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.

Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred
tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally
recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be
available against which those deductible temporary differences can be utilised. Such deferred tax assets and
liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a
business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the
accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from
the initial recognition of goodwill.

Deferred tax liabilities are recognised for taxable temporary differences associated with investments in
subsidiaries and associates, and interests in joint ventures, except where the Company is able to control the
reversal of the temporary difference and it is probable that the temporary difference will not reverse in the
foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such
investments and interests are only recognised to the extent that it is probable that there will be sufficient
taxable profits against which to utilise the benefits of the temporary differences and they are expected to
reverse in the foreseeable future.

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

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

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.

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

Current and deferred tax for the period.

Current and deferred tax are recognised in profit or loss, except when they are related to items that are
recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are
also recognized in other comprehensive income or directly in equity respectively. Where current tax or deferred
tax arises from the initial accounting for a business combination, the tax effect is included in the accounting
for the business combination.

X. Property, plant and equipment

The cost of property, plant and equipment comprises its purchase price net of any trade discounts and rebates,
any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any
directly attributable expenditure on making the asset ready for its intended use, including r¢1evant borrowing
costs for qualifying assets and any expected costs of decommissioning. Expenditure ir.itul:;ed aft .,the property,
plant and equipment have been put into operation, such as repairs and mainte J/ ii!.f' ,ed to the
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 Statement of Profit and Loss in the period in which the costs are incurred. Major shut-down and overhaul
expenditure is capitalised as the activities undertaken improves the economic benefits expected to arise from
the asset.

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 recognized in Statement of Profit and Loss.

Assets in the course of construction are capitalised in the assets under construction account. At the point when
an asset is operating at management's intended use, the cost of construction is transferred to the appropriate
category of property, plant and equipment and depreciation commences. Costs associated with the
commissioning of an asset and any obligatory decommissioning costs are capitalised where the asset is
available for use but incapable of operating at normal levels until a period of commissioning has been
completed. Revenue generated from production during the trial period is capitalised.

Property, plant and equipment except freehold land held for use in the production, supply or administrative
purposes, are stated in the balance sheet at cost less accumulated depreciation and accumulated impairment
losses. Freehold land is not depreciated.

The Company has elected to continue with the carrying value for all of its property, plant and equipment as
recognised in the financial statements as at the date of transition to Ind AS i.e. i st April, 2015, measured as
per the previous GAAP and use that as its deemed cost as at the date of transition.

XI. Intangible assets

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated
amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their
estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each
reporting year, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible
assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment
losses.

Estimated useful lives of the intangible assets are is taken as 3 years.

The Company has elected to continue with carrying value of all its intangible assets recognised ason transition
date, measured as per the previous GAAP and use that carrying value as its deemed cost as of transition date.

XII. Depreciation and amortisation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated
residual value. Depreciation is recognized 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 straight-line method as
per the useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of following categories
of assets:

a) In respect of the fixed assets, 8 MW Captive Power Plant (CPP), based on technical evaluation useful life of
asset is 20 years:
b) Depreciation on Plant and Machineries of Captive Power Plant (CPP) is provided on Written Down Value
(WDV) method.

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.
 Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned
assets. However, when there is no reasonable certainty that ownership will be obtained by the end of the lease
term, assets are depreciated over the shorter of the lease term and their useful lives.

Major overhaul costs are depreciated over the estimated life of the economic benefit derived from the overhaul.
The carrying amount of the remaining previous overhaul cost is charged to the Statement of Profit and Loss if
the next overhaul is undertaken earlier than the previously estimated life of the economic benefit.

The Company reviews the residual value, useful lives and depreciation method annually and, if expectations
differ from previous estimates, the change is accounted for as a change in accounting estimate on a prospective
basis.

XIII. Impairment of Property, plant and equipment and intangible assets other than goodwill
At the end of each reporting period, the Company reviews the carrying amounts of Property, plant and
equipment and intangible assets to determine whether there is any indication that those assets have suffered
an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to
determine the extent of the impairment loss (if any). Where 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. Where a reasonable and consistent basis of allocation can be identified, corporate
assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest
group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

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.

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

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount,
the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment
loss is recognised immediately in the Statement of Profit and Loss, unless the relevant asset is carried at a
revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating 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 the Statement of Profit and Loss, unless the relevant asset is carried at a revalued amount, in which case
the reversal of the impairment loss is treated as a revaluation increase.

XIV. Inventories
Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on
weighted average basis. Net realisable value represents the estimated selling price for inventories less all
estimated costs of completion and costs necessary to make the sale.

XV. Cash and cash equivalents:

Cash and cash equivalent in the Balance Sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, which are subject to insignificant risk of changes in value.

For the purpose of the Statement of cash flows, cash and cash equivalent consists of cash and short-term
deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the
Company's cash management
 XVI. Earnings per share
Basic earnings per share are computed by dividing the profit/ (loss) after tax by the weighted average number
of equity shares outstanding during the year. The weighted average number of equity shares outstanding
during the year is adjusted for treasury shares, bonus issue, bonus element in a rights issue to existing
shareholders, share split and reverse share split (consolidation of shares).

Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for dividend, interest
and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity
shares, by the weighted average number of equity shares considered for deriving basic earnings per share and
the weighted average number of equity shares which could have been issued on the conversion of all dilutive
potential equity shares including the treasury shares held by the Company to satisfy the exercise of the share
options by the employees.

XVII. Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive), as a result of
past events, and it is probable that an outflow of resources, that can be reliably estimated, will be required to
settle such an obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation.
When a provision is measured using the cash flows estimated to settle the present obligation, its carrying
amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received
and the amount of the receivable can be measured reliably.

Onerous contracts
Present obligations arising under onerous contracts are recognised and measured as provisions. An onerous
contract is considered to exist where the Company has a contract under which the unavoidable costs of meeting
the obligations under the contract exceed the economic benefits expected to be received from the contract.

XVIII. Financial Instruments

Financial assets and financial liabilities are recognised when a entity becomes a party to the contractual
provisions of the instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and
financial liabilities at fair value through Statement of Profit and Loss) are added to or deducted from the fair
value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit and
loss are recognised immediately in Statement of Profit and Loss.

A. Financial assets
a) Recognition and initial measurement
i) The Company initially recognises loans and advances, deposits, debt securities issues and subordinated
liabilities on the date on which they originate. All other financial instruments (including regular way
purchases and sales of financial assets) are recognised on the trade date, which is the date on which
the Company a party to the contractual provisions of the instrument. A financial asset or liability is
initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly
attributable to its acquisition or issue.

ii) In case of investments in subsidiaries, joint ventures and associates the Company has chosen to
measure its investments at deemed cost.
 iii) The Company has elected to apply the requirements pertaining to Level III financial instruments of
deferring the difference between the fair value at initial recognition and the transaction price
prospectively to transactions entered into on or after the date of transition to Ind AS.

b) Classification of financial assets

On initial recognition, a financial asset is classified as measured at; amortised cost, FVOCI or FVTPL

A financial asset is measured at amortised cost if it meets both of the following conditions and is not
designated at FVTPL:

The asset is held within a business model whose objective is to hold assets to collect contractual cash flows;
and

The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.

This category is the most relevant to the Company. 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 in finance income in the profit or loss. The losses arising
from impairment are recognised in the profit or loss. This category generally applies to trade and other
receivables. A debt instrument is classified as FVOCI only if it meets both the of the following conditions and
is not recognised at FVTPL;

The asset is held within a business model whose objective is achieved by both collecting contractual cash
flows and selling financial assets; and

The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting
date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However,
the Company recognizes interest income, impairment losses and reversals and foreign exchange gain or loss
in the statement of Profit and Loss. On derecognition of the asset, cumulative gain or loss previously
recognised in OCI is reclassified from the equity to statement of Profit and Loss. Interest earned whilst holding
FVTOCI debt instrument is reported as interest income using the EIR method.

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

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI
to Profit and Loss, even on sale of investment. However, the Company may transfer the cumulative gain or
loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized
in the Statement of Profit and Loss.

All other financial assets are classified as measured at FVTPL.

In addition, on initial recognition, the Company may irrevocably designate a financial asset that otherwise
meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so.eliminates or
significantly reduces and accounting mismatch that would otherwise arise. ·'· ,.
 Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains and
losses arising on remeasurement recognized in statement of profit or loss. The net gain or loss recognized in
statement of profit or loss incorporates any dividend or interest earned on the financial asset and is included
in the 'other income' line item. Dividend on financial assets at FVTPL is recognized The Company's right to
receive the dividends is established, it is probable that the economic benefits associated with the dividends
will flow to the entity, the dividend does not represent a recovery of part of cost of the investment and the a
mount of dividend can be measured reliably.

c) Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the
asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards
of ownership and continues to control the transferred asset, the Company recognises its retained interest in
the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all
the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the
financial asset and also recognises a collateralised borrowing for the proceeds received.

On derecognition of a financial asset in its entirety, the difference between the asset's carrying amount and
the sum of the consideration received and receivable and the cumulative gain or loss that had been
recognised in other comprehensive income and accumulated in equity is recognised in profit or loss if such
gain or loss would have otherwise been recognised in profit or loss on disposal of that financial asset.

On derecognition of a financial asset other than in its entirety (e.g. when the Company retains an option to
repurchase part of a transferred asset), the Company allocates the previous carrying amount of the financial
asset between the part it continues to recognise under continuing involvement, and the part it no longer
recognises on the basis of the relative fair values of those parts on the date of the transfer. The difference
between the carrying amount allocated to the part that is no longer recognised and the sum of the
consideration received for the part no longer recognised and any cumulative gain or loss allocated to it that
had been recognised in other comprehensive income is recognised in profit or loss if such gain or loss would
have otherwise been recognised in profit or loss on disposal of that financial asset. A cumulative gain or loss
that had been recognised in other comprehensive income is allocated between the part that continues to be
recognised and the part that is no longer recognised on the basis of the relative fair values of those parts.

d) Impairment
The Company applies the expected credit loss model for recognising impairment loss on financial assets
measured at amortised cost, debt instruments at FVTOCI, lease receivables, trade receivables, other
contractual rights to receive cash or other financial asset, and financial guarantees not designated as at
FVTPL.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring
as the weights. Credit loss is the difference between all contractual cash flows that are due to the Company
in accordance with the contract and all the cash flows that the Company expects to receive (i.e. all cash
shortfalls), discounted at the original effective interest rate (or credit-adjusted effective interest rate for
purchased or originated credit-impaired financial assets). The Company estimates cash flows by considering
all contractual terms of the financial instrument (for example, prepayment, extension, call and similar
options) through the expected life of that financial instrument.

The Company measures the loss allowance for a financial instrument at an amount equal to the lifetime
expected credit losses if the credit risk on that financial instrument has increased significantly since initial
recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition,
the Company measures the loss allowance for that financial instrument at an amount equal to 12-month
expected credit losses. 12-month expected credit losses are portion of the life-time expected credit losses
and represent the lifetime cash shortfalls that will result if default occurs within the 12 months after the
reporting date and thus, are not cash shortfalls that are predicted over the next 12 months.

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the previous period, but determines at the end of a reporting period that the credit risk has not increased
significantly since initial recognition due to improvement in credit quality as compared to the previous period,
the Company again measures the loss allowance based on 12-month expected credit losses.

When making the assessment of whether there has been a significant increase in credit risk since initial
recognition, the Company uses the change in the risk of a default occurring over the expected life of the
financial instrument instead of the change in the amount of expected credit losses. To make that assessment,
the Company compares the risk of a default occurring on the financial instrument as at the reporting date
with the risk of a default occurring on the financial instrument as at the date of initial recognition and
considers reasonable and supportable information, that is available without undue cost or effort, that is
indicative of significant increases in credit risk since initial recognition.

For trade receivables or any contractual right to receive cash or another financial asset that result from
transactions that are within the scope of Ind AS 11 and Ind AS 18, the Company always measures the loss
allowance at an amount equal to lifetime expected credit losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the
Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance
is computed based on a provision matrix which takes into account historical credit loss experience and
adjusted for forward-looking information.

The impairment requirements for the recognition and measurement of a loss allowance are equally applied
to debt instruments at FVTOCI except that the loss allowance is recognised in other comprehensive income
and is not reduced from the carrying amount in the balance sheet.

e) Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt instrument and of
allocating interest income over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash receipts (including all fees and points paid or received that form an integral
part of the effective interest rate, transaction costs and other premiums or discounts) through the expected
life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial
recognition.

Income is recognised on an effective interest basis for debt instruments other than those financial assets
classified as at FVTPL. Interest income is recognized in profit or loss and is included in the 'Other income' line
item.

B. Financial liabilities and equity instruments

a) Classification as debt or equity
Debt and equity instruments issued by a company are classified as either financial liabilities or as equity in
accordance with the substance of the contractual arrangements and the definitions of a financial liability and
an equity instrument.

b) Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds
received, net of direct issue costs.

Repurchase of the Company's own equity instruments is recognised and deducted directly in equity. No gain
or loss is recognised in Statement of Profit and Loss on the purchase, sale, issue or cancellation of the
Company's own equity instruments.
 c) Financial liabilities

Financial liabilities are classified as either financial liabilities 'at FVTPL' or 'other financial liabilities'.

Financial !'abilities t FVTPL:

Financial liabilities are classified as at FVTPL when the financial liability is either held for trading or it is
designated as at FVTPL.

A financial liability is classified as held for trading if:

• It has been incurred principally for the purpose of repurchasing it in the near term; or
• on initial recognition it is part of a portfolio of identified financial instruments that the Company manages
together and has a recent actual pattern of short-term profit-taking; or
• it is a derivative that is not designated and effective as a hedging instrument.
A financial liability other than a financial liability held for trading may be designated as at FVTPL upon initial
recognition if:

• such designation eliminates or significantly reduces a measurement or recognition inconsistency that would
otherwise arise;
• the financial liability forms part of a group of financial assets or financial liabilities or both, which is managed
and its performance is evaluated on a fair value basis, in accordance with the Company's documented risk
management or investment strategy, and information about the grouping is provided internally on that basis;
or
• it forms part of a contract containing one or more embedded derivatives, and Ind AS 109 permits the entire
combined contract to be designated as at FVTPL in accordance with Ind AS 109.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement
recognised in Statement of Profit and Loss. The net gain or loss recognised in Statement of Profit and Loss
incorporates any interest paid on the financial liability and is included in the 'other gains and losses' line item
in the Statement of Profit and Loss.

The Company derecognises financial liabilities when, and only when, the Company's obligations are
discharged, cancelled or they expire. The difference between the carrying amount of the financial liability
derecognised and the consideration paid and payable is recognised in Statement of Profit and Loss.

d) Other financial liabilities:

other financial liabilities (including borrowings and trade and other payables) are subsequently measured at
amortised cost using the effective interest method.

e) Derecognition of financial liabilities:

The Company derecognises financial liabilities when, and only when, the Company's obligations are
discharged, cancelled or have expired. An exchange between with a lender of debt instruments with
substantially different terms is accounted for as an extinguishment of the original financial liability and the
recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial
liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an
extinguishment of the original financial liability and the recognition of a new financial liability. The difference
between the carrying amount of the financial liability derecognised and the consideration paid and payable is
recognised in profit or loss.

f) 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 finaAcial liabilities.
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business model for managing those assets. Changes to the business model are expect \.I to,6e infreqwe-nt. The
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 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 year
following the change in business model. The Company does not restate any previously recognised gains, losses
(including impairment gains or losses) or interest.

XIX. Applicability of new Ind AS:

Initial application of an Ind AS

The Company applied Ind AS 115 'Revenue from Contracts with Customers' for the first time. Ind AS 115
supersedes Ind AS 18 'Revenue' and it applies, with limited exceptions, to all revenue arising from contracts
with customers. Ind AS 115 establishes a five-step model to account for revenue arising from contracts with
customers and requires that revenue be recognised 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.

Ind AS 115 requires entities to exercise judgement, taking into consideration all of the relevant facts and
circumstances when applying each step of the model to contracts with their customers. The standard also
specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to
fulfilling a contract. In addition, the standard requires extensive disclosures.

The Company adopted Ind AS 115 using the cumulative effect method on transition, applied to contracts that
were not completed contracts as at April 1, 2018. Therefore, the comparative information was not restated and
continues to be reported under Ind AS 18. There was no impact on transition on the opening balance sheet as
at April 1, 2018. The new standard has no material impact on the revenue recognised during the year.

XX. Recent accounting pronouncement:

Standard issued but not yet effective:
Ministry of Corporate Affairs ("MCA") through Companies (Indian Accounting Standards) Amendment Rules,
2019 and Companies (Indian Accounting Standards) Second Amendment Rules, has notified the following new
and amendments to Ind AS which the Group has not applied as they are effective from April 1, 2019

Ind AS 116 - Leases

Ind AS 116 Lease was notified by MCA on 30th March 2019 and it replaces Ind AS 17 Leases including appendices
thereto. Ind AS 116 is effective for annual periods beginning on or after 1 April 2019. Ind AS 116 sets out the
principals for the recognition, measurement, presentation and disclosure of Leases and requires lessees to
account for all leases under a single on Balance sheet model similar to the accounting for finance leases under
Ind AS 17. The standard includes two recognition exemptions for lessees-leases of 'Low Value' assets (e.g.
Personal computers) and short term leases (i.e Lease with a lease term of 12 months or less). At the
commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e the lease liability)
and an asset representing the right to use the underlying asset during the lease term (i.e the right of use
asset). Lessees will be required to separately recognise the interest expenses on the lease liability and the
depreciation expenses on the right of use asset.

Lessees will be also required to re-measure the lease liability upon the occurrence of certain events (e.g. a
change in the lease term, a change in future lease payments resulting from a change in an index or rate used
to determine those payments). The lessee will generally recognise the amount of the remesurement of the
lease liability as an adjustment to the right of use asset.

Lessor accounting under Ind AS 116 is substantially unchanged from today's accounting under Ind AS 17.

Lessor will continue to classify all leases using the same classification principle as in Ind AS 17 and distinguish
between two types of Leases: operating and finance leases.
Ind AS 12 - Income taxes (amendments relating to income tax consequences of dividend and
uncertainty over income tax treatments)

The amendment relating to income tax consequences of dividend clarify that an entity shall recognise the
income tax consequences of dividends in profit or loss, other comprehensive income or equity according to
where the entity originally recognised those past transactions or events. The Company does not expect any
impact from this pronouncement. It is relevant to note that the amendment does not amend situations where
the entity pays a tax on dividend which is effectively a portion of dividends paid to taxation authorities on
behalf of shareholders. Such amount paid or payable to taxation authorities continues to be charged to equity
as part of dividend, in accordance with Ind AS 12.

The amendment to Appendix C of Ind AS 12 specifies that the amendment is to be applied to the determination
of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is
uncertainty over income tax treatments under Ind AS 12. It outlines the following: (1) the entity has to use
judgement, to determine whether each tax treatment should be considered separately or whether some can
be considered together. The decision should be based on the approach which provides better predictions of the
resolution of the uncertainty(2) the entity is to assume that the taxation authority will have full knowledge of
all relevant information while examining any amount (3) entity has to consider the probability of the relevant
taxation authority accepting the tax treatment and the determination of taxable profit (tax loss), tax bases,
unused tax losses, unused tax credits and tax rates would depend upon the probability. The Company does not
expect any significant impact of the amendment on its financial statements.

Ind AS 109 - Prepayment Features with Negative Compensation

The amendments relate to the existing requirements in Ind AS 109 regarding termination rights in order to
allow measurement at amortised cost (or, depending on the business model, at fair value through other
comprehensive income) even in the case of negative compensation payments. The Company does not expect
this amendment to have any impact on its financial statements.

Ind AS 19 - Plan Amendment, Curtailment or Settlement

The amendments clarify that if a plan amendment, curtailment or settlement occurs, it is mandatory that the
current service cost and the net interest for the period after the re-measurement are determined using the
assumptions used for the re-measurement. In addition, amendments have been included to clarify the effect
of a plan amendment, curtailment or settlement on the requirements regarding the asset ceiling. The Company
does not expect this amendment to have any significant impact on its financial statements.

Ind AS 23 - Borrowing Costs

The amendments clarify that if any specific borrowing remains outstanding after the related asset is ready for
its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when
calculating the capitalisation rate on general borrowings. The Company does not expect any impact from this
amendment.

3. Key sources of estimation uncertainty

• Useful lives of property, plant and egu· ment
Management reviews the useful lives of property, plant and equipment at least once a year. Such lives are
dependent upon an assessment of both the technical lives of the assets and also their likely economic lives
based on various internal and external factors including relative efficiency and operating costs. Accordingly,
depreciable lives are reviewed annually using the best information available to the Management.

• I airment of investments in subsidiaries, joint- ventures and associates

 businesses / operations of the investee companies as more fully descried in note 15. Any subsequent
changes to the cash flows due to changes in the above mentioned factors could impact the carrying value
of investments.

• Provisions and liabilities

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future
outflow of funds resulting from past operations or events that can reasonably be estimated. The timing of
recognition requires application of judgement to existing facts and circumstances which may be subject to
change. The amounts are determined by discounting the expected future cash flows at a pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to the liability.

• Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against
the Company. Potential liabilities that are possible but not probable of crystalising or are very difficult to
quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not
recognized.

• Fair value measurements

When the fair values of financial assets or financial liabilities recorded or disclosed in the financial
statements cannot be measured based on quoted prices in active markets, their fair value is measured
using valuation techniques including the DCF model. The inputs to these models are taken from observable
markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair
values. Judgements include consideration of inputs such as liquidity risk, credit risk and volatility.

• Taxes

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit
will be available against which the losses can be utilized. Significant management judgement is required to
determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the
level of future taxable profits together with future tax planning strategies.

• Defined benefit plan:

The cost of defined benefit plan and other postemployment benefits and the present value of such
obligations are determined using actuarial valuations. An actuarial valuation involves making various
assumptions that may differ from actual development in the future. These include the determination of the
discount rate, future salary escalations and mortality rates etc. Due to the complexities involved in the
valuation and its long term nature, a defined benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each reporting date.

4. Critical accounting judgements

Separating pavments of lease from the other payments
If an arrangement contains a lease, the parties to the arrangement shall apply the requirements of Ind AS
17 to the lease element. Therefore, the Company is required to separate payments and other consideration
required by the arrangement into those for the lease and for other elements on the basis of their relative
fair values.

However, Management has concluded that it is impracticable to separate both the elements reliably and
has recognized a finance lease receivable at an amount equal to the carrying value of the specified asset.
Subsequently, the receivable has been reduced as payments are made and an imputed finance income on
the receivable recognized using the Company's incremental borrowing rate of interest over the tenure of
the arrangement. The total payments less payments made towards lease receivables and,fll}JDUlled flA.ance
income have been considered to be the consideration for elements other than lease. �- t�'''� �:�-
17
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