The Indian Wood Products Company Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

2. Material Accounting Policies

This note provides a list of the material accounting policies
adopted in preparation of these Financial Statements.
These policies have been consistently applied to all the
years presented unless otherwise stated.

The financial statements were approved by Board of
Directors on 29th May, 2025.

a) Basis of Preparation:

I. Compliance with IND AS:

These Financial Statements comply in all material
aspects with Indian Accounting Standards (IND AS)
notified under section 133 of the Companies Act, 2013
(the Act) read with rule 4 of the Companies (Indian
Accounting standards) Rules, 2015 & Companies
(Indian Accounting Standards) Amendment Rules 2016.
The Company adopted Ind AS from 1st April, 2017.

II. Historical cost convention:

The Financial Statements have been prepared on a
historical cost basis, except for the following:

i. Land which is revalued as on 1st April’ 16

ii. Certain Financial Assets and Liabilities (including
derivative instruments) and contingent
consideration that are measured at fair value; and

iii. Defined Benefit Plan Assets measured at fair value;

b) Property, Plant and Equipment

Freehold land is carried at the revalued figure as per
the Valuation done by the management based on circle
rate of 1st April’16. All the other items of Property,
Plant and Equipment are stated at cost of acquisition,
less accumulated depreciation/amortisation and
impairments, if any, cost of acquisition includes taxes,
duties, freight and other incidental expenses related to
acquisition and installation.

Indirect expenses during construction period, which are
required to bring the asset in the condition for its intended
use by the Company and are directly attributable to
bringing the asset to its position, are also capitalized.

Subsequent costs are included in the asset’s carrying
amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits
associated with the item will flow to the Company and
the cost of the item can be measured reliably. The
carrying amount of any component accounted for as a
separate asset is derecognized upon disposal or when
no future economic benefits are expected from its use or
disposal. All other repairs & maintenance are charged
to profit or loss during the reporting period in which they
are incurred.

Capital work-in-progress comprises cost of fixed assets
that are not yet ready for their intended use at the year
end.

Depreciation and amortization:

Depreciation is calculated using the straight-line method
to allocate cost of Property, Plant and Equipment, net
of residual values, over their estimated useful lives as
follows:
*Based on management evaluation, the useful lives
as given above best represent the period over which
the Management expects to use these Assets. Hence,
the useful lives of for these Assets is different from the
useful lives as prescribed under Part C of Schedule II of
the Companies Act, 2013.

Depreciation on additions / deletions during the year is
provided from the date on which the asset is capitalized
up to the month in which the asset is disposed off.

An asset’s carrying amount is written down immediately
to its recoverable amount if the asset’s carrying amount
is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by
comparing proceeds with carrying amount. These
are included in Statement of Profit and Loss within other
gains/(losses).

The Company reviews the residual values, useful
lives and methods of depreciation of plant, property
and equipment at each financial year end and adjusts
prospectively, if appropriate.

c) Operating Cycle

All assets and liabilities have been classified as current
and noncurrent as per the Company’s normal operating
cycle and other criteria as set out in the Division II of
Schedule III to the Companies Act, 2013. Based on
the nature of products and time between acquisition of
assets for processing and their realization in cash and
cash equivalents, the Company has ascertained its
operating cycle as 12 months for the purpose of current
or non-current classification of assets and liabilities.

d) Financial assets:

i. Classification:

The Company classifies its financial assets in the
following measurement categories:

a. those to be measured subsequently at fair value
(either through other comprehensive income, or
through profit or loss), and

b. those measured at amortized cost.

ii. Measurement:

At initial recognition, the Company measures a financial
asset at its fair value plus, in the case of a financial asset
not at fair value through profit or loss, transaction costs
that are directly attributable to the acquisition of the
financial asset.

Transaction costs of financial assets carried at fair value
through profit or loss are expensed in profit or loss.

iii. Impairment of financial assets:

The Company assesses if there is any significant increase
in credit risk pertaining to the assets and accordingly
creates necessary provisions through Expected Credit
Loss Method, wherever required.

e) Foreign Currency Transactions and Translation:
I. Functional and presentation currencies:

Items included in the Financial Statements of the
Company are measured using the currency of the

primary economic environment in which the entity
operates (‘the functional currency’). The Financial
Statements are presented in INR which is the functional
and presentation currency for the company.

II. Transactions & Balances:

Foreign Currency Transactions are translated into the
functional currency at the Exchange Rates on the date
of transaction. Foreign exchange Gains and Losses
resulting from settlement of such transactions and from
translation of monetary assets and liabilities at the
closing rates are generally recognized in the Statement
Profit and Loss.

Non-monetary foreign currency items are carried at cost
and accordingly the investments in shares of foreign
Joint Venture are expressed in Indian currency at the
rate of exchange prevailing at the time when the original
investments are made or Fair Values determined.

f) Revenue Recognition

With effect from 1 April 2018, the Company has adopted
IND AS 115 ‘Revenue from Contracts with Customers’
which introduces a new five-step approach to measuring
and recognising revenue from contracts with customers.
Under IND AS 115, revenue is recognised on satisfaction
of performance obligation at an amount that reflects
the consideration to which an entity expects to be
entitled in exchange for transferring goods or services
to a customer. The Company has elected to apply the
Cumulative catch up method in adopting IND AS 115.
In accordance with the cumulative catch-up transition
method, the comparatives have not been retrospectively
adjusted. The effect on adoption of Ind AS 115 was
insignificant. Applying the practical expedient as given
in Ind AS 115, the Company has not disclosed the
remaining performance obligation related disclosures.
Revenue is recognised to the extent that it is probable

that the economic benefits will flow to the Company
and can be reliably measured. The Company bases its
estimates on historical results, taking into consideration
the type of customer, the type of transaction and the
specifics of each arrangement.

Sale of goods:

Revenue is recognized on satisfaction of performance
obligation at an amount that reflects the transaction
price (net of variable consideration) allocated to that
performance obligation. The transaction price of the
goods sold is net of variable consideration on account of
various discounts and schemes offered by the Company
as part of the contract.

Interest income:

Interest income is recognized on a time proportion basis
taking into account the amount outstanding and the
applicable effective interest rate (EIR). EIR is the rate that
exactly discounts the estimated future cash payments or
receipts over the expected life of a financial liability or a
financial asset to their gross carrying amount. Interest
Income are included under the head “Other Income” in
the Statement of Profit and Loss.

Disaggregation of revenue:

Note 29 presents disaggregated revenues from contracts
with customers for the year ended March 31, 2025 by
performance obligation. The Company believes that this
disaggregation best depicts how the nature, amount,
timing and uncertainty of our revenues and cash flows
are affected by industry, market and other economic
factors.

g) Inventories:

a. Raw Material, Stores and Spares are valued at
lower of cost and net realizable value.

b. Work-in-progress, Finished Goods are valued at
lower of cost and net realizable value.

c. Cost of work-in progress and finished goods
comprises direct materials, direct labour and an
appropriate proportion of variable and fixed
overhead expenditure, the latter being allocated on
the basis of normal operating capacity. Cost of
inventories also includes all other costs incurred in
bringing the inventories to their present location and
condition. Cost is assigned on the basis of weighted
average method.

h) Trade Receivables:

Trade receivables are initially recognized at transaction
price, and subsequently measured at amortized cost by
providing loss allowance at an amount equal to lifetime
expected credit losses.

The company recognizes loss allowance on trade
receivable, which does not contain a significant financing
component, using “simplified approach” at an amount
equal to Lifetime Expected Credit Loss (ECL) considering
the risk or probability that a credit loss may occur, even if
the possibility of a credit loss occurring is very low, time
value of money based on reasonable and supportable
information that are available. Loss allowances on trade
receivable are recognized in the Statement of Profit and
Loss within other expenses.

i) Trade and other payables:

These amounts represent liabilities for goods and
services provided to the Company prior to the end of
financial year which are unpaid. Trade and other payables
are presented as current liabilities unless payment is not
due within 12 months after the reporting period.

j) Borrowings:

Borrowings are initially recognised at fair value, net of

transaction costs incurred. Borrowings are subsequently
measured at amortised cost Effective Interest Method.
Any difference between the proceeds (net of transaction
costs) and the redemption amount is recognised in
Statement of Profit and Loss over the period of the
borrowings.

k) Income Taxes:

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

The current income tax charge is calculated on the
basis of the tax laws enacted or substantively enacted
at the end of the reporting period in the countries where
the company operate and generate taxable income.
Management periodically evaluates positions taken in
tax returns with respect to situations in which applicable
tax regulation is subject to interpretation. It establishes
provisions, where appropriate, on the basis of amounts
expected to be paid to the tax authorities.

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

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

in other comprehensive income or directly in equity,
respectively.

l) Borrowing Cost:

Borrowing costs that are directly attributable to the
acquisition or construction of a qualifying asset are
capitalised during the period of time that is required to
complete and prepare the asset for its intended use or
sale. Qualifying assets are assets that necessarily take a
substantial period of time to get ready for their intended
use or sale.Other borrowing costs are expensed out in
the Statement of Profit & Loss Account in the period in
which they are incurred.

m) Employee Benefits:

i. Short term Employee benefit Expenses:

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which the
employees render the related service are recognized
in respect of employees’ services upto the end of the
reporting and are measured at the amounts expected to
be paid when the liabilities are settled. The liabilities are
presented as current employee benefit obligations in the
balance sheet.

ii. Defined Contribution Plan - Provident fund:

Contribution to Provident fund is made at a predetermined
rate and charged to revenue on accrual basis.

iii. Defined Benefit Plan - Gratuity:

Liabilities with regard to the gratuity benefits payable
in future are determined by actuarial valuation at each
Balance Sheet date using the Projected Unit Credit
method and contributed to Employees Gratuity Fund.
Actuarial gains and losses arising from changes
in actuarial assumptions are recognized in other
comprehensive income and the Statement of Profit and
Loss in a subsequent period.

The company contributes to a Group Insurance - cum
- Gratuity Scheme with Life Insurance Corporation of
India towards meeting its gratuity obligation.

iv. Bonus and Production Linked Incentive:

The Company recognizes a liability and expenses
for bonus as per Bonus Act’1949. The Company also
recognizes a liability and expenses for Incentive Bonus
as per agreement entered into with the worker union.
The Company recognizes a provision where there is a
past practice that has created constructive obligations
and a reliable estimate of such obligations.

v. Leave encashment / Compensated absences:

The Company provides for the encashment of leave with
pay subject to certain rules. The employees are entitled
to accumulate leave subject to certain limits, for future
encashment / availment. The liability is provided at each
Balance Sheet date on the basis of an actuarial valuation
using the Projected Unit Credit method.

Actuarial gains and losses arising from changes in
actuarial assumptions are recognised in the Statement
of Profit and Loss.

The Company contributes to a Group Leave Encashment
Plan with Life Insurance Corporation of India towards
meeting its leave obligation.

Re-measurements, comprising of actuarial gains and
losses excluding amounts included in net interest on
the net defined benefit liability and the return on plan
assets (excluding amounts included in net interest
on the net defined benefit liability), are recognised
immediately in the balance sheet with a corresponding
debit or credit to be retained earnings through Other
Comprehensive Income in the period in which they
occur. Re-measurements are not reclassified to profit or
loss in subsequent periods.

---

Mar 31, 2024

2. Material Accounting Policies

This note provides a list of the material accounting policies adopted in preparation of these Financial Statements. These policies have been consistently applied to all the years presented unless otherwise stated.

The financial statements were approved by Board of Directors on 30th May, 2024.

a) Basis of Preparation:

I. Compliance with IND AS:

These Financial Statements comply in all material aspects with Indian Accounting Standards (IND AS) notified under section 133 of the Companies Act, 2013 (the Act) read with rule 4 of the Companies (Indian Accounting Standards) Rules, 2015 & Companies (Indian Accounting Standards) Amendment Rules 2016. The Company adopted Ind AS from 1st April, 2017.

II. Historical cost convention:

The Financial Statements have been prepared on a historical cost basis, except for the following:

i. Land which is revalued as on 1st April’16

ii. Certain Financial Assets and Liabilities (including derivative instruments) and contingent consideration that are measured at fair value; and

iii. Defined Benefit Plan Assets measured at fair value;

b) Property, Plant and Equipment

Freehold land is carried at the revalued figure as per the Valuation done by the management based on circle rate of 1st April’16. All the other items of Property, Plant and Equipment are stated at cost of acquisition, less accumulated depreciation/amortisation and impairments, if any, cost of acquisition includes taxes, duties, freight and other incidental expenses related to acquisition and installation.

Indirect expenses during construction period, which are required to bring the asset in the condition for its intended use by the Company and are directly attributable to bringing the asset to its position, are also capitalized.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will Low to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. All other repairs & maintenance are charged to profit or loss during the reporting period in which they are incurred.

Capital work-in-progress comprises cost of fixed assets that are not yet ready for their intended use at the year end.

Depreciation and amortization:

Depreciation is calculated using the straight-line method

to allocate cost of Property, Plant and Equipment, net of residual values, over their estimated useful lives as follows: *Based on management evaluation, the useful lives as given above best represent the period over which the Management expects to use these Assets. Hence, the useful lives of for these Assets Is different from the useful lives as prescribed under Part C of Schedule II of the Companies Act, 2013.

Depreciation on additions / deletions during the year is provided from the date on which the asset is capitalized up to the month in which the asset Is disposed off.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in Statement of Profit and Loss within other gains/(losses).

The Company reviews the residual values, useful lives and methods of depreciation of plant, property and equipment at each financial year end and adjusts prospectively, if appropriate.

c) Operating Cycle

All assets and liabilities have been classified as current and noncurrent as per the Company’s normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

d) Financial assets:

i. Classification:

The Company classifies its financial assets in the following measurement categories:

a. those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

b. those measured at amortized cost.

ii. Measurement:

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset.

Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

iii. Impairment of financial assets:

The Company assesses if there Is any significant increase in credit risk pertaining to the assets and accordingly creates necessary provisions through Expected Credit Loss Method, wherever required.

e) Foreign Currency Transactions and Translation: I. Functional and presentation currencies:

Items included in the Financial Statements of the Company are measured using the currency of the

primary economic environment in which the entity operates (‘the functional currency’). The Financial Statements are presented in INR which is the functional and presentation currency for the company.

II. Transactions & Balances:

Foreign Currency Transactions are translated into the functional currency at the Exchange Rates on the date of transaction. Foreign exchange Gains and Losses resulting from settlement of such transactions and from translation of monetary assets and liabilities at the closing rates are generally recognized in the Statement Profit and Loss.

Non-monetary foreign currency items are carried at cost and accordingly the investments in shares of foreign Joint Venture are expressed in Indian currency at the rate of exchange prevailing at the time when the original investments are made or Fair Values determined.

f) Revenue Recognition

With effect from 1 April 2018, the Company has adopted IND AS 115 ‘Revenue from Contracts with Customers’ which introduces a new five-step approach to measuring and recognising revenue from contracts with customers. Under IND AS 115, revenue is recognised on satisfaction of performance obligation at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The Company has elected to apply the Cumulative catch up method in adopting IND AS 115. In accordance with the cumulative catch-up transition method, the comparatives have not been retrospectively adjusted. The effect on adoption of Ind AS 115 was insignificant. Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related disclosures. Revenue is recognised to the extent that it is probable

that the economic benefits will Low to the Company and can be reliably measured. The Company bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

Sale of goods:

Revenue is recognized on satisfaction of performance obligation at an amount that reflects the transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of the goods sold is net of variable consideration on account of various discounts and schemes offered by the Company as part of the contract.

Interest income:

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of a financial liability or a financial asset to their gross carrying amount. Interest Income are included under the head “Other Income” in the Statement of Profit and Loss.

Disaggregation of revenue:

Note 29 presents disaggregated revenues from contracts with customers for the year ended March 31, 2024 by performance obligation. The Company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of our revenues and cash Lows are affected by industry, market and other economic factors.

g) Inventories:

a. Raw Material, Stores and Spares are valued at lower of cost and net realizable value.

b. Work-in-progress, Finished Goods are valued at lower of cost and net realizable value.

c. Cost of work-in progress and finished goods comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost of inventories also includes all other costs incurred in bringing the inventories to their present location and condition. Cost is assigned on the basis of weighted average method.

h) Trade Receivables:

Trade receivables are initially recognized at transaction price, and subsequently measured at amortized cost by providing loss allowance at an amount equal to lifetime expected credit losses.

The company recognizes loss allowance on trade receivable, which does not contain a significant financing component, using “simplified approach” at an amount equal to Lifetime Expected Credit Loss (ECL) considering the risk or probability that a credit loss may occur, even if the possibility of a credit loss occurring is very low, time value of money based on reasonable and supportable information that are available.

Loss allowances on trade receivable are recognized in the Statement of Profit and Loss within other expenses.

i) Trade and other payables:

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period.

j) Borrowings:

Borrowings are initially recognised at fair value, net of

transaction costs incurred. Borrowings are subsequently measured at amortised cost Effective Interest Method. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in Statement of Profit and Loss over the period of the borrowings.

k) Income Taxes:

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

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the company operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities.

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

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

in other comprehensive income or directly in equity, respectively

l) Borrowing Cost:

Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.Other borrowing costs are expensed out in the Statement of Profit & Loss Account in the period in which they are incurred.

m) Employee Benefits:

i. Short term Employee benefit Expenses:

Liabilities for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees’ services upto the end of the reporting and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

ii. Defined Contribution Plan - Provident fund:

Contribution to Provident fund is made at a predetermined rate and charged to revenue on accrual basis.

iii. Defined Benefit Plan - Gratuity:

Liabilities with regard to the gratuity benefits payable in future are determined by actuarial valuation at each Balance Sheet date using the Projected Unit Credit method and contributed to Employees Gratuity Fund. Actuarial gains and losses arising from changes in actuarial assumptions are recognized in other comprehensive income and the Statement of Profit and Loss in a subsequent period.

The company contributes to a Group Insurance - cum - Gratuity Scheme with Life Insurance Corporation of India towards meeting its gratuity obligation.

iv. Bonus and Production Linked Incentive:

The Company recognizes a liability and expenses for bonus as per Bonus Act’1949. The Company also recognizes a liability and expenses for Incentive Bonus as per agreement entered into with the worker union. The Company recognizes a provision where there is a past practice that has created constructive obligations and a reliable estimate of such obligations.

v. Leave encashment / Compensated absences:

The Company provides for the encashment of leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits, for future encashment / availment. The liability is provided at each Balance Sheet date on the basis of an actuarial valuation using the Projected Unit Credit method.

Actuarial gains and losses arising from changes in actuarial assumptions are recognised in the Statement of Profit and Loss.

The Company contributes to a Group Leave Encashment Plan with Life Insurance Corporation of India towards meeting its leave obligation.

Re-measurements, comprising of actuarial gains and losses excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to be retained earnings through Other Comprehensive Income in the period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent periods.

---

Mar 31, 2018

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2018

Note 1 - Background and Operations

The Indian Wood Products Company Limited (the Company) is a public company domiciled in India and was incorporated on 23rd December"1 919 under the provisions of the Companies Act, 1913. The Company is listed on two recognised stock exchanges in India, i.e, BSE Ltd and Calcutta Stock Exchange (CSE). The registered office of the company is at Bombay Mutual Building, 9,Brabourne Road,7th Floor,Kolkata-700001 and has a head office and works at atnagar, Bareily(U.P). The company is primarily engaged in the manufacturing of Katha in India. Registered Address of other places where manufacturing activities are carried on are disclosed suitably in this report elsewhere.

Note 2 - Significant Accounting Policies

This note provides a list of the significant accounting policies adopted in preparation of these Financial Statements. These policies have been consistently applied to all the years presented unless otherwise stated.

The financial statements were approved by Board of Directors on 30th May'' 2018.

a. Basis of Preparation:

i. Compliance with IND AS:

These Financial Statements comply in all material aspects with Indian Accounting Standards (IND AS) notified under section 133 of the Companies Act, 2013 (the Act) read with rule 4 of the Companies (Indian Accounting standards) Rules, 2015 & Companies (Indian Accounting Standards) Amendment Rules 2016.

These Financial Statements forthe year ended 31st March, 2018 are the first financials with comparatives prepared under IND AS. For all periods up to and including the year ended 31st March''17, the company has prepared its financial statements in accordance with the generally accepted accounting principles (hereinafter referred to as ''Previous GAAP'') used for its statutory reporting requirement in India immediately before adopting IND AS.

The date of transition to Ind AS is 1st April, 2016. Refer Note No. 42 forthe first time adoption exemptions availed by the company.

Reconciliations and explanations for the effect of the transition from Previous GAAP to Ind AS on the Company''s Balance Sheet, Statement of Profit and Loss and Statement of Cash Flows are provided in Note.

ii. Historical cost convention:

The Financial Statements have been prepared on a historical cost basis, except forthe following:

a) Land which is revalued as on 1st April''16

b) Certain Financial Assets and Liabilities (including derivative instruments) and contingent consideration that are measured at fair value; and

c) Defined Benefit Plan Assets measured at fair value;

b. Property, Plant and Equipment

Freehold land is carried at the revalued figure as per the Valuation done by the management based on circle rate of 1st April''16 (Refer Note 42(a)). All the other items of Property, Plant and Equipment are stated at cost of acquisition, less accumulated depreciation/amortisation and impairments, if any, cost of acquisition includes taxes, duties, freight and other incidental expenses related to acquisition and installation. Indirect expenses during construction period, which are required to bring the asset in the condition for its intended use by the Company and are directly attributable to bringing the asset to its position, are also capitalized.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as

appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. All other repairs & maintenance are charged to profit or loss during the reporting period in which they are incurred.

Capital work-in-progress comprises cost of fixed assets that are not yet ready for their intended use at the year end.

Transition to IND AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its Property, Plant and Equipment recognised as at 1st April''16 measured as per the previous GAAP and use that carrying value as the deemed cost of the Property, Plant and Equipment, except for land which has been taken on the revalued amount as on 1st April''16.

Depreciation and amortization:

Depreciation is calculated using the straight-line method to allocate cost of Property, Plant and Equipment, net of residual values, over their estimated useful lives as follows:

Asset Class	Useful Life (In years)
Building	3 to 60
Plant & Machinery*	8 to 15
Electric Installations*	10to15
Laboratory Apparatus	10
Motor Vehicles*	8 to 10
Computers*	3 to 8
Office Equipments*	3 to 5
Furniture and Fixtures	10

*Based on management evaluation, the useful lives as given above best represent the period over which the Management expects to use these Assets. Hence, the useful lives of for these Assets is different from the useful lives as prescribed under Part C of Schedule II of the Companies Act, 2013.

Depreciation on additions / deletions during the year is provided from the date on which the asset is capitalized up to the month in which the asset is disposed off.

An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in Statement of Profit and Loss within other gains/(losses).

The Company reviews the residual values, useful lives and methods of depreciation of plant, property and equipment at each financial year end and adjusts prospectively, if appropriate.

Segment Reporting:

The Company''s operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. The analysis of geographical segments is based on the areas in which the customers of the Company are located.

Segment Accounting Policies

The Company prepares its segment information in conformity with the accounting policies that are adopted for preparing and presenting the financial statements of the Company as a whole.

d. Financial assets:

i. Classification:

The Company classifies its financial assets in the following measurement categories:

a) those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

b) those measured at amortised cost. ii. Measurement:

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset.

Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

iii. Impairment of financial assets:

The Company assesses if there is any significant increase in credit risk pertaining to the assets and accordingly creates necessary provisions through Expected Credit Loss Method, wherever required.

iv. Derecognition of financial assets:

A financial asset is derecognised only when

i) the Company has transferred the rights to receive the cash flows from the financial asset or

ii) the Company retains the contractual rights to receive the cash flows of the financial assets, but transfers substantially all the risks and rewards of the Assets.

e. Foreign Currency Transactions and Translation: i. Functional and presentation currencies:

Items included in the Financial Statements of the Company are measured using the currency of the primary economic environment in which the entity operates (''the functional currency''). The Financial Statements are presented in INR which is the functional and presentation currency for the company.

ii. Transactions & Balances:

Foreign Currency Transactions are translated into the functional currency at the Exchange Rates on the date of transaction. Foreign exchange Gains and Losses resulting from settlement of such transactions and from translation of monetary assets and liabilities at the closing rates are generally recognized in the Statement of Profit and Loss.

Non-monetary foreign currency items are carried at cost and accordingly the investments in shares of foreign Joint Venture are expressed in Indian currency at the rate of exchange prevailing at the time when the original investments are made or Fair Values determined.

f. Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are inclusive of excise duty and net of returns, trade allowances, rebates, Value Added Taxes, Goods and Service Tax and amounts collected on behalf of third parties.

The Company recognizes revenue when the amount can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Company''s activities as described below. The Company bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

Sale of goods:

Timing of recognition: Sale of goods is recognized when substantial risks and rewards of ownership are passed to the customers, depending on individual terms, and are stated net of trade discounts, rebates, incentives, subsidy, sales tax and value added tax except excise duty.

Interest income

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of a financial liability or a financial asset to their gross carrying amount. Interest Income are included under the head "Other Income" in the Statement of Profit and Loss.

g. Inventories:

a) Raw Material, Stores and Spares are valued at lower of cost and net realizable value.

b) Work-in-progress, Finished Goods are valued at lower of cost and net realizable value.

c) Cost of work-in progress and finished goods comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost of inventories also includes all other costs incurred in bringing the inventories to their present location and condition. Cost is assigned on the basis of weighted average method.

h. Trade Receivables:

Trade Receivables are recognised initially at fair value and subsequently measured at amortised cost using Effective Interest Method.

i. Trade and other payables:

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period.

j. Borrowings:

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost Effective Interest Method. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in Statement of Profit and Loss over the period of the borrowings.

k. Income Taxes

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

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the company operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, using the Balance Sheet method, on temporary differences arising

between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

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

I. Borrowing Cost:

Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Other borrowing costs are expensed out in the Statement of Profit & Loss Account in the period in which they are incurred.

m. Leases

A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership to the Company is classified as a finance lease. All other leases are operating lease.

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement. For arrangements entered into prior to 1 April 2016, the Company has determined whether the arrangement contains lease on the basis of facts and circumstances existing on the date of transition.

Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis over the lease term, unless the payments are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases.

n. Employee Benefits:

i. Short term Employee benefit Expenses:

Liabilities for wages and salaries, including non- monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services upto the end of the reporting and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

ii. Defined Contribution Plan - Provident fund:

Contribution to Provident fund is made at a predetermined rate and charged to revenue on accrual basis.

iii. Defined Benefit Plan - Gratuity:

Liabilities with regard to the gratuity benefits payable in future are determined by actuarial valuation at each Balance Sheet date using the Projected Unit Credit method and contributed to Employees Gratuity Fund. Actuarial gains and losses arising from changes in actuarial assumptions are recognized in other comprehensive income and the Statement of Profit and Loss in a subsequent period.

The company contributes to a Group Insurance - cum - Gratuity Scheme with Life Insurance Corporation of India towards meeting its gratuity obligation.

iv. Bonus and Production Linked Incentive:

The Company recognizes a liability and expenses for bonuses as per Bonus Act''1949. The Company also recognizes a liability and expenses for Incentive Bonuses as per agreement entered into with the worker union. The Company recognizes a provision where there is a past practice that has created constructive obligations and a reliable estimate of such obligations.

v. Leave encashment / Compensated absences:

The Company provides for the encashment of leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits, for future encashment/availment. The liability is provided based on the number of days of unutilized leave at each Balance Sheet date on the basis of an independent actuarial valuation. Actuarial gains and losses arising from changes in actuarial assumptions are recognised in the Statement of Profit and Loss.

o. Provisions and Contingent Liabilities and Assets:

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

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

A contingent asset is disclosed, where an inflow of economic benefits is probable. An entity shall not recognise a contingent asset unless the recovery is virtually certain.

p. Cash and Cash Equivalents:

For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short- term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

q. Impairment of Assets:

Assets are assessed by the Company at each reporting period whether there is an indication of impairment that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which asset''s carrying amount exceeds its recoverable amount. The recoverable amount is higher of an asset''s fair value less cost of disposal and value in use.

r. Earnings Per Share:

Basic earnings per share: Basic earnings per share is calculated by dividing: i) the profit attributable to owners of the Company,

ii) by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year.

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

i) the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

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

s. Dividend:

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the company, on or before the end of the reporting period but not distributed at the end of the reporting period.

t. Rounding off:

All amounts disclosed in the financial statement and notes have been rounded off to the nearest Lakhs, unless otherwise stated.

u. Critical Estimates and Judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Company''s accounting policies. This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The preparation of the financial statements in conformity with GAAP requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. These estimates and associated assumptions are based on historical experience and management''s best knowledge of current events and actions the Company may take in future.

Information about critical estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities are:

i) Impairment of financial assets (including trade receivable) ii) Estimation of defined benefit iii) Estimation of current tax expenses and payable iv) Estimation of provisions and contingencies v. Applicability of Amendments to Ind-AS 7:

The amendments to Ind-AS 7 are applicable from April 1, 2017. It requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement.

The requirements of the amendment and their effect on the financial statements is shown in the Cash Flow.

---

Mar 31, 2017

(a) Basis of preparation of Financial Statements

The financial statements are prepared and presented on accrual basis under the historical costs convention, in accordance with the generally accepted accounting principles in India and in accordance with relevant provisions of the Companies Act, 1956, Companies Act 2013 and in conformity with the applicable accounting standards under the Act.

(b) Fixed Assets :

Fixed Assets are stated at cost of acquisition inclusive of inward freight, duties and taxes and incidental expenses related to acquisition.

Depreciation on fixed assets is provided from the date of capitalization under the straight-line method at the rates and in the manner as per the provisions of Schedule II of the Companies Act, 2013.

(c) Investments :

Long term Investment are stated at cost

(d) Inventories:

Inventories are valued at Cost or Net Relisable Value, whichever is lower. Cost Formula is determined below:

1 Raw Material and consumables - FIFO method.

2 Finished Goods, Stores, Spares, Work-in-Progress - Weighted Average Method.

(e) Retirement Benefits:

1 Contribution to Provident Fund is made at a predetermined rate and charged to revenue on accrual basis.

2 For gratuity the Company maintains Group Insurance-cum-Gratuity Scheme with Life Insurance Corporation of India. (See Note no.22)

3 Year end accrued liability for leave encashment has been provided on actuarial valuation done by approved valuer.

(f) Research and Development Expenditure :

Revenue expenditure is written off in the year in which it is incurred.

(g) Recognition of Income and Expenditure:

Items of Income and Expenditure are recognized on accrual basis

(h) Foreign Currency Transaction:

Transactions in Foreign exchange are recognized at the exchange rate prevailing on date of transaction. Gain & Losses arising on account of realization are accounted for in Statement of Profit and Loss.

Foreign currency denominated monetary assets and liabilities are translated into the relevent functional currency at exchange rates in effect at the Balance Sheet date. The gain or losses resulting from such tranlations are included in net profit in the Statement of Profit and Loss. Non monetary assets and liabilities denominated in foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction.

(i) Provision and Contingent Liabilities:

Provisions are recognized in the accounts in respect of present probable obligations the amount of which can be reliably estimated. Contingent Liabilities are disclosed in respect of possible obligations that arises from past events but their existence is confirmed from the occurrence or non occurrence of one or more uncertain future events and wholly within the control of Company

(j) Borrowing Cost:

Borrowing costs are attributable to the acquisition of construction of qualifying assets are capitalized as part of the cost of such assets. All other borrowings costs are charge to revenue

(k) Taxation :

The provision for income tax expenses comprises current tax & deferred tax. Current Tax are measured at the amount expected to be paid to the tax authority in accordance with the provision of the Income tax Act, 1961.

Deferred tax is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax assets are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(l) Impairment of Assets :

Impairment of loss is recognized at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company’s fixed assets. The same is recognized and provided for after estimating recoverable amount of that particular asset.

(m) Earning per Share :

The earnings in ascertaining the Company’s EPS comprises the net profit after tax and includes the part tax effect of any extraordinary items. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year.

---

Mar 31, 2016

a) Basis of preparation of Financial Statements

The financial statements are prepared and presented on accrual basis under the historical costs convention, in accordance with the generally accepted accounting principles in India and in accordance with relevant provisions of the Companies Act 1956, Companies Act, 2013 and in conformity with the applicable accounting standards under the Act.

b) Fixed Assets :

Fixed Assets are stated at cost of acquisition inclusive of inward freight, duties and taxes and incidental expenses related to acquisition.

Depreciation on Fixed Assets is provided from the date of capitalisation under the straight line method at the rates and in the manner as per the provisions of Schedule II of the Companies Act, 2013.

c) Investments :

Long term Investments are stated at cost.

d) Inventories :

Inventories are valued at cost or net realisable value whichever is lower. Cost formula is determined as follows :

1. Raw Material and consumables - FIFO method.

2. Finished Goods, stores, spares, work-in-progress - Weighted average method.

e) Retirement Benefits :

1) Contribution to Provident Fund is made at a predetermined rate and charged to revenue on accrual basis.

2) For gratuity the Company maintains Group Insurance-cum-Gratuity Scheme with Life Insurance Corporation of India. (See Note No. 22)

3) Year end accrued liability for leave encashment has been provided on actuarial valuation done by approved valuer.

f) Research and Development Expenditure :

Revenue expenditure is written off in the year in which it is incurred.

g) Recognition of Income and Expenditure :

Items of Income and Expenditure are recognised on accrual basis.

h) Foreign Currency Transaction :

Transactions in Foreign exchange are recognised at the exchange rate prevailing on date of transaction. Gain & Losses arising on account of realisation are accounted for in Statement of Profit and Loss.

Assets and Liabilities in foreign currency which are outstanding as at the year-end and not covered by forward contracts are translated at the year end exchange rates. Gain and Losses arising on account of such deviations are accounted for in the Statement of Profit & Loss.

i) Provision and Contingent Liabilities

Provisions are recognized in the accounts in respect of present probable obligations the amount of which can be reliably estimated. Contingent Liabilities are disclosed in respect of possible obligations that arises from past events but their existence is confirmed from the occurrence or non occurrence of one or more uncertain future events and wholly within the control of Company.

j) Borrowing Cost :

Borrowing costs are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. All other borrowing costs are charge to revenue.

k) Taxation

The Provision for income tax expenses comprises current tax & deferred tax. Current Tax are measured at the amount expected to be paid to the tax authority, in accordance with the provision of the Income Tax Act, 1961.

Deferred tax is recognised, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax assets are recognised only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

l) Impairment of Assets

Impairment of loss is recognised at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company’s fixed assets. The same is recognised and provided for after estimating recoverable amount of that particular asset.

m) Earning per share

The earnings in ascertaining the Company’s EPS comprises the net profit after tax and includes the part tax effect of any extraordinary items. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year.