Asian Fertilizers Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

Note 1:

A. CORPORATE INFORMATION

Asian Fertilizers Limited (“the Company”) is a public limited company with its registered office situated at Flat No. 202, Preet Garden 3A/172, Azad Nagar,

Kanpur - 208002 (Uttar Pradesh) was incorporated on January 06,1986.

The principal activity of the Company is the manufacturing of Fertilizers. The financial statements were approved for issue in accordance with aresolution of the directors on May 29, 2025.

B. MATERIAL ACCOUNTING POLICIES1. Statement of compliance

The financial statements have been prepared in accordance 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. In addition, the guidance notes/announcements issued by the Instituteof Chartered Accountants of India (ICAI) are also applied except where compliance with other statutory promulgations requires a different treatment.

2. Basis of preparation

The financial statements have been prepared on the historical cost convention on an accrual basis except for the following assets and liabilities which have been measured at fair value amount: i) Defined benefit plans

Historical cost is generally based on the fair value of the consideration given in exchange for goods or services.

Fair value is the price that would be received to sell an asset or paid totransfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique.

3. Operating Cycle for current and non-current classification

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

An asset is classified as current when it is:

a) expected to be realized or intended to be sold or consumed in the normal operating cycle,

b) held primarily for the purpose of trading,

c) expected to be realized within twelve months after the reporting period,or

d) cash or cash equivalents unless restricted from being exchanged or used

e) to settle a liability for at least twelve months after the reporting period.

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

when:

a) it is expected to be settled in the normal operating cycle,

b) it is held primarily for the purpose of trading,

c) it is due to be settled within twelve months after the reporting period, or

d) there is no unconditional right to defer settlement of the liability for atleast twelve months after the reporting period.

All other liabilities are classified as non-current.

The operating cycle of the Company, that is, the time between the acquisition of assets for processing and their realization in cash or cash equivalent is 12 months.

Deferred tax assets and liabilities are classified as non-current.

4. The company’s financial statements are presented in Indian Rupees, which is also its functional currency.

5. Critical estimate and Judgements

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates, and assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. Actual results could differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

The areas involving critical estimates or judgments are:

• Employee benefits (estimation of defined benefit obligation)

Post-employment benefits represent obligations that will be settled in the future and require assumptions to project benefit obligations. Post- employment benefit accounting is intended to reflect the recognition of future benefit costs over the employee’s approximate service period, based on the terms of the plans and the investment and funding decisions made. The accounting requires the Company to make assumptions regarding variables such as discount rate and salary growth rate. Changes in these key assumptions can have a significant impact on the defined benefit obligations.

• Estimation of expected useful lives of property, plant, and equipment Management reviews its estimate of the useful lives of property, plant, andequipment at each

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reporting date, based on the expected utility of theassets. Uncertainties in these estimates relate to technical and economicobsolescence that may change the utility of property, plant, and equipment.

• Contingencies

Legal proceedings covering a range of matters are pending against the Company. Due to the uncertainty inherent in such matters, it is often difficult to predict the final outcome. The cases and claims against the Company often raise difficult and complex factual and legal issues that are subject to many uncertainties and complexities, including but not limited to the facts and circumstances of each particular case/claim, the jurisdiction and thedifferences in applicable law. In the normal course of business, the Company consults with legal counsel and other experts on matters related to litigations. The Company accrues a liability when it is determined that an adverse outcome is probable and the amount of the loss can be reasonably estimated. In the event an adverse outcome is possible or an estimate is not determinable, the matter is disclosed.

• ¦ Valuation of deferred tax assets

Deferred income tax expense is calculated based on the differences between the carrying value of assets and liabilities for financial reporting purposes and their respective tax bases that are considered temporary innature. The valuation of deferred tax assets is dependent on management’s assessment of the future recoverability of the deferred benefit.

Expected recoverability may result from expected taxable income in the future, planned transactions, or planned optimizing measures. Economic conditions may change and lead to a different conclusion regarding recoverability.

• Fair value measurements

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair values are measured using valuation techniques, including the market multiples model (Market Approach) and Capitalisation method(Income Approach) which involve various judgments and assumptions.

• impairment of Property, plant and equipment, Right-of-use assets, intangible assets (other than goodwill), and Capital work-in-progress

The Company estimates the value in use of the cash-generating unit (CGU) based on future cash flows after considering current economic conditions and trends,

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estimated future operating results and growth rates and anticipated future economic and regulatory conditions. The estimated cash flows are developed using internal forecasts. The cash flows are discounted using a suitable discount rate in order to calculate the present value.

For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets.

Revisions to accounting estimates are recognized prospectively in the period in which the estimate is revised if the revision affects only that period; they are recognized in the period of the revision and future periods if the revision affects both current and future periods.

6. Property, plant, and equipment (PPE)

Property, plant, and equipment are stated at cost, net of recoverable taxes, trade discounts, and rebates less accumulated depreciation and impairment losses, if any. Such cost includes purchase price, borrowing cost, and any cost directly attributable to bringing the assets to their working condition for its intended use, net charges on foreign exchange contracts, and adjustments arising from exchange rate variations attributable to the assets.

Subsequent costs are included in the asset’s carrying amount or recognized as separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.

Assets are classified into the appropriate categories of property, plant, and equipment when completed and ready for intended use.

Expenses incurred relating to the project, including borrowing cost and net income earned during the project development stage prior to its intended use, are considered as pre-operative expenses and disclosed under Capital Work - in - Progress.

Spare parts are capitalized when they meet the definition of PPE, i.e.,when the Company intends to use these during more than a period of 12 months.

7. Investment property

Property that is held for long-term rental yields or for capital appreciation orboth, and that is not occupied by the Company, is classified as investment property. Property, plant, and equipment are stated at cost, net of recoverable taxes, trade discounts, and rebates less accumulated depreciation and impairment losses, if any. For this purpose, cost includes deemed cost which represents the carrying value of property, plant, and equipment recognized on 1st April 2016 measured as per the previous GAAP. Such cost includes purchase price, borrowing cost, and any cost directly attributable to bringing the assets to its working condition for its intended use, net charges on foreign exchange contracts, and adjustments arising from exchange rate variations attributable to the assets.

An item of property, plant, and equipment or any significant part initially recognized of such item of property plant and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on the derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is unrecognized.

8. Depreciation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Depreciation has been provided on such cost of assets less their residual values on straight line method on the basis of estimated useful life of assets as prescribed in Schedule II of the Act.

Freehold land is not depreciated/amortized.

Assets held under financial leases are depreciated over their expected usefullives on the same basis as owned assets or, wherever shorter, the term of therelevant lease. Depreciation is calculated on a pro-rata basis except that, assets costing up to Rs. 5,000 each are fully depreciated in the year of purchase.

The estimated useful lives and methods of depreciation of property, plant, and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

9. Intangible Assets

Intangible Assets are stated at the cost of acquisition net of recoverable taxes, trade discount, and rebates less accumulated amortization/depletion and impairment loss, if any. Such cost includes purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use, net charges on foreign exchange contracts, and adjustments arising from exchange rate variations attributable to the intangible assets.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.

Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses, if any.

Gains or losses arising from the derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the Statement of Profit and Loss when the asset is derecognized.

Intangible assets being computer software are amortised on a straight line method over the period of five years.

10. Impairment of tangible and intangible assets other than goodwill

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of disposaland its value in use.

Impairment loss is recognized when the carrying amount of an asset exceeds recoverable amount.

For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased.

If such indication exists, the Company estimates the asset’s or CGU’s recoverable amount. A previously recognised impairment loss is reversed. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.

11. LeasesCompany as a Lessee

The Company assesses whether a contract contains a lease, at the inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a defined period of time inexchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use ofthe asset.

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

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the usefullife of the right-of-use asset or the end of the lease term.

The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. For leases with reasonably similar

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characteristics, the Company, on a lease-by-lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole.

Lease payments included in the measurement of the lease liability comprise the fixed payments, including in-substance fixed payments and lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option;

The lease liability is measured at amortized cost using the effective interest method.

The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and

leases of low-value assets. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

The Company applied a single discount rate to a portfolio of leases of similar assets in a similar economic environment with a similar end date.

Company as a Lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Where the Company is a lessor under an operating lease, the asset is capitalized within property, plant, and equipment and depreciated over its useful economic life. Payments received under operating leases are recognized in the Statement of Profit and Loss on a straight-line basis over the term of the lease.

12. Inventories

Inventories are valued at cost or net realizable value, whichever is lower. The basis for determining the cost for various categories of inventory are as follows:

(a) Raw materials, Chemicals, Components, stores & spares, and Stock in Trade - Cost includes the cost of purchase (Net of recoverable taxes) and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on a FIFO basis.

(b) Stock in process and finished goods- Direct cost plus an appropriate share

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of overheads.

(c) Saleable Scrap/Waste/By-products - At estimated realizable value.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

13. Foreign Currencies

a) Functional and presentation currency

Items included in the financial statements are measured using the currencyof the primary economic environment in which the entity operates (‘the functional currency’). The financial statements are presented in Indian Rupee (INR/Rupees), which is the Company’s functional and presentation currency.

b) Transaction and balances

Transactions in foreign currencies are recorded on initial recognition at the exchange rate prevailing on the date of the transaction.

Any gains or losses arising due to differences in exchange rates at the time of translation or settlement are accounted for in the Statement of Profit & Loss either under the head foreign exchange fluctuation or interest cost, as the case may be, except those relating to long-term foreign currency monetary items.

14. Investment in Subsidiaries and Associates

Investments in subsidiaries, associates, and other related parties are carried at cost less accumulated impairment, if any.

15. 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. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market which can be accessed by the Company for the asset or liability.

The fair value of an asset or a liability is measured using the assumptions thatmarket participants would use when pricing the asset or liability, assuming that market

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participants act in their economic best interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 Quoted (unadjusted) market prices in active markets for identicalassets or liabilities

• Level 2 Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

• Level 3 Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

16. Financial Assets Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent measurement

Subsequent measurement is determined with reference to the classification of the respective financial assets. Based on the business model for managing the financial assets and the contractual cash flow characteristics of the financial asset, the

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Company classifies financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit and loss.

Debt instruments at amortized cost

Debt instruments such as trade and other receivables, security deposits, and loans given are measured at the amortized cost if both the following conditions are met:

• -The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the profit or loss. The losses arising from impairment are recognized in the profit or loss.

Equity investments

All equity investments in the scope of Ind-AS 109 are measured at fair value. Equity instruments that are held for trading are classified as at FVTPL. For all other equity instruments, the company decides to classify the same either as at FVTOCI or FVTPL. The company makes such an election on an instrument- by-instrument basis. The classification is made on initial recognition and is irrevocable.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Profit or loss.

De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e. removed from the Company''s Balance Sheet) when

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''pass-through'' arrangement; and either:

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• The Company has transferred substantially all the risks and rewards of the asset, or

• The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On de-recognition, any gains or losses on all debt instruments (other than debt instruments measured at FVOCI) and equity instruments (measured at FVTPL) are recognised in the Statement of Profit and Loss. Gains and losses in respect of debt instruments measured at FVOCI and that are accumulated in OCI are reclassified to profit or loss on de-recognition. Gains or losses on equity instruments measured at FVOCI that are recognised and accumulated in OCI are not reclassified to profit or loss on de-recognition.

17. Impairment of financial assets

The Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, trade receivables and bank balance.

b) Financial assets measured at fair value through other comprehensive income.

In case of other assets (listed as a) above), the company determines if there has been a significant increase in credit risk of the financial asset since initial recognition. If the credit risk of such assets has not increased significantly, anamount equal to 12-month ECL is measured and recognized as loss allowance.

However, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognized as loss allowance.

18. Financial Liabilities

Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transactioncosts.

The Company’s financial liabilities include trade and other payables, loans and

borrowings including bank overdrafts, and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial Liabilities at Fair Value through Profit or Loss (FVTPL)

Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition as at fair value through profit orloss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated 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 is recognized in OCI. These gains/ losses are not subsequently transferred to profit or loss. 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 or loss.

Financial Liabilities at amortised cost

Financial liabilities classified and measured at amortised cost such as loans and borrowings are initially recognized at fair value, net of transaction cost incurred. After initial recognition, financial liabilities are subsequently measured at amortised cost using the Effective interest rate (EIR) method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss. DE-recognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carryingamounts is recognized in the statement of profit or loss.

19. Derivative financial instruments

The Company uses derivative financial instruments to manage the commodity price risk and exposure on account of fluctuation in interest rate and foreign exchange rates. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently measured at fair value with changes being recognized in Statement of Profit and Loss. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are taken through profit and loss.

20. Borrowings

Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any differences between the proceeds (net of transaction costs) and the redemption amount is recognized in Profit or loss over the period of the borrowing using the effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facilities will be drawn down. In this case, the fee is deferred until the drawdown occurs.

The borrowings are removed from the Balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of the financial liability that has been extinguished or transferred to another party and the consideration paid including any noncash asset transferred or liabilities assumed, is recognized in profit or loss as other gains/(losses).

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability of at least 12 months after

the reporting period. Where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statement for issue, not to demand payment as a consequence ofthe breach.

21. Borrowing costs

Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

Borrowing costs, allocated to and utilized for qualifying assets, pertaining to the period from commencement of activities relating to construction/development of the qualifying asset upto the date of capitalization of such asset is added to the cost of the assets.

Interest income earned on temporary investment of specific borrowing pending expenditure on qualifying asset is deducted from the borrowing costs eligible for capitalization.

All other borrowing costs are expensed in the period in which they occur.

22. Offsetting 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 recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the company, or the counterparty.

23. Claims

Claims against the Company not acknowledged as debts are disclosed after a careful evaluation of the facts and legal aspects of the matter involved.

24. Provisions, Contingent liabilities and Capital Commitments

Provisions are recognized when there is a present obligation (legal or

constructive) 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. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimate.

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

Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within the control of the Company, or present obligations where it is not probable that an outflow of resources will be required, or the amount of the obligation cannot be measured with sufficient reliability. Information on contingent liability is disclosed in the Notes to the Financial Statements.

Contingent assets are not recognized but disclosed when the inflow of economic benefits is probable. However, when the realization of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognized as an asset.

25. Government Grant

Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. A government grant that becomes receivable as compensation for expenses or losses incurred in previous period(s). Such a grant is recognized in profit or loss of the period in which it becomes receivable.

Government grants shall be recognized in profit or loss on a systematic basis over the periods in which the Company recognizes as expenses the related costs for which the grants are intended to compensate.

Government grants related to assets are presented in the balance sheet as deferred income and is recognized in profit or loss on a systematic basis over the expected useful life of the related assets or other relevant basis.

Government grants by way of financial assistance on the basis of certain qualifying criteria are recognized as they become receivable.

In the unlikely event that a grant previously recognized is ultimately not received, it is treated as a change in estimate and the amount cumulatively recognized is expensed in the Statement of Profit and Loss.

26. Revenue RecognitionSale of Goods

Revenue is recognized upon transfer of control of promised goods to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those goods.

Revenue from the sale of goods is recognized at the point in time when control is transferred to the customer which is usually on dispatch / delivery of goods, based on contracts with the customers.

Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, price concessions, incentives, and returns, if any, as specified in the contracts with the customers. Revenue excludes taxes collected from customers on behalf of the government. Accruals for discounts/incentives and returns are estimated (using the most likely method) based on accumulated experience and underlying schemes and agreements with customers. Due to the short nature of credit period given to customers, there is no financing component in the contract.

Revenue from the sale of goods excludes amounts collected on behalf of third parties, such as Goods & Services Tax (GST).

Interest Income

Interest income is accrued on using on a time basis by the effective interest rate with reference to the principal outstanding.

Dividend Income

Dividend income from investments is recognized when the shareholder’s right to receive payment has been established.

Other Income

Other income is accounted for on accrual basis except where the receipt of income is uncertain and, in such case, it is accounted for on receipt basis.

27. Employee benefits

The Company makes contributions to both defined benefit and defined contribution schemes which are mainly administered through/by duly constituted and approved Trusts and the Government.

Defined Contribution Scheme

In case of provident fund administered through Regional Provident Fund

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Commissioner, the Company has no obligation, other than the contribution payable to the provident fund.

In case of members of constituted and approved trusts, the Company recognizes contribution payable to such trusts as an expense including anyshortfall in interest between the amount of interest realized by the investment and the interest payable to members at the rate declared by the Government of India.

The Company’s contributions paid / payable during the year to provident fund

administered through Approved Trust, Regional Provident Fund Commissioner, Superannuation Fund and Employees’ State Insurance Corporation are recognized in the Statement of Profit and Loss as an expense when employees have rendered services entitling them to contributions.

Defined Benefit Scheme

Gratuity: Cost of providing the Benefit is determined on an actuarial basis at the end of the year and charged to Statement of Profit and Loss. The cost of providing these benefits is determined by independent actuary using the projected unit credit method.

Re-measurements, comprising of actuarial gains and losses and the effect of the asset ceiling, (excluding amounts included in net interest on the net defined benefit liability and return on plan assets), are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through other comprehensive income in the period in which they occur. It is included in retained earnings in the statement of changes in equity and in the balance sheet.

Leave encashment: Accrued Leaves are encashed annually at the end of the calendar year and not accumulated. Provision for the same is done on thebasis of leaves accrued as at the end of the reporting period.

28. Research and Development Expenditure

Expenditure on research of revenue nature is charged to Statement of Profit and Loss and that of capital nature is capitalized as fixed assets.

29. Taxes on Income

Current tax is the amount of tax payable determined in accordance with the

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applicable tax rates and provisions of the Income Tax Act, 1961 and other applicable tax laws.

Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the Balance sheet and the corresponding tax bases used in the computation of taxable profit and are accounted for using the liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences, and deferred tax assets are generally recognized for all deductible temporary differences, carry forward tax lossesand allowances to the extent that it is probable that future taxable profits will be available against which those deductible temporary differences, carry forward tax losses and allowances can be utilized. Deferred tax assets and liabilities are measured at the applicable tax rates. Deferred tax assets anddeferred tax liabilities are off set, and presented as net.

Current and deferred taxes relating to items directly recognized in reserves are recognized in reserves and not in the Statement of Profit and Loss.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as andeferred tax asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

30. Dividend Distribution

Dividends paid (including income tax thereon) is recognized in the period inwhich the interim dividends are approved by the Board of Directors, or inrespect of the final dividend when approved by shareholders.

31. Cash Flow Statement

Cash flows statement is prepared as per the Indirect Method specified in Ind AS 7 on Cash Flows. Cash and cash equivalents (including bank balances) shown in statement of cash flows exclude item which are not available for general use on the date of balance sheet.

32. Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax

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(including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the posttax effect of extra-ordinary items (if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.

33. Segment Reporting

Operating segments are reported in consistent manner with the internal reporting provided to the Chief Operating Decision Maker (CODM) of the Company. The CODM is responsible for allocating resources and assessing performance of the Company.

34. Ministry of Corporate affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025, MCA has notified amendments to Ind AS-117 insurance Contracts. Ind AS 116- Leases, relating to sale and lease back transactions and consequential amendments to other standards which are not material, applicable to the Company w.e.f. April 1, 2024. The Company has reviewed the new pronouncements and based on its evaluation has determined that it does not have any significant impact in its financial statements.

On 7 May, 2025, MCA issued the Companies (Indian Accounting Standards) Amendment Rules, 2025, which made certain amendments to Ind AS 21 The Effects of Changes in Foreign Exchange Rates, effective from 1 April, 2025. These amendments define currency exchange ability, provide guidance on estimating spot exchange rates when a currency is not exchangeable and include related disclosure requirements. The Company does not expect this amendment to have any significant impact in its financial statements.

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Mar 31, 2024

B. MATERIAL ACCOUNTING POLICIES

1. Statement of compliance

The financial statements have been prepared in accordance 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.
In addition, the guidance notes/announcements issued by the Institute of Chartered Accountants of
India (ICAI) are also applied except where compliance with other statutory promulgations
requires a different treatment.

2. Basis of preparation

The financial statements have been prepared on the historical cost convention on an accrual
basis except for the following assets and liabilities which have been measured at fair value
amount:

i) Defined benefit plans

Historical cost is generally based on the fair value of the consideration given in exchange for
goods or services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date, regardless of
whether that price is directly observable or estimated using another valuation technique.

3. Operating Cycle for current and non-current classification

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

An asset is classified as current when it is:

a) expected to be realized or intended to be sold or consumed in the normal operating
cycle,

b) held primarily for the purpose of trading,

c) expected to be realized within twelve months after the reporting period, or

d) cash or cash equivalents unless restricted from being exchanged or used to settle a liability
for at least twelve months after the reporting period.

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

a) it is expected to be settled in the normal operating cycle,

b) it is held primarily for the purpose of trading,

c) it is due to be settled within twelve months after the reporting period, or

d) there is no unconditional right to defer settlement of the liability for at least twelve months after
the reporting period.

All other liabilities are classified as non-current.

The operating cycle of the Company, that is, the time between the acquisition of assets for
processing and their realization in cash or cash equivalent is 12 months.

Deferred tax assets and liabilities are classified as non-current.

4. The company’s financial statements are presented in Indian Rupees, which is also its functional
currency.

5. Critical estimate and Judgements

The preparation of financial statements in conformity with Ind AS requires management to make
judgments, estimates, and assumptions that affect the application of the accounting policies
and the reported amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of revenues and
expenses during the year. Actual results could differ from those estimates. The estimates and
underlying assumptions are reviewed on an ongoing basis.

The areas involving critical estimates or judgments are:

• Employee benefits (estimation of defined benefit obligation)

Post-employment benefits represent obligations that will be settled in the future and require

assumptions to project benefit obligations. Post- employment benefit accounting is intended
to reflect the recognition of future benefit costs over the employee’s approximate service
period, based on the terms of the plans and the investment and funding decisions made. The
accounting requires the Company to make assumptions regarding variables such as discount
rate and salary growth rate. Changes in these key assumptions can have a significant impact on
the defined benefit obligations.

• Estimation of expected useful lives of property, plant, and equipment Management reviews its
estimate of the useful lives of property, plant, and equipment at each reporting date, based

m

on the expected utility of the assets. Uncertainties in these estimates relate to technical
and economic obsolescence that may change the utility of property, plant, and equipment.

• Contingencies

Legal proceedings covering a range of matters are pending against the Company. Due to the
uncertainty inherent in such matters, it is often difficult to predict the final outcome. The cases
and claims against the Company often raise difficult and complex factual and legal issues that
are subject to many uncertainties and complexities, including but not limited to the facts and
circumstances of each particular case/claim, the jurisdiction and the differences in applicable
law. In the normal course of business, the Company consults with legal counsel and other
experts on matters related to litigations. The Company accrues a liability when it is
determined that an adverse outcome is probable and the amount of the loss can be reasonably
estimated. In the event an adverse outcome is possible or an estimate is not determinable, the
matter is disclosed.

• Valuation of deferred tax assets

Deferred income tax expense is calculated based on the differences between the carrying
value of assets and liabilities for financial reporting purposes and their respective tax bases
that are considered temporary in nature.

The valuation of deferred tax assets is dependent on management’s assessment of the future
recoverability of the deferred benefit. Expected recoverability may result from expected
taxable income in the future, planned transactions, or planned optimizing measures. Economic
conditions may change and lead to a different conclusion regarding recoverability.

• Fair value measurements

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet
cannot be measured based on quoted prices in active markets, their fair values are measured

using valuation techniques, including the market multiples model (Market Approach) and
Capitalisation method (Income Approach) which involve various judgments and assumptions.

• Impairment of Property, plant and equipment, Right-of-use assets, intangible assets (other
than goodwill), and Capital work-in-progress

The Company estimates the value in use of the cash-generating unit (CGU) based on future
cash flows after considering current economic conditions and trends, estimated future
operating results and growth rates and anticipated future economic and regulatory conditions.
The estimated cash flows are developed using internal forecasts. The cash flows are discounted
using a suitable discount rate in order to calculate the present value.

For the purpose of assessing impairment, assets are grouped at the lowest levels for which
there are separately identifiable cash inflows which are largely independent of the cash
inflows from other assets or groups of assets.

Revisions to accounting estimates are recognized prospectively in the period in which the
estimate is revised if the revision affects only that period; they are recognized in the period of
the revision and future periods if the revision affects both current and future periods.

6. Property, plant, and equipment (PPE)

Property, plant, and equipment are stated at cost, net of recoverable taxes, trade discounts, and
rebates less accumulated depreciation and impairment losses, if any. Such cost includes
purchase price, borrowing cost, and any cost directly attributable to bringing the assets to their
working condition for its intended use, net charges on foreign exchange contracts, and
adjustments arising from exchange rate variations attributable to the assets.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item
will flow to the entity and the cost can be measured reliably.

Assets are classified into the appropriate categories of property, plant, and equipment when
completed and ready for intended use.

Expenses incurred relating to the project, including borrowing cost and net income earned
during the project development stage prior to its intended use, are considered as pre¬
operative expenses and disclosed under Capital Work-in-Progress.

Spare parts are capitalized when they meet the definition of PPE, i.e., when the Company intends
to use these during more than a period of 12 months.

7. Investment property

Property that is held for long-term rental yields or for capital appreciation or both, and that is
not occupied by the Company, is classified as investment property. Property, plant, and
equipment are stated at cost, net of recoverable taxes, trade discounts, and rebates less
accumulated depreciation and impairment losses, if any. For this purpose, cost includes
deemed cost which represents the carrying value of property, plant, and equipment
recognized on 1st April 2016 measured as per the previous GAAP. Such cost includes purchase
price, borrowing cost, and any cost directly attributable to bringing the assets to its working
condition for its intended use, net charges on foreign exchange contracts, and adjustments
arising from exchange rate variations attributable to the assets.

An item of property, plant, and equipment or any significant part initially recognized of such
item of property plant and equipment is derecognized upon disposal or when no future
economic benefits are expected from its use or disposal.

Any gain or loss arising on the DE recognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in the
income statement when the asset is unrecognized.

8. Depreciation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost,
less its estimated residual value. Depreciation has been provided on such cost of assets less
their residual values on straight line method on the basis of estimated useful life of assets as
prescribed in Schedule II of the Act.

Freehold land is not depreciated/amortized.

Assets held under financial leases are depreciated over their expected useful lives on the same
basis as owned assets or, wherever shorter, the term of the relevant lease.

Depreciation is calculated on a pro-rata basis except that, assets costing up to Rs. 5,000 each
are fully depreciated in the year of purchase.

The estimated useful lives and methods of depreciation of property, plant, and equipment
are reviewed at each financial year end and adjusted prospectively, if appropriate.

9. Intangible Assets

Intangible Assets are stated at the cost of acquisition net of recoverable taxes, trade

discount, and rebates less accumulated amortization/depletion and impairment loss, if any.
Such cost includes purchase price, borrowing costs, and any cost directly attributable to
bringing the asset to its working condition for the intended use, net charges on foreign
exchange contracts, and adjustments arising from exchange rate variations attributable to
the intangible assets.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate
asset, as appropriate, only when it is probable that future economic benefits associated with
the item will flow to the entity and the cost can be measured reliably.

Following initial recognition, intangible assets are carried at cost less any accumulated
amortization and accumulated impairment losses, if any.

Gains or losses arising from the derecognition of an intangible asset are measured as the
difference between the net disposal proceeds and the carrying amount of the asset and are
recognized in the Statement of Profit and Loss when the asset is derecognized.

Intangible assets being computer software are amortised on a straight line method over the
period of five years.

10. Impairment of tangible and intangible assets other than goodwill

The Company assesses, at each reporting date, whether there is an indication that an
asset may be impaired. If any indication exists, or when annual impairment testing for an
asset is required, the Company estimates the asset’s recoverable amount. An asset’s
recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less
costs of disposal and its value in use.

Impairment loss is recognized when the carrying amount of an asset exceeds recoverable
amount.

For assets excluding goodwill, an assessment is made at each reporting date to determine
whether there is an indication that previously recognized impairment losses no longer exist or
have decreased.

If such indication exists, the Company estimates the asset’s or CGU’s recoverable amount. A
previously recognised impairment loss is reversed. The reversal is limited so that the carrying
amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount
that would have been determined, net of depreciation, had no impairment loss been
recognised for the asset in prior years.

11. Leases

Company as a Lessee

The Company assesses whether a contract contains a lease, at the inception of a contract. A
contract is, or contains, a lease if the contract conveys the right to control the use of an
identified asset for a defined period of time in exchange for consideration. To assess whether a
contract conveys the right to control the use of an identified asset, the Company assesses
whether: (i) the contract involves the use of an identified asset (ii) the Company has
substantially all of the economic benefits from use of the asset through the period of the lease
and (iii) the Company has the right to direct the use of the asset.

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

The right-of-use asset is subsequently depreciated using the straight-line method from the
commencement date to the earlier of the end of the useful life of the right-of-use asset or the
end of the lease term.

The estimated useful lives of right-of-use assets are determined on the same basis as those of
property and equipment. In addition, the right-of-use asset is periodically reduced by impairment
losses, if any, and adjusted for certain re measurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are
not paid at the commencement date, discounted using the interest rate implicit in the lease
or, if that rate cannot be readily determined, and the Company’s incremental borrowing
rate. For leases with reasonably similar characteristics, the Company, on a lease-by-lease
basis, may adopt either the incremental borrowing rate specific to the lease or the incremental
borrowing rate for the portfolio as a whole.

Lease payments included in the measurement of the lease liability comprise the fixed payments,
including in-substance fixed payments and lease payments in an optional renewal period if the
Company is reasonably certain to exercise an extension option;

The lease liability is measured at amortized cost using the effective interest method.

The Company has elected not to recognize right-of-use assets and lease liabilities for short¬
term leases that have a lease term of 12 months or less and leases of low-value assets. The
Company recognizes the lease payments associated with these leases as an expense on a
straight-line basis over the lease term. The Company applied a single discount rate to a
portfolio of leases of similar assets in a similar economic environment with a similar end date.
Company as a Lessor

Leases in which the Company does not transfer substantially all the risks and rewards of
ownership of an asset are classified as operating leases. Where the Company is a lessor under
an operating lease, the asset is capitalized within property, plant, and equipment and
depreciated over its useful economic life. Payments received under operating leases are
recognized in the Statement of Profit and Loss on a straight-line basis over the term of the
lease.

12. Inventories

Inventories are valued at cost or net realizable value, whichever is lower. The basis for
determining the cost for various categories of inventory are as follows:

(a) Raw materials, Chemicals, Components, stores & spares, and Stock in Trade - Cost
includes the cost of purchase (Net of recoverable taxes) and other costs incurred in bringing
the inventories to their present location and condition. Cost is determined on a FIFO basis.

(b) Stock in process and finished goods- Direct cost plus an appropriate share of overheads.

(c) Saleable Scrap/Waste/By-products - At estimated realizable value.

Net realizable value is the estimated selling price in the ordinary course of business, less
estimated costs of completion and the estimated costs necessary to make the sale.

13. Foreign Currencies

a) Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary
economic environment in which the entity operates (‘the functional currency’). The financial
statements are presented in Indian Rupee (INR/Rupees), which is the Company’s functional and
presentation currency.

b) Transaction and balances

Transactions in foreign currencies are recorded on initial recognition at the exchange rate

prevailing on the date of the transaction.

Any gains or losses arising due to differences in exchange rates at the time of translation or
settlement are accounted for in the Statement of Profit & Loss either under the head foreign
exchange fluctuation or interest cost, as the case may be, except those relating to long-term
foreign currency monetary items.

14. Investment in Subsidiaries and Associates

Investments in subsidiaries, associates, and other related parties are carried at cost less
accumulated impairment, if any.

15. 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. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer
the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market which can be
accessed by the Company for the asset or liability.

The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their
economic best interest.

The Company uses valuation techniques that are appropriate in the circumstances and for
which sufficient data are available to measure fair value, maximizing the use of relevant
observable inputs and minimizing the use of unobservable inputs.

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

• Level 1 Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable

• Level 3 Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable for assets and liabilities that are recognized in the financial

statements on a recurring basis, the Company determines whether transfers have occurred
between levels in the hierarchy by re-assessing categorization (based on the lowest level input
that is significant to the fair value measurement as a whole) at the end of each reporting
period.

16. Financial Assets
Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the
acquisition of the financial asset. Purchases or sales of financial assets that require delivery of
assets within a time frame established by regulation or convention in the marketplace
(regular way trades) are recognized on the trade date, i.e., the date that the Company
commits to purchase or sell the asset.

Subsequent measurement

Subsequent measurement is determined with reference to the classification of the respective
financial assets. Based on the business model for managing the financial assets and the
contractual cash flow characteristics of the financial asset, the Company classifies financial
assets as subsequently measured at amortized cost, fair value through other comprehensive
income or fair value through profit and loss.

Debt instruments at amortized cost

Debt instruments such as trade and other receivables, security deposits, and loans given are
measured at the amortized cost if both the following conditions are met:

The asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows, and

Contractual terms of the asset give rise on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost
using the effective interest rate (EIR) method. Amortized cost is calculated by taking into
account any discount or premium on acquisition and fees or costs that are an integral part of
the EIR. The EIR amortization is included in finance income in the profit or loss. The losses
arising from impairment are recognized in the profit or loss.

Equity investments

All equity investments in the scope of Ind-AS 109 are measured at fair value. Equity instruments
that are held for trading are classified as at FVTPL. For all other equity instruments, the company
decides to classify the same either as at FVTOCI or FVTPL. The company makes such an election
on an instrument- by-instrument basis. The classification is made on initial recognition and is
irrevocable.

Equity instruments included w''thin the FVTPL category are measured at fair value with all
changes recognized in the Profit or loss.

De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is primarily derecognized (i.e. removed from the Company''s Balance Sheet)
when

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under
a ''pass-through'' arrangement; and either:

• The Company has transferred substantially all the risks and rewards of the asset, or

• The Company has neither transferred nor retained substantially all the risks and rewards of the
asset, but has transferred control of the asset.

On de-recognition, any gains or losses on all debt instruments (other than debt instruments
measured at FVOCI) and equity instruments (measured at FVTPL) are recognised in the
Statement of Profit and Loss. Gains and losses in respect of debt instruments measured at FVOCI
and that are accumulated in OCI are reclassified to profit or loss on de-recognition. Gains or
losses on equity instruments measured at FVOCI that are recognised and accumulated in OCI are
not reclassified to profit or loss on de-recognition.

17. Impairment of financial assets

The Company applies expected credit loss (ECL) model for measurement and recognition of
impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans,
debt securities, deposits, trade receivables and bank balance.

b) Financial assets measured at fair value through other comprehensive income.

In case of other assets (listed as a) above), the company determines if there has been a
significant increase in credit risk of the financial asset since initial recognition. If the credit risk of
such assets has not increased significantly, an amount equal to 12-month ECL is measured and
recognized as loss allowance. However, if credit risk has increased significantly, an amount
equal to lifetime ECL is measured and recognized as loss allowance.

18. Financial Liabilities
Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings
including bank overdrafts, and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:
Financial Liabilities at Fair Value through Profit or Loss (FVTPL)

Financial liabilities at fair value through profit or loss include financial liabilities designated
upon initial recognition as at fair value through profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are
designated 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 is recognized in OCI. These gains/ losses are not subsequently transferred to profit
or loss. However, the company may transfer the cumulative gain or loss within equity. All other
changes in fair value of such liability are recognized in the statement of profit or loss.
Financial Liabilities at amortised cost

Financial liabilities classified and measured at amortized cost such as loans and borrowings
are initially recognized at fair value, net of transaction cost incurred. After initial
recognition, financial liabilities are subsequently measured at amortized cost using the
Effective interest rate (EIR) method. Gains and losses are recognized in profit or loss when
the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and
fees or costs that are an integral part of the EIR. The EIR amortization is included as finance
costs in the statement of profit and loss.

DE recognition

A financial liability is derecognized when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the de-recognition of the original
liability and the recognition of a new liability. The difference in the respective carrying
amounts is recognized in the statement of profit or loss.

19. Derivative financial instruments

The Company uses derivative financial instruments to manage the commodity price risk and
exposure on account of fluctuation in interest rate and foreign exchange rates. Such derivative
financial instruments are initially recognized at fair value on the date on which a derivative
contract is entered into and are subsequently measured at fair value with changes being
recognized in Statement of Profit and Loss. Derivatives are carried as financial assets when the
fair value is positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are taken through
profit and loss.

20. Borrowings

Borrowings are initially recognized at fair value, net of transaction costs incurred.
Borrowings are subsequently measured at amortized cost. Any differences between the
proceeds (net of transaction costs) and the redemption amount is recognized in Profit or
loss over the period of the borrowing using the effective interest method. Fees paid on
the establishment of loan facilities are recognized as transaction costs of the loan to the
extent that it is probable that some or all of the facilities will be drawn down. In this case, the
fee is deferred until the drawdown occurs.

The borrowings are removed from the Balance sheet when the obligation specified in the
contract is discharged, cancelled or expired. The difference between the carrying amount of
the financial liability that has been extinguished or transferred to another party and the
consideration paid including any noncash asset transferred or liabilities assumed, is
recognised in profit or loss as other gains/(losses).

Borrowings are classified as current liabilities unless the group has an unconditional right

to defer settlement of the liability of at least 12 months after the reporting period. Where
there is a breach of a material prov''sion of a long-term loan arrangement on or before the
end of the reporting period with the effect that the liability becomes payable on demand
on the reporting date, the entity does not classify the liability as current, if the lender
agreed, after the reporting period and before the approval of the financial statement for
issue, not to demand payment as a consequence of the breach.

21. Borrowing costs

Borrowing costs consist of interest and other costs that an entity incurs in connection with
the borrowing of funds.

Borrowing cost also includes exchange differences to the extent regarded as an adjustment
to the borrowing costs.

Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from
commencement of activ''ties relating to construction/development of the qualifying asset
upto the date of capitalization of such asset is added to the cost of the assets.

Interest income earned on temporary investment of specific borrowing pending
expenditure on qualifying asset is deducted from the borrowing costs eligible for
capitalization.

All other borrowing costs are expensed in the period in which they occur.

22. Offsetting 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 realise the assets
and settle the liabilities simultaneously. The legally enforceable right must not be
contingent on future events and must be enforceable in the normal course of business and in
the event of default, insolvency or bankruptcy of the company, or the counterparty.

23. Claims

Claims against the Company not acknowledged as debts are disclosed after a careful
evaluation of the facts and legal aspects of the matter involved.

---

Mar 31, 2015

1.1) BASIS OF ACCOUNTING :

The financial statements are prepared under the historical cost convention on accrual basis of accounting in accordance with the applicable accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006 (AS), Generally Accepted Accounting Principles (GAAP) in India and the relevant provisions of Companies Act, 1956 (The Act).

1.2) USE OF ESTIMATE :

The preparation of financial statement requires estimates & assumptions that affect the reported amount of assets & liabilities on the Balance Sheet date and the revenues and expenses during the year. Difference, if any, between the actual & estimate is recognised in the year in which the same are acknowleged / materialised.

1.3) FIXED ASSETS:

Fixed Assets are stated at cost (of acquisition or construction, as the case may be) less accumulated depreciation and impairment losses, if any. All direct expenses, borrowing cost and other expenses during construction period are capitalized.

1.4) INTANGIBLE ASSETS:

Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to the assets will flow to the company and the cost of the assets can be measured reliably. The intangible assets are recorded at cost and are carried at cost less accumulated amortization and impairment losses, if any.

1.5) CAPITAL WORK IN PROGRESS:

Capital Work in Progress comprises cost of Fixed Assets not yet commissioned, incidental expenses, borrowing cost and advance for capital expenditure.

1.6) DEPRECIATION / AMORTISATION :

a) Depreciation on Sulphuric Acid Plant, Single Super Phosphate and Granulated Single Super Phosphate Plants is provided on Straight Line Method (modified for multiple shift/Continuous Process Plants wherever applicable) over the useful life of the respective Plants as envisaged by a Government approved Chartered Engineer which is as under

Plant Description Useful Life in Years

Single Double Shift Basis Shift Basis

Single Super Phosphate Plant 12 7.75

Single Super Phosphate Gran. Plant 12 7.75

Sulphuric Acid Plant - -

Plant Description Triple Shift Continuous Basis Process Plant



Single Super Phosphate Plant 5.50 -

Single Super Phosphate Gran. Plant 5.50 -

Sulphuric Acid Plant - 10.80

Accordingly, these assets fully depriciated in the books of company.

b) Depreciation on Plant and Machinery (other than those specified in para 1.6(a) above) and other Fixed Assets is provided on Straight Line Method on the basis of useful life specified in Schedule II to the Companies Act, 2013. Fixed assets costing below Rs. 5000.00 are fully depriciated in the year of addition.

Depriciation is provided on pro-rata basis with reference to the date of addition / deletion in respect of addition to / deletion of fixed assets.

c) Computer Software being intangible asset is amortized over a period of 5 years on "Straight Line Method".

1.7 REVENUE RECOGNITION :

a) Sales are recognised on despatch of goods to costomers. Sales are shown inclusive of exice duty but excluding dealer margin & sales tax

b) Subsidy is recognised when certainly of receipt is established.

c) All other incomes are accounted for on accrual basis.

1.8 CENVAT CREDIT

Cenvat Credit availed in respect of capital goods is adjusted from cost of asset and in respect of other item is adjusted from related expenses.

1.9 BORROWING COSTS

Borrowing costs that are attributable to the acquisition/construction of qualifying assets are capitalized as part of cost of such assets. A qualifying assets is an assets that requires a substantial period of time to get ready for its intended use. All other borrowing cost are recognized as an expense in the year in which they are incurred.

1.10 INVENTORIES:

a) Raw Materials at factory is valued at lower of cost (determined on Annual weighted average basis) or net releasable value; whereas stock lying at port or in transit is valued at lower of direct purchase cost or net realizable value.

b) Stock of Finished Goods, is valued at lower of cost (determined on direct Annual cost basis) or net realizable value. Excise Duty is not considered while ascertaining cost.

c) Work in Process is valued at lower of estimated cost or net realizable value.

d) Chemicals, Stores and Spares are valued at lower of cost (determined on FIFO basis) or estimated realizable value.

e) Waste and Scraps are determined as at the close of the year and are valued at estimated realizable value.

1.11 TAXES ON INCOME :

Provision for tax on income for the year (i.e. current tax) is made after considering the various deductions / relief admissible under the Income Tax Act, 1961. Provision for tax effect of timing difference (i.e. Deferred tax ) is made in accordance with the provisions of Accounting Standard 22, Accounting for Taxes on Income (AS-22) issued by the Institute of Chartered Accountants of India.

1.12) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognized in respect of obligations where, based on the evidences available, their existence at the Balance Sheet date is considered probable. Contingent liabilities are disclosed by way of notes on accounts in respect of obligations where, based on the evidences available, their existence at the Balance Sheet date is considered not probable. Contingent assets are not recognized in the accounts.

1.13 IMPAIRMENT OF ASSETS:

The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than the carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit & Loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

1.14 GOVERNMENT GRANTS :

Grants are recognized when certainty of receipt is established. Grant related to fixed assets are adjusted with the gross block / cost of fixed assets and grants of revenue nature are adjusted with the respective expenditure / treated as income as the case may be.

1.15 EMPLOYEE BENEFITS :

a) Companies contribution to provident fund and family pension fund are charged to Profit & Loss account.

b) Provision of gratuity is determined on the basis of actuarial valuation as at the end of the year and is charged to statement of Profit and Loss each year.

c) Provision for leave encashment (treated as short term in nature) is done on the basis of leaves accrued as at the end of year.

d) Termination benefits are recognized as an expense as and when incurred.

1.16 RESEARCH & DEVELOPMENT EXPENDITURE :

Expenditure of revenue nature is charged to the statement of Profit & Loss and that of capital nature is capitalized as fixed assets.

1.17 Prior period items, if material, are shown separately.

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Mar 31, 2012

1.1) BASIS OF ACCOUNTING:

Accounts are prepared on accrual basis in accordance with generally accepted accounting principles unless stated otherwise.

1.2) USE OF ESTIMATE:

The preparation of financial statement requires estimates & assumptions that affect the reported amount of assets & liabilities on the Balance Sheet date and the revenues and expenses during the year. Difference, if any, between the actual & estimate is recognised in the year in which the same of acknowledged/materialised.

1.3) FIXED ASSETS:

Fixed Assets are stated at cost (of acquisition or construction, as the case may be) less accumulated depreciation and impairment losses, if any. All direct expenses, borrowing cost and other expenses during construction period are capitalized.

1.4) INTANGIBLE ASSETS:

Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to the assets will flow to the company and the cost of the assets can be measured reliably. The intangible assets are recorded at cost and are carried at cost less accumulated amortization and impairment losses, if any.

1.5) CAPITAL WORK IN PROGRESS:

Capital Work in Progress comprises cost of Fixed Assets not yet commissioned, incidental expenses, borrowing cost and advance for capital expenditure.

1.6) DEPRECIATION/AMORTISATION:

Accordingly, as per the practice consistently followed by the company, depreciation on above plant and machinery has been provided on Straight Line Method over the total useful life of the respective plants instead of applying the rate prescribed by Schedule XIV to the Companies Act, 1956.

b) Depreciation on other Fixed Assets is provided on Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956.

c) Computer Software being intangible asset is amortized over a period of 5 years on "Straight Line Method".

1.7 REVENUE RECOGNITION :

a) Sale are recognised on despatch of goods to customer. Sales are shown inclusive of excise duty but excluding dealer margin & sales tax.

b) Subsidy is recognised when certainly of receipt is established.

c) All other incomes are accounted for on accrual basis.

1.8 CENVAT CREDIT

Cenvat Credit availed in respect of capital goods is adjusted from cost of asset and in respect of other item is adjusted from related expenses

1.9 BORROWING COSTS

Borrowing costs that are attributable to the acquisition/construction of qualifying assets are capitalized as part of cost of such assets. A qualifying assets is an assets that requires a substantial period of time to get ready for its intended use. All other borrowing cost are recognized as an expense in the year in which they are incurred.

1.10 INVENTORIES:

a) Raw Materials at factory is valued at lower of cost (determined on Annual weighted average basis) or net releasable value; whereas stock lying at port or in transit is valued at lower of direct purchase #### or net realizable value.

b) Stock of Finished Goods, is valued at lower of cost (determined on direct Annual cost basis) or net realizable value.

c) Work in Process is valued at lower of estimated cost or net realizable value.

d) Chemicals, Stores and Spares are valued at lower of cost (determined on FIFO basis) or net realizable value.

e) Waste and Scraps are determined as at the close of the year and are valued at estimated realizable value.

1.11 TAXES ON INCOME:

Provision for tax on income for the year (i.e. current tax) is made after considering the various deductions /relief admissible under the Income Tax Act, 1961. Provision for tax effect of timing difference (i.e. Deferred tax ) is made in accordance with the provisions of Accounting Standard 22, Accounting for Taxes on Income (AS-22) issued by the Institute of Chartered Accountants of India.

1.12 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognized in respect of obligations where, based on the evidences available, their existence at the Balance Sheet date is considered probable. Contingent liabilities are disclosed by way of notes on accounts in respect of obligations where, based on the evidences available, their existence at the Balance Sheet date is considered not probable. Contingent assets are not recognized in the accounts.

1.13 IMPAIRMENT OF ASSETS:

The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than the carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Profit & Loss account. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

1.14 GOVERNMENT GRANTS :

Grants are recognized when certainty of receipt is established. Grant related to fixed assets are adjusted which the gross block/cost of fixed assets and grants of revenue nature are adjusted which the respective expenditure/treated as income as the case may be.

1.15 EMPLOYEE BENEFITS :

a) Companies contribution to provident fund and family pension fund are charged to Profit & Loss account.

b) Provision of gratuity is determined on the basis of completed year of service in respect of employees eligible for gratuity at the end of year and is debited to the Profit & Loss account each year.

c) Provision for leave encashment (treated as short term in nature) is done on the basis of leaves accrued as at the end of year.

d) Termination benefits are recognized as an expense as and when incurred.

1.16 RESEARCH & DEVELOPMENT EXPENDITURE :

Expenditure of revenue nature is charged to Profit & Loss account and that of capital nature is capitalization as fixed assets.

1.17 Prior period items, if material, are shown separately.

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Mar 31, 2010

1) BASIS OF ACCOUNTING :

Accounts are prepared on accrual basis in accordance with generally accepted accounting principles unless stated otherwise.

2) SALES:

Sales are recognized on dispatch of goods to customers. Sales are shown inclusive of excise duty but excluding dealer margin and sales tax.

3) FIXED ASSETS:

Fixed Assets are stated at cost (of acquisition or construction, as the case may be) less accumulated depreciation and impairment losses, if any. All direct expenses, borrowing cost and other expenses during construction period are capitalized.

4) INTANGIBLE ASSETS:

Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to the assets will flow to the company and the cost of the assets can be measured reliably. The intangible assets are recorded at cost and are carried at cost less accumulated amortization and impairment losses, if any.

5) CAPITAL WORK IN PROGRESS:

Capital Work in Progress comprises cost of Fixed Assets not yet commissioned, incidental expenses, borrowing cost and advance for capital expenditure.

6) DEPRECIATION / AMORTISATION:

a) Depreciation on Sulphuric Acid Plant, Single Super Phosphate and Granulated Single Super Phosphate Plants is provided on Straight Line Method (modified for multiple shift/Continuous Process Plants wherever applicable) over the useful life of the respective Plants as envisaged by a Government approved Chartered Engineer (Refer note No.B-2 of Schedule 20)

b) Depreciation on other Fixed Assets is provided on Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956.

c) Computer Software being intangible asset is amortized over a period of 5 years on "Straight Line Method".

7) CENVAT CREDIT:

CENVAT Credit availed in respect of capital goods is adjusted from cost of assets and in respect of other item is adjusted from related expenses.

8) BORROWING COST:

Borrowing costs that are attributable to the acquisition/construction of qualifying assets are capitalized as part of cost of such assets. A qualifying assets is an assets that requires a substantial period of time to get ready for its intended use. All other borrowing cost are recognized as an expense in the year in which they are incurred.

9) INVENTORIES:

a) Raw Materials at factory is valued at lower of cost (determined on Annual weighted average basis) or net releasable value; whereas stock lying at port or in transit is valued at lower of direct purchase cost or net realizable value.

b) Stock of Finished Goods, is valued at lower of cost (determined on direct Annual cost basis) or net realizable value.

c) Work in Process is valued at lower of estimated cost or net realizable value.

d) Chemicals, Stores and Spares are valued at lower of cost (determined on FIFO basis) or net realizable value.

e) Waste and Scraps are determined as at the close of the year and are valued at estimated realizable value.

10) TAXES ON INCOME:

Provision for tax on income for the year (i.e. current tax) is made after considering the various-deductions / relief admissible under the Income Tax Act, 1961. Provision for tax effect of timing difference (i.e. deferred tax) is made in accordance with the provisions of Accounting Standard 22, Accounting for Taxes on Income (AS-22) issued by the Institute of Chartered Accountants of India.

11) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognized in respect of obligations where, based on the evidences available, their existence at the Balance Sheet date is considered probable. Contingent liabilities are disclosed by way of notes on accounts in respect of obligations where, based on the evidences available, their existence at the Balance Sheet date is considered not probable. Contingent assets are not recognized in the accounts.

12) IMPAIRMENT OF ASSETS:

The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than the carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Profit & Loss account. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

13) Prior period items, if material, are shown separately.