Atlanta Electricals Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period
in which the estimates are revised and future
periods are affected.

The Company uses the following critical accounting
estimates in preparation of its standalone financial
statements

(i) Useful lives of property, plant and
equipment

The Company reviews the useful life of
property, plant and equipment at the end of
each reporting period. This reassessment may
result in change in depreciation expense in
future periods.

(ii) Fair value measurement of financial
instruments

When the fair value of financial assets and
financial liabilities recorded in the balance
sheet cannot be measured based on quoted
prices in active markets, their fair value
is measured using valuation techniques
including the Discounted Cash Flow/NAV
model. The inputs to these models are taken
from observable markets where possible,
but where this is not feasible, a degree of
judgement is required in establishing fair
values. Judgements include considerations
of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these
factors could affect the reported fair value of
financial instruments.

(iii) Provision for income tax and deferred tax
assets

The Company uses estimates and judgements
based on the relevant rulings in the areas
of allocation of revenue, costs, allowances
and disallowances which is exercised while
determining the provision for income tax. A
deferred tax asset is recognised to the extent
that it is probable that future taxable profit
will be available against which the deductible
temporary differences and tax losses can be
utilised. Accordingly, the Company exercises
its judgement to reassess the carrying amount
of deferred tax assets at the end of each
reporting period.

(iv) Provision for Expected Credit Losses (ECL)
of trade receivables

The Company uses a provision matrix to
calculate ECLs for trade receivables . The
provision rates are based on days past due for
groupings of various customer segments that
have similar loss patterns (i.e., by geography,
product type, customer type and rating, and
coverage by letters of credit and other forms
of credit insurance). The provision matrix is
initially based on the Company''s historical
observed default rates. The Company will
calibrate the matrix to adjust the historical
credit loss experience with forward-looking
information. At every reporting date, the
historical observed default rates are updated
and changes in the forwardlooking estimates
are analysed.

The assessment of the correlation between
historical observed default rates, forecast
economic conditions and ECLs is a significant
estimate.The amount of ECLs is sensitive to
changes in circumstances and of forecast
economic conditions. The Company''s
historical credit loss experience and forecast
of economic conditions may also not be
representative of customer''s actual default in
the future. The information about the ECLs on
the Company''s trade receivables and contract
assets is disclosed in Notes.

(v) Provisions and contingent liabilities

The Company estimates the provisions
that have present obligations as a result of
past events and it is probable that outflow
of resources will be required to settle the
obligations. These provisions are reviewed
at the end of each reporting period and are
adjusted to reflect the current best estimates.

The Company uses significant judgements
to assess contingent liabilities. Contingent
liabilities are recognised when there is a
possible obligation arising from past events,
the existence of which will be confirmed
only by the occurrence or non-occurrence
of one or more uncertain future events not
wholly within the control of the Company
or a present obligation that arises from past
events where it is either not probable that
an outflow of resources will be required to
settle the obligation or a reliable estimate
of the amount cannot be made. Contingent
assets are neither recognised nor disclosed in

thestandalone financial statements.

C Property, Plant and Equipment

Property, plant and equipment (including
furniture, fixtures, vehicles, etc.) held for use in the
production or supply of goods or services, or for
administrative purposes, are stated in the balance
sheet at cost less accumulated depreciation
and accumulated impairment losses. Cost of
acquisition is inclusive of freight, duties, taxes
and other incidental expenses. When significant
parts of plant and equipment are required to be
replaced at intervals, the Company depreciates
them separately based on their specific useful
lives. Freehold land is not depreciated.

Capital work in progress is stated at cost, net of
impairment loss, if any. Cost includes items directly
attributable to the construction or acquisition of
the item of property, plant and equipment, and,
for qualifying assets, borrowing costs capitalised in
accordance with the Company''s accounting policy.
Such properties are classified to the appropriate
categories of property, plant and equipment
when completed and ready for intended use.
Depreciation of these assets, on the same basis
as-other property assets, commences when the
assets are ready for their intended use.

Depreciation is recognised so as to write off
the cost of assets (other than freehold land and
properties under construction) less their residual
values over their useful lives, using the straight¬
line method. The estimated useful lives, residual
values and depreciation method are reviewed at
the end of each reporting period, with the effect
of any changes in estimate accounted for on a
prospective basis.

Depreciation is charged on a pro-rata basis at the
straight line method over estimated economic
useful lives of its property, plant and equipment
generally in accordance with that provided in the
Schedule II to the Act as provided below.

An item of property, plant and equipment is
derecognised upon disposal or when no future
economic benefits are expected to arise from
the continued use of the asset. Any gain or loss
arising on the disposal or retirement of an item of
property, plant and equipment is determined as
the difference between the sales proceeds and the
carrying amount of the asset and is recognised in
profit or loss. The useful lives for various property,
plant and equipment are given below:

Intangible Asset and Amortisation

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

D Leases

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

Company as a lessee(i) Right-of-use assets

The Company recognises right-of-use assets
at the commencement date of the lease (i.e.,
the date the underlying asset is available
for use). Right-of-use assets are measured
at cost, less any accumulated depreciation
and impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost
of right-of-use assets includes the amount of
lease liabilities recognised, initial direct costs
incurred, and lease payments made at or
before the commencement date less any lease
incentives received. Right-of-use assets are
depreciated on a straight-line basis over the
shorter of the lease term and the estimated
useful lives of the underlying assets.

Right of use assets is evaluated for
recoverability whenever events or changes
in circumstances indicate that their carrying
amounts may not be recoverable. For
the purpose of impairment testing, the
recoverable amount (i.e. the higher of the fair
value less cost to sell and the value-in-use) is
determined on an individual asset basis unless

the asset does not generate cash flows that
are largely independent of those from other
assets. In such cases, the recoverable amount
is determined for the Cash Generating Unit
(CGU) to which the asset belongs.

(ii) Lease liabilities

At the commencement date of the lease, the
Company recognises lease liabilities measured
at the present value of lease payments to
be made over the lease term. The lease
payments include fixed payments (including
in substance fixed payments) less any lease
incentives receivable, variable lease payments
that depend on an index or a rate, and
amounts expected to be paid under residual
value guarantees.

Company measure the lease liability by (a)
increasing the carrying amount to reflect
interest on the lease liability; (b) reducing the
carrying amount to reflect the lease payments
made; and (c) remeasuring the carrying
amount to reflect any reassessment or lease
modifications.

(iii) Short term Lease:

Short term lease is that, at the commencement
date, has a lease term of 12 months or less. A
lease that contains a purchase option is not
a short-term lease. If the company elected
to apply short term lease, the lessee shall
recognise the lease payments associated
with those leases as an expense on either
a straight-line basis over the lease term or
another systematic basis.

Company as a lessor

Leases for which the Company is a lessor is
classified as finance or operating lease. Leases
in which the Company does not transfer
substantially all the risks and rewards incidental
to ownership of an asset are classified as
operating leases. Rental income arising is
accounted for on a straight-line basis over
the lease terms. Initial direct costs incurred
in negotiating and arranging an operating
lease are added to the carrying amount of the
leased asset and recognised over the lease
term on the same basis as rental income.

E Impairment

At the end of each reporting period, the Company

assesses, whether there is any indication that an

asset may be impaired. If any such indication exists,
the recoverable amount of the asset is estimated
in order to determine the extent of the impairment
loss (if any).

Recoverable amount is the higher of fair value less
costs of disposal and value in use.

When it is not possible to estimate the recoverable
amount of an individual asset, the Company
estimates the recoverable amount of the cash¬
generating unit to which the asset belongs. When
a reasonable and consistent basis of allocation can
be identified, corporate assets are also allocated
to individual cashgenerating units, or otherwise
they are allocated to the smallest Company of
cash-generating units for which a reasonable and
consistent allocation basis can be identified.

In assessing value in use, the estimated future cash
flows are discounted to their present value using
a pre-tax discount rate that reflects current market
assessments of the time value of money and the
risks specific to the asset. In determining fair value
less costs of disposal, recent market transactions
are taken into account. If no such transactions can
be identified, an appropriate valuation model is
used.

The Company bases its impairment calculation on
detailed budgets and forecast calculations, which
are prepared separately for each of the Company''s
cash generating unit (CGU).

If the recoverable amount of an asset (or
cashgenerating unit) is estimated to be less
than its carrying amount, the carrying amount
of the asset (or cashgenerating unit) is reduced
to its recoverable amount. An impairment loss is
recognised immediately in profit or loss. When
an impairment loss subsequently reverses, the
carrying amount of the asset (or a cashgenerating
unit) is increased to the revised estimate of its
recoverable amount, but so that the increased
carrying amount does not exceed the carrying
amount that would have been determined had no
impairment loss been recognised for the asset (or
cash-generating unit) in prior years. A reversal of
an impairment loss is recognised immediately in
profit or loss.

Intangible assets with indefinite useful lives and
intangible assets not yet available for use are
tested for impairment at least annually, and
whenever there is an indication that the asset
may be impaired. In assessing value in use, the
estimated future cash flows are discounted to their
present value using a pre-tax discount rate that
reflects current market assessments of the time

value of money and the risks specific to the asset
for which the estimates of future cash flows have
not been adjusted.

F Financial instruments

A financial instrument is any contract that gives
rise to asset of one entity and a financial liability
or equity instrument of another entity. Financial
instruments also include derivative contracts
such as foreign currency forward contracts, cross
currency interest rate swaps, interest rate swaps
and currency options; and embedded derivatives
in the host contract.

Financial AssetsInitial recognition and measurement

All financial assets are recognised 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 market place
(regular way trades) are recognized on the trade
date, i.e., the date that the company commits to
purchase or sell the asset.

Purchases or sales of financial assets that require
delivery of assets within a time frame established
by regulation or convention in the market place
(regular way trades) are recognized on the trade
date, i.e., the date that the company commits to
purchase or sell the asset.

Classifications

The Company classifies its financial assets as
subsequently measured at either amortised cost
or fair value through other comprehensive income
(FVOCI) or fair value through Profit and Loss
Account (FVTPL) on the basis of either Company''s
business model for managing the financial assets
or Contractual cash flow characteristics of the
financial assets.

Business model assessment

The company makes an assessment of the objective
of a business model in which an asset is held at
an instrument level because this best reflects the
way the business is managed and information is
provided to management.

Debt instruments at amortised cost

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

- It is held within a business model whose
objective is to hold assets in order to collect
contractual cash flows.

- The contractual terms of the financial asset
represent contractual cash flows that are
solely payments of principal and interest.

After initial measurement, such financial assets
are subsequently measured at amortised cost
using the Effective Interest Rate (''EIR'') method.
Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR
amortisation is included as finance income in the
profit or loss. The losses arising from mpairment
are recognised in the profit or loss.

Debt instrument at fair value through Other
Comprehensive Income (FVOCI)

Debt instruments with contractual cash flow
characteristics that are solely payments of principal
and interest and held in a business model whose
objective is achieved by both collecting contractual
cash flows and selling financial assets are classified
to be measured at FVOCI.

Debt instrument at fair value through profit
and loss (FVTPL)

Any debt instrument, which does not meet the
criteria for categorization as at amortized cost or
as FVOCI, is classified as at FVTPL.

In addition, the company may elect to classify a
debt instrument, which otherwise meets amortized
cost or FVOCI criteria, as at FVTPL. However,
such election is allowed only if doing so reduces
or eliminates a measurement or recognition
inconsistency referred to as ''accounting
mismatch'').

Debt instruments included within the FVTPL
category are measured at fair value with all
changes recognized in the profit and loss.

Equity Instruments

All equity instruments in scope of Ind AS 109
are measured at fair value and all changes in fair
value are recorded in FVTPL. On initial recognition
an equity investment that is not held for trading,
the Company may irrevocably elect to present

subsequent changes in fair value in OCI and
fair value changes on the instrument, excluding
dividends, are recognized in the OCI. There is no
recycling of the amounts from OCI to statement
of profit and loss, even on sale of investment.
However, the Company may transfer the
cumulative gain or loss within equity. This election
is made on an investment-by-investment basis.

All other Financial Instruments are classified as
measured at FVTPL

Derecognition of financial assets

A financial asset (or, where applicable, a part of
a financial asset or part of a Company of similar
financial assets) is primarily derecognised (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 (a) the company
has transferred substantially all the risks and
rewards of the asset, or (b) the company has
neither transferred nor retained substantially
all the risks and rewards of the asset, but has
transferred control of the asset.

When the company has transferred its rights to
receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards
of ownership. When it has neither transferred nor
retained substantially all of the risks and rewards of
the asset, nor transferred control of the asset, the
company continues to recognize the transferred
asset to the extent of the company''s continuing
involvement. In that case, the company also
recognizes an associated liability. The transferred
asset and the associated liability are measured on
a basis that reflects the rights and obligations that
the company has retained.

Continuing involvement that takes the form of a
guarantee over the transferred asset is measured
at the lower of the original carrying amount of the
asset and the maximum amount of consideration
that the company could be required to repay.

On derecognition of a financial asset, the
difference between the carrying amount of the

asset (or the carrying amount allocated to the
portion of the asset derecognised) and the sum
of (i) the consideration received (including any
new asset obtained less any new liability assumed)
and (ii) any cumulative gain or loss that had been
recognised in OCI is recognised in profit or loss.

Impairment of financial assets

The Company assesses on a forward looking basis
the expected credit losses associated with its
assets carried at amortised cost and at FVOCI.

For recognition of impairment loss on other
financial assets and risk exposure, the Company
determines that whether there has been a
significant increase in the credit risk since initial
recognition. If credit risk has not increased
significantly, 12-month ECL is used to provide
for impairment loss. However, if credit risk has
increased significantly, lifetime ECL is used. If, in a
subsequent period, credit quality of the instrument
improves such that there is no longer a significant
increase in credit risk since initial recognition, then
the entity revert to recognizing impairment loss
allowance based on 12 month ECL.

Lifetime ECL are the expected credit losses resulting
from all possible default events over the expected
life of a financial instrument. The 12 -month ECL
is a portion of the lifetime ECL which results from
default events on a financial instrument that are
possible within 12 months after the reporting date.

With regard to trade receivable, the Company
applies the simplified approach as permitted by
Ind AS 109, Financial Instruments, which requires
expected lifetime losses to be recognised from the
initial recognition of the trade receivables.

Financial liabilitiesInitial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, amortised cost, as
appropriate.

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

Subsequent measurement

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

Financial Liabilities measured at amortised cost

After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and
losses are recognised in profit or loss when the
liabilities are derecognised as well as through the
EIR amortisation process.

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

Financial liabilities at fair value through profit
or loss

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

Gains or losses on liabilities held for trading are
recognised in the profit or loss.

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

Derecognition of financial liabilities

The company derecognises a financial liability
when its contractual obligations are discharged or
cancelled, or expire.

Reclassification of financial assets

The company determines classification of financial
assets and liabilities on initial recognition. After
initial recognition, no reclassification is made
for financial assets which are equity instruments
and financial liabilities. For financial assets which
are debt instruments, a reclassification is made
only if there is a change in the business model
for managing those assets. Changes to the
business model are expected to be infrequent.

The company''s senior management determines
change in the business model as a result of external
or internal changes which are significant to the
company''s operations. Such changes are evident
to external parties. A change in the business
model occurs when the company either begins or
ceases to perform an activity that is significant to
its operations. If the company reclassifies financial
assets, it applies the reclassification prospectively
from the reclassification date which is the first day
of the immediately next reporting period following
the change in business model. The company does
not restate any previously recognized gains, losses
(including impairment gains or losses) or interest.

Offsetting of financial instruments

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

G InvestmentsInvestment in Subsidiaries

The investment in subsidiaries are carried at
cost as per IND AS 27. The Company regardless
of the nature of its involvement with an entity
(the investee), determines whether it is a parent
by assessing whether it controls the investee.
The Company controls an investee when it is
exposed, or has rights, to variable returns from its
involvement with the investee and has the ability
to affect those returns through its power over the
investee.Investments are accounted in accordance
with IND AS 105 when they are classified as held
for sale. On disposal of investment, the difference
between its carrying amount and net disposal
proceeds is charged or credited to the statement of
profit and loss. Such non-current assets classified
as held for sale are measured at the lower of their
carrying amount and fair value less costs to sell
. Any expected loss is recognised immediately in
the statement of profit and loss.

H Employee benefitsShort term employee benefits

Short-term employee benefits are expensed as the
related service is provided. A liability is recognised
for the amount expected to be paid if the Company
has a present legal or constructive obligation
to pay this amount as a result of past service
provided by the employee and the obligation can
be estimated reliably.

Accumulated compensated absences which

are expected to be settled wholly within twelve
months after the end of the period in which the
employees render the related service are treated
as short-term benefits. The Company measures the
expected cost of such absences as the additional
amount that it expects to pay as a result of the
unused entitlement that has accumulated at the
reporting date.

Defined contribution plans

Obligations for contributions to defined
contribution plans are expensed as the related
service is provided. The company has following
defined contribution plans:

(i) Provident fund

The Company makes specified monthly
contributions towards Provident Fund and
Employees State Insurance Corporation
(''ESIC''). The contribution is recognized as an
expense in the Statement of Profit and Loss
during the period in which employee renders
the related service.

Defined benefit plans

The company''s net obligation in respect of
defined benefit plans is calculated separately
for each plan by estimating the amount of
future benefit that employees have earned in
the current and prior periods, discounting that
amount and deducting the fair value of any
plan assets.

The calculation of defined benefit obligations
is performed annually by a qualified actuary
using the projected unit credit method. When
the calculation results in a potential asset for
the company, the recognised asset is limited
to the present value of economic benefits
available in the form of any future refunds from
the plan or reductions in future contributions
to the plan. To calculate the present value
of economic benefits, consideration is
given to any applicable minimum funding
requirements.

Remeasurement of the net defined benefit
liability, which comprise actuarial gains and
losses, the return on plan assets (excluding
interest) and the effect of the asset ceiling
(if any, excluding interest), are recognised
immediately in Other Comprehensive Income.
Net interest expense (income) on the net
defined liability (assets) is computed by
applying the discount rate, used to measure
the net defined liability (asset), to the net
defined liability (asset) at the start of the

financial year after taking into account any
changes as a result of contribution and
benefit payments during the year. Net interest
expense and other expenses related to defined
benefit plans are recognised in profit or loss.

When the benefits of a plan are changed or
when a plan is curtailed, the resulting change
in benefit that relates to past service or the
gain or loss on curtailment is recognised
immediately in profit or loss. The company
recognises gains and losses on the settlement
of a defined benefit plan when the settlement
occurs

The company has following defined benefit
plans:

Gratuity

The company provides for its gratuity liability
based on actuarial valuation of the gratuity
liability as at the Balance Sheet date, based
on Projected Unit Credit Method, carried out
by an independent actuary and contributes
to the Gratuity Trust fund formed by the
Company. The contributions made are
recognized as plan assets. The defined benefit
obligation as reduced by fair value of plan
assets is recognized in the Balance Sheet.
Remeasurements are recognized in the Other
Comprehensive Income, net of tax in the year
in which they arise.

Other long-term employee benefits

The Company''s net obligation in respect of
long-term employee benefits is the amount
of future benefit that employees have earned
in return for their service in the current and
prior periods. That benefit is discounted to
determine its present value. Re-measurements
are recognised in profit or loss in the period in
which they arise.

The company has following long term
employment benefit plans:

Leave Encashment

Leave encashment is payable to eligible
employees at the time of retirement. The
liability for leave encashment, which is a
defined benefit scheme, is provided based
on actuarial valuation as at the Balance Sheet
date, based on Projected Unit Credit Method,
carried out by an independent actuary.

I Employee Benefits

(i) Post-employment benefit plans

Contributions to defined contribution
retirement benefit schemes are recognised
as expense when employees have rendered
services entitling them to such benefits.

For defined benefit schemes, the cost of
providing benefits is determined using the
Projected Unit Credit Method, with actuarial
valuations being carried out at each balance
sheet date. Actuarial gains and losses are
recognised in full in the statement of profit
and loss for the period in which they occur.
Past service cost is recognised immediately to
the extent that the benefits are already vested,
or amortised on a straight-line basis over the
average period until the benefits become
vested.

The retirement benefit obligation recognised
in the balance sheet represents the present
value of the defined benefit obligation as
adjusted for unrecognised past service cost,
and as reduced by the fair value of scheme
assets. Any asset resulting from this calculation
is limited to the present value of available
refunds and reductions in future contributions
to the scheme.

(ii) Other employee benefits

The undiscounted amount of short-term
employee benefits expected to be paid
in exchange for the services rendered by
employees is recognised during the period
when the employee renders the service. These
benefits include compensated absences such
as paid annual leave, overseas social security
contributions and performance incentives.

Compensated absences which are not
expected to occur within twelve months after
the end of the period in which the employee
renders the related services are recognised
as an actuarially determined liability at the
present value of the defined benefit obligation
at the balance sheet date.

Revenue recognition

Revenue from contracts with customers is
recognized when control of the goods or services
are transferred to the customer at an amount that
reflects the consideration to which the Company
expects to be entitled inexchange for those goods
or services. The Company collects GST on behalf
of the government and, therefore, it is not an
economic benefit flowing to the Company. Hence,
it is excluded from revenue.

Revenue from the sale of goods is recognized

ANNUAL

at the point in time when control of the asset is
transferred to the customer, generally on the
delivery of the goods and there are no unfulfilled
obligations.

The Company considers whether there are
other promises in the contract that are separate
performance obligations to which a portion of
the transaction price needs to be allocated. In
determining the transaction price, the Company
considers the effects of variable consideration, the
existence of significant financing component, non¬
cash component and consideration payable to the
customer like return, allowances, trade discounts
and volume rebates.

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.

Revenue from service related activities is
recognized as and when services are rendered and
on the basis of contractual terms with the parties.

K Warranty obligations

The Company generally provides for warranties
for general repair of defects that existed at the
time of sale. These warranties are assurance-type
warranties under Ind AS 115, which are accounted
for under Ind AS 37

L Other Income(i) Interest Income

For all debt instruments measured either at
amortised cost or at fair value through other
comprehensive income, interest income is
recorded using the effective interest rate (EIR).
EIR is the rate that exactly discounts period,
where appropriate, to the gross carrying
amount of the financial asset or to the
amortised cost of a financial liability. When
calculating the effective interest rate, the
Company estimates the expected cash flows
instrument.

(ii) Dividend income

Dividend income is recognised when the right
to receive payment is established, which is
generally when shareholders approve the
dividend.

M Taxation

Income tax expense represents the sum of the tax

currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable
profit for the year. Taxable profit differs from profit
before tax as reported in the statement of profit
and loss because of items of income or expense
that are taxable or deductible in other years and
items that are never taxable or deductible. The
Company''s current tax is calculated using tax rates
and laws that have been enacted or substantively
enacted by the end of the reporting period.

Current income tax relating to items recognised
outside profit or loss is recognised outside profit
or loss (either in other comprehensive income
or in equity). Current tax items are recognised in
correlation to the underlying transaction either in
OCI or directly in equity. Management periodically
evaluates positions taken in the tax returns with
respect to situations in which applicable tax
regulations are subject to interpretation and
establishes provisions where appropriate.

Deferred tax

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

Deferred tax liabilities are recognised for all taxable
temporary differences, except:

(i) When the deferred tax liability arises from
the initial recognition of goodwill or an
asset or liability in a transaction that is not a
business combination and, at the time of the
transaction, affects neither the accounting
profit nor taxable profit or loss.

(ii) In respect of taxable temporary differences
associated with investments in subsidiaries,
associates and interests in joint ventures,
when the timing of the reversal of the
temporary differences can be controlled and
it is probable that the temporary differences
will not reverse in the foreseeable future.

Deferred tax assets are recognised for all
deductible temporary differences, the carry
forward of unused tax credits and any unused tax
losses. Deferred tax assets are recognised to the
extent that it is probable that taxable profit will be
available against which the deductible temporary
differences, and the carry forward of unused tax
credits and unused tax losses can be utilised,
except:

(i) When the deferred tax asset relating to the

deductible temporary difference arises from
the initial recognition of an asset or liability in a
transaction that is not a business combination
and, at the time of the transaction, affects
neither the accounting profit nor taxable
profit or loss.

(ii) In respect of deductible temporary differences
associated with investments in subsidiaries,
associates and interests in joint ventures,
deferred tax assets are recognised only to the
extent that it is probable that the temporary
differences will reverse in the foreseeable
future and taxable profit will be available
against which the temporary differences can
be utilised.

Deferred tax relating to items recognised outside
profit or loss is recognised outside profit or loss
(either in other comprehensive income or in
equity). Deferred tax items are recognised in
correlation to the underlying transaction either in
other comprehensive income or directly in equity.

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

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

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

Current and deferred tax for the year

Current and deferred tax are recognised in profit
or loss, except when they relate to items that
are recognised in other comprehensive income
or directly in equity, in which case, the current
and deferred tax are also recognised in other
comprehensive income or directly in equity
respectively.

N Foreign currency transactions

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

Monetary assets and liabilities denominated in

foreign currencies are translated into the functional
currency at the exchange rate at the reporting
date. Non-monetary assets and liabilities that
are measured at fair value in a foreign currency
are translated into the functional currency at the
exchange rate when the fair value was determined.
Non-monetary items that are measured based on
historical cost in a foreign currency are translated
at the exchange rate at the date of the transaction.
Foreign currency differences are generally
recognised in profit or loss.

The gain or loss arising on translation of
nonmonetary items measured at fair value is
treated in line with the recognition of the gain
or loss on the change in fair value of the item
(i.e., translation differences on items whose fair
value gain or loss is recognised in OCI or profit
or loss are also recognised in OCI or profit or loss,
respectively).

O Inventories

Inventories are measured at the lower of Cost and
Net Realizable Value. The cost of inventories is
based on the first in first-out formula, and includes
expenditure incurred in acquiring the inventories,
production or conversion costs and other costs
incurred in bringing them to their present location
and condition. In the case of manufactured
inventories and work in progress, costs include an
appropriate share of fixed production overheads
based on normal operating capacity.

Net realizable value is the estimated selling price in
the ordinary course of business, less the estimated
costs of completion and selling expenses. The Net
realisable value of work in progress is determined
with reference to the selling prices of related
finished products.

Raw materials, components and other supplies
held for use in the production of finished products
are not written down below cost except in cases
where material prices have declined and it is
estimated that the cost of the finished products
will exceed their net realizable value.

The comparison of cost and net realizable value is
made on an item-by-item basis