended when active development is interrupted.

k. Leases

Where the Company is the lessee

Leases, wherein the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.

Where the Company Is the lessor

Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Assets subject to operating leases are included in fixed assets. Lease income is recognized in the statement of profit and loss on a straight-line basis over the lease term. Costs, including depreciation are recognized as an expense in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss.

l. Taxation

i) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961.

ii) Deferred Tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or subsequently enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is virtual certainty that the assets will be realized in future.

m. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes to accounts. Contingent Assets are neither recognized nor disclosed in the financial statement.

n. Impairment of Assets

The Management Periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. If an asset is impaired, the company recognizes an impairment loss as the excess of the carrying amount of the asset over the recoverable amount. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amounts.

o. Earning Per Share

Basic earning per share is calculated by dividing net profit after tax for the year attributable to equity share holders of the company by the weighted average number of equity shares issued during the year. Diluted earning per share is calculated by dividing net profit attributable to equity share holders (after adjustment for diluted earnings) by average number of weighted equity shares outstanding during the year.

p. Employee Benefits

(i) The employee and Company make monthly fixed Contribution to Government of India Employee's Provident fund equal to a specified percentage of the covered employee's salary, Provision for the same is made in the year in which service are rendered by the employees.

(ii) The Liability for Gratuity to employee, which is a defined benefit plan, is determined on the basis of actuarial Valuation based on Projected Unit Credit method. Actuarial gain/Loss in respect of the same is charged to the profit and loss account.

(iii) Leave encashment benefit to eligible employee has been ascertained on actuarial basis and provided for. Actuarial gain/loss in respect of the same is charged to the profit and loss account.

(iv) Short Term benefits are recognised as an expense at the undiscounted amounts in the Statement of Profit and Loss of the year in which the related service is rendered.

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Mar 31, 2014

A. Basis of Preparation of financial Statements

The financial statements have been prepared to comply with the Accounting Standards referred to in the Companies (Accounting Standards) Rule, 2006 issued by the Central Government in exercise of the power conferred under sub-section ( I ) (a) of section 642 and the relevant provisions of the Companies Act, 1956 (the ''Act''). The accounts are prepared on historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

b. Use of estimates

In preparing the Company''s financial statements in conformity with the accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

c. Fixed Assets

Fixed Assets are stated at cost, net of Cenvat, less accumulated depreciation. All costs, including financial costs till commencement of commercial production are capitalized to the cost of qualifying assets. CENVAT credits on capital goods are accounted for by reducing the cost of capital goods.

When assets are disposed or retired, their cost is removed from the financial statements. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between sales proceeds and the carrying amount of the asset and is recognised in Statement of Profit and Loss for the relevant financial year.

d. Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization. All costs, including financing costs in respect of qualifying assets till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.

Intangible assets are amortized on a straight - line basis over their estimated useful lives. A rebuttable presumption that the useful life of an intangible asset will not exceed ten years from the date when the asset is available for use is considered by the management.

The gain or loss arising on the disposal or retirement of an intangible asset is determined as the difference between net disposal proceeds and the carrying amount of the asset and is recognised as income or expenses in the Statement of Profit and Loss in the year or disposal.

e. Depreciation

Depreciation on Fixed Assets other than Plant and Machinery has been provided on "Straight Line Method" at the rates provided in Schedule XIV to the Companies Act, 1956. Depreciation on Plant and Machinery has been provided on "Written down Value Method" at the rates provided in Schedule XIV to the Companies Act, 1956.

When assets are disposed or retired, their cost is removed from the financial statements. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between sales proceeds and the carrying amount of the asset and is recognised in Statement of Profit and Loss for the relevant financial year.

f. Inventories

Inventories at year-end are valued at the lower of cost or net realizable value. The basis of determining the cost for various categories of inventories is as follows:

(i) In case of Raw Materials, Stores, Spares, Fuel and Packing Materials on FIFO basis.

(ii) In case of Finished Goods and Work-In-Progress on FIFO basis.

g. Foreign Currency Transactions

Transactions denominated in Foreign Currency are normally recorded at the exchange rate prevailing at the time of transaction. Monetary items denominated in foreign currencies at the year are translated at the rate prevailing on the date of Balance Sheet. Exchange differences are dealt with in the Profit & Loss account.

h. Sales

Sales are accounted for on dispatch of goods to the customers and are inclusive of Excise Duty and Sales Tax but net of sales returns and trade discounts.

i. Investments

Non-Current Investments are stated at its cost. Provision is made for any diminution in the value of the Long Term Investments, if such decline is other than temporary.

j. Borrowing Cost

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets, till such assets are ready for their intended use. A qualifying asset is the one which necessarily takes substantial period to get ready for intended use. All other borrowing costs are charged to revenue. Capitalization of borrowing cost is suspended when active development is interrupted.

k. Leases

Where the Company is the Lessee

Leases, wherein the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.

Where the Company is the Lessor

Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Assets subject to operating leases are included in fixed assets. Lease income is recognized in the statement of profit and loss on a straight-line basis over the lease term. Costs, including depreciation are recognized as an expense in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss.

L. Taxation

i) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961.

ii) Deferred Tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or subsequently enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is virtual certainty that the assets will be realized in future.

m. Provisions, Contingent LiabiLities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes to accounts. Contingent Assets are neither recognized nor disclosed in the financial statement.

n. Impairment of Assets

The Management Periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. If an asset is impaired, the company recognizes an impairment loss as the excess of the carrying amount of the asset over the recoverable amount. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amounts.

o. Earning Per Share

Basic earning per share is calculated by dividing net profit after tax for the year attributable to equity share holders of the company by the weighted average number of equity shares issued during the year. Diluted earning per share is calculated by dividing net profit attributable to equity share holders (after adjustment for diluted earnings) by average number of weighted equity shares outstanding during the year.

p. EmpLoyee Benefits

(i) The employee and Company make monthly fixed Contribution to Government of India Employee''s Provident fund equal to a specified percentage of the covered employee''s salary, Provision for the same is made in the year in which service are rendered by the employees.

(ii) The Liability for Gratuity to employee, which is a defined benefit plan, is determined on the basis of actuarial Valuation based on Projected Unit Credit method. Actuarial gain/Loss in respect of the same is charged to the profit and loss account.

(iii) Leave encashment benefit to eligible employee has been ascertained on actuarial basis and provided for. Actuarial gain/loss in respect of the same is charged to the profit and loss account.

(iv) Short Term benefits are recognised as an expense at the undiscounted amounts in the Statement of Profit and Loss of the year in which the related service is rendered.

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Mar 31, 2013

A. Basis of Preparation of financial Statements

The financial statements have been prepared to comply with the Accounting Standards referred to in the Companies (Accounting Standards) Rule, 2006 issued by the Central Government in exercise of the power conferred under sub-section ( I ) (a) of section 642 and the relevant provisions of the Companies Act, 1956 (the ''Act''). The accounts are prepared on historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

b. Use of estimates

In preparing the Company''s financial statements in conformity with the accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

c. Fixed Assets

Fixed Assets are stated at cost, net of Cenvat, less accumulated depreciation. All costs, including financial costs till commencement of commercial production are capitalized to the cost of qualifying assets. CENVAT credits on capital goods are accounted for by reducing the cost of capital goods.

When assets are disposed or retired, their cost is removed from the financial statements. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between sales proceeds and the carrying amount of the asset and is recognized in Statement of Profit and Loss for the relevant financial year.

d. Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization. All costs, including financing costs in respect of qualifying assets till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.

Intangible assets are amortized on a straight - line basis over their estimated useful lives. A rebuttable presumption that the useful life of an intangible asset will not exceed ten years from the date when the asset is available for use is considered by the management.

The gain or loss arising on the disposal or retirement of an intangible asset is determined as the difference between net disposal proceeds and the carrying amount of the asset and is recognized as income or expenses in the Statement of Profit and Loss in the year or disposal.

e. Depreciation

Depreciation on Fixed Assets other than Plant and Machinery has been provided on "Straight Line Method" at the rates provided in Schedule XIV to the Companies Act, 1956. Depreciation on Plant and Machinery has been provided on "Written down Value Method" at the rates provided in Schedule XIV to the Companies Act, 1956.

When assets are disposed or retired, their cost is removed from the financial statements. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between sales proceeds and the carrying amount of the asset and is recognized in Statement of Profit and Loss for the relevant financial year.

f. Inventories

Inventories at year-end are valued at the lower of cost or net realizable value. The basis of determining the cost for various categories of inventories is as follows:

(i) In case of Raw Materials, Stores, Spares, Fuel and Packing Materials on FIFO basis.

(ii) In case of Finished Goods and Work-In-Progress on FIFO basis.

g. Foreign Currency Transactions

Transactions denominated in Foreign Currency are normally recorded at the exchange rate prevailing at the time of transaction. Monetary items denominated in foreign currencies at the year are translated at the rate prevailing on the date of Balance Sheet. Exchange differences are dealt with in the Profit & Loss account.

h. Sales

Sales are accounted for on dispatch of goods to the customers and are inclusive of Excise Duty and Sales Tax but net of sales returns and trade discounts.

i. Investments

Non-Current Investments are stated at its cost. Provision is made for any diminution in the value of the Long Term Investments, if such decline is other than temporary.

j. Borrowing Cost

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets, till such assets are ready for their intended use. A qualifying asset is the one which necessarily takes substantial period to get ready for intended use. All other borrowing costs are charged to revenue. Capitalization of borrowing cost is suspended when active development is interrupted.

k. Leases

Where the Company is the lessee

Leases, wherein the less or effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.

Where the Company is the less or

Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Assets subject to operating leases are included in fixed assets. Lease income is recognized in the statement of profit and loss on a straight-line basis over the lease term. Costs, including depreciation are recognized as an expense in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss.

l. Taxation

i) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961.

ii) Deferred Tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or subsequently enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is virtual certainty that the assets will be realized in future.

m. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes to accounts. Contingent Assets are neither recognized nor disclosed in the financial statement.

n. Impairment of Assets

The Management Periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. If an asset is impaired, the company recognizes an impairment loss as the excess of the carrying amount of the asset over the recoverable amount. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amounts.

o. Earnings Per Share

Basic earnings per share is calculated by dividing net profit after tax for the year attributable to equity share holders of the company by the weighted average number of equity shares issued during the year. Diluted earnings per share is calculated by dividing net profit attributable to equity share holders (after adjustment for diluted earnings) by average number of weighted equity shares outstanding during the year.

p. Employee Benefits

(i) The employee and Company make monthly fixed Contribution to Government of India Employee''s Provident fund equal to a specified percentage of the covered employee''s salary, Provision for the same is made in the year in which service are rendered by the employees.

(ii) The Liability for Gratuity to employee, which is a defined benefit plan, is determined on the basis of actuarial valuation based on Projected Unit Credit method. Actuarial gain/loss in respect of the same is charged to the profit and loss account.

(iii) Leave encashment benefit to eligible employee has been ascertained on actuarial basis and provided for. Actuarial gain/loss in respect of the same is charged to the profit and loss account.

(iv) Short Term benefits are recognized as an expense at the undiscounted amounts in the Statement of Profit and Loss of the year in which the related service is rendered.

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Mar 31, 2012

A. Basis of Preparation of financial Statements

The accounts are prepared on historical cost convention on an accrual basis and materially comply with the mandatory accounting standards issued by the Institute of Chartered Accountants of India.

b. Fixed Assets

Fixed Assets are stated at cost, net of Cenvat, less accumulated depreciation. All costs, including financial costs till commencement of commercial production.

c. Depreciation

Depreciation on Fixed Assets other than Plant and Machinery has been provided on "Straight Line Method" at the rates provided in Schedule XIV to the Companies Act, 1956. Depreciation on Plant and Machinery has been provided on "Written down Value Method" at the rates provided in Schedule XIV to the Companies Act, 1956.

d. Inventories

Inventories at year-end are valued at the lower of cost or net realizable value. The basis of determining the cost for various categories of inventories is as follows:

(i) In case of Raw Materials, Stores, Spares, Fuel and Packing Materials on FIFO basis.

(ii) In case of Finished Goods and Work-In-Progress on FIFO basis.

e. Foreign Currency Transactions

Transactions denominated in Foreign Currency are normally recorded at the exchange rate prevailing at the time of transaction. Monetary items denominated in foreign currencies at the year are translated at the rate prevailing on the date of Balance Sheet. Exchange differences are dealt with in the Profit & Loss account.

f. Sales

Sales are accounted for on dispatch of goods to the customers and are inclusive of Excise Duty and Sales Tax but net of sales returns and trade discounts.

g. Investments

Long Term Investments are stated at its cost.

h. Borrowing Cost

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. All other borrowing costs are charged to revenue.

i. Taxation

i) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961.

ii) Deferred Tax resulting from timing differences between book and tax profit is accounted for under the liability method, at the current rates of tax, to the extent that the timing differences are expected to crystallize.

j. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes to accounts. Contingent Assets are neither recognized nor disclosed in the financial statement.

k. Impairment of Assets

The Management Periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. If an asset is impaired, the company recognizes the an impairment loss as the excess of the carrying amount of the asset over the recoverable amount.

l. Earning Per Share

Basic earning per share is calculated by dividing net profit after tax for the year attributable to equity share holders of the company by the weighted average number of equity shares issued during the year. Diluted earning per share is calculated by dividing net profit attributable to equity share holders (after adjustment for diluted earnings) by average number of weighted equity shares outstanding during the year.

m. Employee Benefits

(i) The employee and Company make monthly fixed Contribution to Government of India EmployeeRss Provident fund equal to a specified percentage of the covered employeeRss salary, Provision for the same is made in the year in which service are rendered by the employees.

(ii) The Liability for Gratuity to employee, which is a defined benefit plan, is determined on the basis of actuarial Valuation based on Projected Unit Credit method. Actuarial gain/Loss in respect of the same is charged to the profit and loss account.

(iii) Leave encashment benefit to eligible employee has been ascertained on actuarial basis and provided for. Actuarial gain/loss in respect of the same is charged to the profit and loss account.

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Mar 31, 2011

A. Basis of Accounting

The accounts are prepared on historical cost convention on an accrual basis and materially complies with the mandatory accounting standards issued by the Institute of Chartered Accountants of India.

b. Fixed Assets

Fixed Assets are stated at cost, net of Cenvat, less accumulated depreciation. All costs, including financial costs till commencement of commercial production.

c. Depreciation

Depreciation on Fixed Assets other than Plant and Machinery has been provided on "Straight Line Method" at the rates provided in Schedule XIV to the Companies Act, 1956. Depreciation on Plant and Machinery has been provided on "Written down Value Method" at the rates provided in Schedule XIV to the Companies Act, 1956.

d. Inventories

Inventories at year-end are valued at the lower of cost or net realizable value. The basis of determining the cost for various categories of inventories is as follows:

(i) In case of Raw Materials, Stores, Spares, Fuel and Packing Materials on FIFO basis.

(ii) In case of Finished Goods and Work-in-Progress on FIFO basis.

e. Sales

Sales are accounted for on dispatch of goods to the customers and are inclusive of Excise Duty and Sales Tax but net of sales returns and trade discounts.

f. Investments

Long Term Investments are stated at its cost.

g. Borrowing Cost

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. All other borrowing costs are charged to revenue.

h. Taxation

i) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961.

ii) Deferred Tax resulting from timing differences between book and tax profit is accounted for under the liability method, at the current rates of tax, to the extent that the timing differences are expected to crystallize.

i. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes to accounts. Contingent Assets are neither recognized nor disclosed in the financial statement.

j. Impairment of Assets

The Management Periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. If an asset is impaired, the company recognizes the an impairment loss as the excess of the carrying amount of the asset over the recoverable amount.

k. Earning Per Share

Basic earning per share is calculated by dividing net profit after tax for the year attributable to equity share holders of the company by the weighted average number of equity shares issued during the year. Diluted earning per share is calculated by dividing net profit attributable to equity share holders (after adjustment for diluted earnings) by average number of weighted equity shares outstanding during the year.

l. Employee Benefits

(i) The employee and Company make monthly fixed Contribution to Government of India Employee's Provident fund equal to a specified percentage of the covered employee's salary, Provision for the same is made in the year in which service are rendered by the employees.

(ii) The Liability for Gratuity to employee, which is a defined benefit plan, is determined on the basis of actuarial Valuation based on Projected Unit Credit method. Actuarial gain/Loss in respect of the same is charged to the profit and loss account.

(iii) Leave encashment benefit to eligible employee has been ascertained on actuarial basis and provided for. Actuarial gain/loss in respect of the same is charged to the profit and loss account.

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Mar 31, 2010

A. Basis of Accounting

The accounts are prepared on historical cost convention on an accrual basis and materially complies with the mandatory accounting standards issued by the Institute of Chartered Accountants of India.

b. Fixed Assets

Fixed Assets are stated at cost, net of Cenvat, less accumulated depreciation. All costs, including financial costs till commencement of commercial production.

c. Depreciation

Depreciation on Fixed Assets other than Plant and Machinery has been provided on "Straight Line Method" at the rates provided in Schedule XIV to the Companies Act, 1956. Depreciation on Plant and Machinery has been provided on "Written down Value Method" at the rates provided in Schedule XIV to the Companies Act, 1956.

d. Inventories

Inventories at year-end are valued at the lower of cost and net realizable value. The basis of determining the cost for various categories of inventories is as follows:

(i) In case of Raw Materials, Stores, Spares, Fuel and Packing Materials on FIFO basis. (ii) In case of Finished Goods and Work-In-Progress on FIFO basis.

e. Foreign Currency Transactions

Transactions denominated in Foreign Currency are normally recorded at the exchange rate prevailing at the time of transaction. Monetary items denominated in foreign currencies at the year are translated at the rate prevailing on the date of Balance Sheet. Exchange differences are dealt with in the Profit & Loss account.

f. Sales

Sales are accounted for on dispatch of goods to the customers and are inclusive of Excise Duty and Sales Tax but net of sales returns and trade discounts.

g. Investments

Long Term Investments are stated at its cost.

h. Borrowing Cost

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. All other borrowing costs are charged to revenue.

i. Taxation

i) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961.

ii) Deferred Tax resulting from timing differences between book and tax profit is accounted for under the liability method, at the current rates of tax, to the extent that the timing differences are expected to crystallize.

j. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes to accounts. Contingent Assets are neither recognized nor disclosed in the financial statement.

k. Impairment of Assets

The Management Periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. If an asset is impaired, the company recognizes the an impairment loss as the excess of the carrying amount of the asset over the recoverable amount.

l. Earning Per Share

Basic earning per share is calculated by dividing net profit after tax for the year attributable to equity share holders of the company by the weighted average number of equity shares issued during the year. Diluted earning per share is calculated by dividing net profit attributable to equity share holders (after adjustment for diluted earnings) by average number of weighted equity shares outstanding during the year.

m. Employee Benefits

1. The employee and Company make monthly fixed Contribution to Government of India Employees Provident fund equal to a specified percentage of the covered employees salary, Provision for the same is made in the year in which service are rendered by the employees.

2. The Liability for Gratuity to employee, which is a defined benefit plan, is determined on the basis of actuarial Valuation based on Projected Unit Credit method. Actuarial gain/Loss in respect of the same is charged to the profit and loss account.

3. Leave encashment benefit to eligible employee has been ascertained on actuarial basis and provided for. Actuarial gain/loss in respect of the same is charged to the profit and loss account.

2. In terms of the scheme of arrangement under section 391 to 394 of the Companies Act,1956(“the Scheme”)between Nova Petrochemical Ltd and CIL-Nova Petrochemical Ltd (formerly known as Nova Poly Yarn Ltd),Nova Petrochemical re-organised and segregated by way of a demerger, its business inrespect of undertaking Unit II situated at Survey Number 391,395/4,396(Paiki) at Village Moraiya, Taluka Sanand, Dist. Ahmedabad engaged in yarn production & its allied activities to separate transferee company. All the assets and liabilities are transferred pursuant to approved order of the Honble High Court of Gujarat dated 27th August, 2009 and the appointed date as per the scheme is 1st April,2007.

As per the said scheme:

In consideration of the demerger, the company issued and allotted 2,70,00,000 equity shares amounting to Rs.13,50,00,000/- to the share holders of Nova Petrochemicals Ltd. in the ratio of one equity share of face value of Rs.5 each fully paid up in the company for every on equity share of Rs.10 each fully paid up held by the shareholders of Nova Petrochemicals Ltd.