1.13 Provision, Contingent Liabilities and Contingent
Assets:

Provisions are recognized when the Company has a
present obligation (legal or constructive) as a result
of a past event, it is probable that the Company will
be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best
estimate of the consideration required to settle the
present obligation at the end of the reporting period,
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).

A contingent liability exists when there is a possible
but not probable obligation or a present obligation
that may, but probably will not; require an outflow
of resources, or a present obligation whose amount
cannot be estimated reliably. Contingent liabilities
do not warrant provisions, but are disclosed unless
the possibility of outflow of resources is remote.
Contingent assets are neither recognized nor disclosed
in the financial statements. However, contingent assets
are assessed continually and if it is virtually certain that
an inflow of economic benefits will arise, the asset and
related income are recognised in the period in which
the change occurs.

A contingent asset is a possible asset that arises from
past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the
control of the Company.

1.14 Fair value measurement

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date, regardless of whether that price
is directly observable or estimated using another
valuation technique. In estimating the fair value of
an asset or a liability, the Company takes into account
the characteristics of the asset or liability at the
measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the financial asset or settle the financial liability takes
place either:

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

• In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must
be accessible by the Company.

A fair value measurement of a non-financial asset
takes into account a market participant's ability to
generate economic benefits by using the asset in its
highest and best use or by selling it to another market
participant that would use the asset in its highest and
best use. Fair value for measurement and/or disclosure
purposes in these financial statements is determined
on such a basis, except for measurements that have
some similarities to fair value but are not fair value,
such as net realisable value in Ind AS 2 or value in use
in Ind AS 36.

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

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

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

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

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

At each reporting date, the Management analyses the
movements in the values of assets and liabilities which
are required to be remeasured or re-assessed as per
the Company's accounting policies.

For the purpose of fair value disclosures, the Company
has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset
or liability and the level of the fair value hierarchy as
explained above.

1.15 Financial Instruments

Financial assets and financial liabilities are recognized
when a Company becomes a party to the contractual
provisions of the instruments.

Financial assets and financial liabilities are initially
measured at fair value. However, trade receivables
that do not contain a significant financing component
are measured at transaction price. 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 profit or 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
or loss are recognized immediately in profit or loss.
An equity instrument is any contract that evidences
a residual interest in the assets of a Company after
deducting all of its liabilities. Equity instruments
issued by a Company are recognised at the proceeds
received, net of direct issue costs.

1.16 Financial assets

All regular way purchases or sales of financial assets
are recognized and derecognized on a trade date
basis. Regular way purchases or sales are purchases or
sales of financial assets that require delivery of assets
within the time frame established by regulation or
convention in the market place.

All recognized financial assets are subsequently
measured in their entirety at either amortized cost
or fair value, depending on the classification of the
financial assets.

Classification of financial assets

Financial assets that meet the following conditions are
subsequently measured at amortized cost:

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

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

For the impairment policy on financial assets measured
at amortised cost, refer paragraph of Impairment of
financial assets.

A financial asset that meet the following conditions
are subsequently measured at fair value through other
comprehensive income (FVOCI).

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

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

Interest income is recognized in profit or loss for FVTOCI
debt instruments. For the purposes of recognizing
foreign exchange gains and losses, FVTOCI debt
instruments are treated as financial assets measured
at amortized cost. Thus, the exchange differences on
the amortized cost are recognized in profit or loss and
other changes in the fair value of FVTOCI financial
assets are recognized in other comprehensive income
and accumulated under the heading of 'Reserve for
debt instruments through other comprehensive
income'. When the investment is disposed of, the
cumulative gain or loss previously accumulated in this
reserve is reclassified to profit or loss.

For the impairment policy on debt instruments at
FVTOCI, refer paragraph of Impairment of financial
assets.

Effective interest method

The effective interest method is a method of
calculating the amortized 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 recognized 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.

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

A financial asset that does not meet the amortised cost
criteria or FVTOCI criteria (see above) is measured at
FVTPL. In addition, debt instruments that meet the
amortised cost criteria or the FVTOCI criteria but are
designated as at FVTPL are measured at FVTPL.
Financial assets at FVTPL are measured at fair value
at the end of each reporting period, with any gains or
losses arising on remeasurement recognized in profit
or loss. The net gain or loss recognized in 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
recognised when the Company's right to receive
the dividends is established, it is probable that the
economic benefits associated with the dividend will
flow to the Company, the dividend does not represent
a recovery of part of cost of the investment and the
amount of dividend can be measured reliably.
Investments in subsidiaries and associates
Investments in subsidiaries and associates are carried
at cost less accumulated impairment losses, if any.
Where an indication of impairment exists, the carrying
amount of the investment is assessed and written
down immediately to its recoverable amount. On
disposal of investments in subsidiaries and associates,
the difference between net disposal proceeds and the
carrying amounts are recognised in the profit or loss.
Impairment of financial assets
The Company applies the expected credit loss model
for recognizing impairment loss on financial assets
measured at amortized cost, 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.

If the Company measured loss allowance for a
financial instrument at lifetime expected credit loss
in 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 115,
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.
Derecognition of financial assets
The Company derecognizes 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.

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 recognized in other comprehensive income
and accumulated in equity is recognized in profit or
loss if such gain or loss would have otherwise been
recognized 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
recognize under continuing involvement, and the part
it no longer recognizes 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 recognized and the sum
of the consideration received for the part no longer
recognized and any cumulative gain or loss allocated
to it that had been recognized in other comprehensive
income is recognized in profit or loss if such gain or loss
would have otherwise been recognized in profit or loss
on disposal of that financial asset. A cumulative gain or
loss that had been recognized in other comprehensive
income is allocated between the part that continues
to be recognized and the part that is no longer
recognized on the basis of the relative fair values of
those parts.

1.17 Financial liabilities

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.

Financial liabilities

All financial liabilities are subsequently measured at
amortized cost using the effective interest method or
at FVTPL.

Financial liabilities subsequently measured at
amortized cost

Financial liabilities that are not held-for-trading and
are not designated as at FVTPL are measured at
amortized cost at the end of subsequent accounting
periods. The carrying amounts of financial liabilities
that are subsequently measured at amortized cost are
determined based on the effective interest method.
Interest expense that is not capitalized as part of costs
of an asset is included in the 'Finance costs' line item.
The effective interest method is a method of
calculating the amortized cost of a financial liability
and of allocating interest expense over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash payments
(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 financial liability,
or (where appropriate) a shorter period, to the net
carrying amount on initial recognition.
Derecognition of financial liabilities
The Company derecognizes financial liabilities when,
and only when, the Company's obligations are
discharged, cancelled or have expired. An exchange
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 derecognized
and the consideration paid and payable is recognized
in profit or loss.

Financial liabilities at FVTPL are stated at fair value,
with any gains or losses arising on remeasurement
recognized in profit or loss. The net gain or loss
recognized in profit or loss incorporates any interest
paid on the financial liability and is included in the
'Finance Costs' line item.

1.18 Derivative Financial Instrument and Hedge
Accounting:

The Company enters into forward exchange contracts
to hedge the foreign currency risk on trade receivables
and borrowings. The Company does not enter into

any derivative instruments for trading or speculative
purposes.

Recognition and measurement of fair value hedge:

Derivative financial instrument is initially recognized at
fair value on the date on which a derivative contract
is entered into and is subsequently measured at fair
value at each reporting date. Gain or loss arising
from changes in the fair value of derivative financial
instrument is recognized in the Statement of Profit and
Loss. Derivative financial instrument is recognized as
a financial asset in the Balance Sheet if its fair value as
at reporting dates is positive as compared to carrying
value and as a financial liability if its fair value as at
reporting date is negative as compared to carrying
value.

1.19 Cash Flow Statement:

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

1.20 Current versus non-current classification

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

An asset is current when it is:

• Expected to be realised or intended to be sold or
consumed in the normal operating cycle;

• Held primarily for the purpose of trading;

• Expected to be realised within twelve months
after the reporting period; or

• Cash or cash equivalent unless restricted from
being exchanged or used to settle a liability for
at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

• t is expected to be settled in the normal operating
cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months after
the reporting period; or

• There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period.

The Company classifies all other liabilities as non¬
current.

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

1.21 Operating Cycle:

Based on the nature of products / activities of the
Company and the normal time between acquisition of
assets and their realization in cash or cash equivalents,
the Company has determined its operating cycle as 12
months for the purpose of classification of its assets
and liabilities as current and non-current.

1.22 Cash and Cash Equivalents:

The Company considers all highly liquid financial
instruments, which are readily convertible into known
amount of cash that are subject to an insignificant risk
of change in value and having original maturities of
three months or less from the date of purchase, to be
cash equivalents.

1.23 Borrowing Costs:

Borrowing costs attributable to the acquisition,
construction or production of qualifying assets, are
added to the cost of those assets, up to the date when
the assets are ready for their intended use. All other
borrowing costs are expensed in the period they occu r.
Interest income earned on the temporary investment
of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing
costs eligible for capitalisation. Where the funds used
to finance a project form part of general borrowings,
the amount capitalized is calculated using a weighted
average of rates applicable to relevant general
borrowings of the company during the year.

All other borrowing costs are recognised in profit or
loss in the period in which they are incurred.

1.24 Government grants and Subsidies:

Government grants are recognized when there is a
reasonable assurance that the Company will comply
with the conditions attached to them and grants will
be received.

Government grants are recognized in Statement of
Profit and Loss on a systematic basis over the periods
in which the Company recognises as expenses the
related costs for which the grants are intended to
compensate. Specifically, government grants whose
primary condition is that the Company should
purchase, construct or otherwise acquire non-current
assets are recognized as deferred revenue in the
Balance Sheet and transferred to Statement of Profit
and Loss on a systematic and rational basis over the
useful lives of the related assets.

Government grants that are receivable as
compensation for expenses or losses already incurred
or for the purpose of giving immediate financial
support to the Company with no future related costs
are recognized in Statement Profit and Loss in the
period in which they become receivable.

The benefit of a government loan at a below-market
rate of interest is treated as a governments grant,
measured as the difference between proceeds
received and the fair value of the loan based on
prevailing market interest rates.

1.25 Offsetting of Financial Instruments:

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

1.26 Earnings per Share:

Basic earnings per equity share is computed by dividing
the net profit/(loss) attributable to the equity holders
of the Company by the weighted average number of
equity shares outstanding during the period.

Diluted earnings per equity share is computed by
dividing the net profit attributable to the equity
holders of the Company by the weighted average
number of equity shares considered for deriving
basic earnings per equity share and also the weighted
average number of equity shares that could have been
issued upon conversion of all dilutive potential equity
shares.

The dilutive potential equity shares are adjusted for
the proceeds receivable had the equity shares been
actually issued at fair value (i.e. the average market
value of the outstanding equity shares). Dilutive
potential equity shares are deemed converted as of
the beginning of the period, unless issued at a later
date. Dilutive potential equity shares are determined
independently for each period presented. The number
of equity shares and potentially dilutive equity
shares are adjusted retrospectively for all periods
presented for any share splits and bonus shares issues
including for changes effected prior to the approval
of the standalone financial statements by the Board
of Directors.

1.27 Use of Estimates

The preparation of financial statements requires
management of the Company to make judgements,
estimates and assumptions that affect the reported
assets and liabilities, revenue and expenses and
disclosures relating to contingent liabilities.
Management believes that the estimates used in the
preparation of the financial statements are prudent
and reasonable. Estimates and underlying assumptions
are reviewed by management at each reporting date.
Actual results could differ from these estimates. Any
revision of these estimates is recognised prospectively
in the current and future periods.

Followings are the critical judgements and estimates:

1.27.1 Judgements

(i) Leases

Ind AS 116 -Leases requires lessees to determine
the lease term as the non-cancellable period of
a lease adjusted with any option to extend or
terminate the lease, if the use of such option
is reasonably certain. The Company makes an
assessment on the expected lease term on
a lease-by-lease basis and thereby assesses
whether it is reasonably certain that any options
to extend or terminate the contract will be
exercised. In evaluating the lease term, the
Company considers factors such as any significant
leasehold improvements undertaken over the
lease term, costs relating to the termination of
the lease and the importance of the underlying
asset to Company's operations taking into
account the location of the underlying asset and
the availability of suitable alternatives. The lease
term in future periods is reassessed to ensure
that the lease term reflects the current economic
circumstances.

(ii) Income taxes

Significant judgements are involved in
determining the provision for income taxes
including judgement on whether tax positions
are probable of being sustained in tax
assessments. A tax assessment can involve
complex issues, which can only be resolved over
extended time periods. The recognition of taxes
that are subject to certain legal or economic
limits or uncertainties is assessed individually
by management based on the specific facts and
circumstances.

In assessing the realisability of deferred tax assets,
management considers whether some portion or
all of the deferred tax assets will not be realised.
The ultimate realisation of deferred tax assets
is dependent upon the generation of future
taxable income during the periods in which
the temporary differences become deductible.
Management considers the scheduled reversals
of deferred income tax liabilities, projected future
taxable income and tax planning strategies in
making this assessment. Based on the level of
historical taxable income and projections for
future taxable income over the periods in which
the deferred income tax assets are deductible,
management believes that the company
will realise the benefits of those deductible
differences. The amount of the deferred income
tax assets considered realisable, however, could
be reduced in the near term if estimates of future

taxable income during the carry forward period
are reduced.

(iii) Provisions and contingent liabilities

The Company exercises judgement in measuring
and recognising provisions and the exposures to
contingent liabilities related to pending litigation
or other outstanding claims subject to negotiated
settlement, mediation, government regulation,
as well as other contingent liabilities. Judgement
is necessary in assessing the likelihood that a
pending claim will succeed, or a liability will arise,
and to quantify the possible range of the financial
settlement. Because of the inherent uncertainty
in this evaluation process, actual losses may be
different from the originally estimated provision.
Provisions are reviewed at each balance sheet
date and adjusted to reflect the current best
estimate. If it is no longer probable that the
outflow of resources would be required to settle
the obligation, the provision is reversed.

1.27.2 Estimates

(i) Useful lives of property, plant and equipment,
and intangible assets

Property, plant and equipment, and intangibles
assets represent a significant proportion of
the asset base of the Company. The charge in
respect of periodic depreciation is derived after
determining an estimate of an asset's expected
useful life and the expected residual value at
the end of its life. The useful lives and residual
values of Company's assets are determined
by the management at the time the asset is
acquired and reviewed periodically, including at
each financial year end. The lives are based on
historical experience with similar assets as well as
anticipation of future events, which may impact
their life,such as changes in technology.

(ii) Sales returns

The Company accounts for sales returns accrual
by recording an allowance for sales returns
concurrent with the recognition of revenue
at the time of a product sale. This allowance is
based on the Company's estimate of expected
sales returns. The estimate of sales returns is
determined primarily by the Company's historical
experience in the markets in which the Company
operates. With respect to established products,
the Company considers its historical experience
of sales returns, levels of inventory in the
distribution channel, estimated shelf life, product
discontinuances, price changes of competitive
products, and the introduction of competitive

new products, to the extent each of these factors
impact the Company's business and markets.

(iii) Provision for rebates and discounts

Provisions for rebates, discounts and other
deductions are estimated and provided for in
the year of sales and recorded as reduction
of revenue. Provisions for such rebates and
discounts are accrued and estimated based on
historical average rate actually claimed over
a period of time, current contract prices with
customers.

(iv) Expected credit loss

The Company applies Expected Credit Losses
("ECL") model for measurement and recognition
of loss allowance on the following:

• Trade receivables and lease receivables.

• Financial assets measured at amortised
cost (other than trade receivables and lease
receivables).

In accordance with In accordance with Ind AS
109 - Financial Instruments, the Company applies
ECL model for measurement and recognition
of impairment loss on the 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 115 - Revenue from
Contracts with Customers.

(v) Accounting for defined benefit plans

In accounting for post-retirement benefits,
several statistical and other factors that
attempt to anticipate future events are used to
calculate plan expenses and liabilities. These
factors include expected return on plan assets,
discount rate assumptions and rate of future
compensation increases. To estimate these
factors, actuarial consultants also use estimates
such as withdrawal, turnover, and mortality
rates which require significant judgement. The
actuarial assumptions used by the Company
may differ materially from actual results in future
periods due to changing market and economic
conditions, regulatory events, judicial rulings,
higher or lower withdrawal rates, or longer or
shorter participant life spans.

(vi) Impairment of non-financial assets

An impairment loss is recognised for the
amount by which an asset's or cash-generating
unit's carrying amount exceeds its recoverable
amount. To determine the recoverable amount,
management estimates expected future cash
flows from each asset or cash generating unit
and determines a suitable interest rate in order

to calculate the present value of those cash flows.
In the process of measuring expected future cash
flows, management makes assumptions about
future operating results. These assumptions
relate to future events and circumstances. The
actual results may vary and may cause significant
adjustments to the Company's assets.

In most cases, determining the applicable
discount rate involves estimating the appropriate
adjustment to market risk and the appropriate
adjustment to asset specific risk factors.

(vii) Fair value of financial instruments
Management uses valuation techniques in
measuring the fair value of financial instruments
where active market quotes are not available. In
applying the valuation techniques, management
makes maximum use of market inputs and
uses estimates and assumptions that are, as far
as possible, consistent with observable data
that market participants would use in pricing
the instrument. Where applicable data is not
observable, management uses its best estimate
about the assumptions that market participants
would make. These estimates may vary from the
actual prices that would be achieved in an arm's
length transaction at the reporting date.

(viii) Fair value of assets held for sale
Management uses valuation techniques in
measuring the fair value of financial instruments
where active market quotes are not available. In
applying the valuation techniques, management
uses its best esti mate about the assumptions that
market participants would make. These esti mates
may vary from the actual prices that would be
achieved in an arm's length transaction at the
reporting date.

1.28 Business Combinations

The Company accounts for its business combinations
under acquisition method of accounting. Acquisition
related costs are recognised in the standalone
statement of profit and loss as incurred. The acquiree's
identifiable assets, liabilities and contingent liabilities
that meet the condition for recognition are recognised
at their fair values at the acquisition date.

Purchase consideration paid in excess of the fair value
of net assets acquired is recognised as goodwill.
Where the fair value of identifiable assets and liabilities
exceed the cost of acquisition, after reassessing the fair
values of the net assets and contingent liabilities, the
excess is recognised as capital reserve.

Business Combination under Common control
Transactions arising from transfers of assets / liabilities,
interest in entities or businesses between entities

that are under the common control, are accounted at
historical carrying amounts. The difference, between
any consideration paid / received and the aggregate
historical carrying amounts of assets / liabilities and
interests in entities acquired / disposed (other than
impairment, if any), is recorded in capital reserve /
retained earnings, as applicable.

1.29 Goodwill

Goodwill is initially measured at cost, being the excess
of the aggregate of the consideration transferred and
the amount recognised for the net identifiable assets
acquired and liabilities assumed. If the fair value of
the net assets acquired is in excess of the aggregate
consideration transferred, the Company reassesses
whether it has correctly identified all of the assets
acquired and all of the liabilities assumed and reviews
the procedures used to measure the amounts to be
recognised at the acquisition date. If the reassessment
still results in an excess of the fair value of net assets
acquired over the aggregate consideration transferred,
then the gain is recognised in other comprehensive
income (OCI) and accumulated in equity as capital
reserve. However, if there is no clear evidence of
bargain purchase, the Company recognises the gain
directly in equity as capital reserve, without routing
the same through OCI.

After initial recognition, goodwill is measured at cost
less any accumulated impairment losses. For the
purpose of impairment testing, goodwill acquired
in a business combination is, from the acquisition
date, allocated to each of the Company's cash
generating units that are expected to benefit from
the combination, irrespective of whether other assets
or liabilities of the acquire are assigned to those units.
A cash generating unit to which goodwill has been
allocated is tested for impairment annually, or more
frequently when there is an indication that the unit
may be impaired. If the recoverable amount of the
cash generating unit is less than its carrying amount,
the impairment loss is allocated first to reduce the
carrying amount of any goodwill allocated to the unit
and then to the other assets of the unit pro rata based
on the carrying amount of each asset in the unit. Any
impairment loss for goodwill is recognised in profit or
loss. An impairment loss recognised for goodwill is not
reversed in subsequent periods.

1.30 Dividend distribution to equity shareholders

The Company recognises a liability to make dividend
distributions to its equity holders when the distribution
is authorised and the distribution is no longer at
its discretion. As per the corporate laws in India, a
distribution is authorised when it is approved by the

shareholders. A corresponding amount is recognised
directly in equity.

In case of Interim Dividend, the liability is recognised
on its declaration by the Board of Directors.

1.31 Non-current assets held for sale/ distribution to
owners and discontinued operations

The Company classifies non-current assets (or disposal
group) as held for sale if their carrying amounts will
be recovered principally through a sale rather than
through continuing use.

Actions required to complete the sale should indicate
that it is unlikely that significant changes to the sale will
be made or that the decision to sell will be withdrawn.
Management must be committed to the sale expected
within one year from the date of classification.

The criteria for held for sale classification is regarded
met only when the assets is available for immediate
sale in its present condition, subject only to terms that
are usual and customary for sales of such assets, its sale
is highly probable; and it will genuinely be sold, not
abandoned. The Company treats sale of the asset to
be highly probable when:

• The appropriate level of management is
committed to a plan to sell the asset,

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

• The asset is being actively marketed for sale at a
price that is reasonable in relation to its current
fair value,

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

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

Non-current assets held for sale are measured at the
lower of their carrying amount and the fair value less
costs to sell. Assets and liabilities classified as held for
sale are presented separately in the balance sheet.

An impairment loss is recognised for any initial or
subsequent write-down of the assets to fair value less
cost to sell. A gain is recognised for any subsequent
increases in the fair value less cost to sell of an assets
but not in excess of the cumulative impairment loss
previously recognised, A gain or loss previously not
recognised by the date of sale of the non-current
assets is recognised on the date of de-recognition.
Property, plant and equipment and intangible assets
once classified as held for sale/ distribution to owners
are not depreciated or amortised.

1.32 Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker.

1.33 Recent Accounting Pronouncements

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

Standard issued but not yet effective:

On May 9, 2025, MCA notifies the amendments to
Ind AS 21 - Effects of Changes in Foreign Exchange
Rates. These amendments aim to provide clearer
guidance on assessing currency exchangeability and
estimating exchange rates when currencies are not
readily exchangeable. The amendments are effective
for annual periods beginning on or after April 1, 2025.
The Company has assessed that there is no significant
impact on its financial statements.

(A) Credit Risk Management

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.
Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial
instruments, other balances with banks, loans and other receivables.

Credit risk arising from investment in quoted equity shares, mutual funds, derivative financial instruments and other balances
with banks is limited and there is no collateral held against these because the counterparties are banks and recognised
financial institutions with high credit ratings assigned by the international credit rating agencies.

The Company has disclosed financial instruments such as cash and cash equivalents, other bank balances, trade receivables, loans,
other financial assets, borrowings, trade payables and other financial liabilities at carrying value because their carrying amounts
are a reasonable approximation of the fair values due to their short term nature.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments
and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock
exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the
counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as
little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the
instrument is included in level 2.

Level 3:The fair value of financial instruments that are measured on the basis of entity specific valuations using inputs that are
not based on observable market data (unobservable inputs).

Valuation technique used to determine fair value:

Specific valuation techniques used to value financial instruments include:

S the use of quoted market prices or dealer quotes for similar instruments.

S the fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date.

S The fair value of investments in Mutual Fund Units is based on Net Asset Value ("NAV") as stated by the issuers of these

mutual fund units in the published statements as at the Balance Sheet Date. NAV represents the price at which the issuer
will issue further units of Mutual Fund and the price at which issuers will redeem such units from investors.

37 Financial Risk Managemen

The Company's activities expose it to market risk, liquidity risk and credit risk. In order to minimize any adverse effects on the
financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts are entered
to hedge certain foreign currency risk exposures. Derivatives are used exclusively for hedging purposes and not as trading or
speculative instruments.

This note explains the sources of risk which the Company is exposed to and how the Company manages the risk and the impact
of hedge accounting in the financial statements.

Credit Risk

Liquidity Risk

Market Risk

- Foreign Exchange Risk

- Interest Rates

- Security Price

40 Segment Information

The company is engaged in Dyes, Dyes Intermediates and Basic Chemicals. Considering the nature of company's business and
operations as well as reviews of operating results by the Chief Operating Decision Makers to make decisions about resource
allocation, performance allocation and performance measurement, the company has identified Dyes, Dyes Intermediates and
Basic Chemicals activities as only responsible segment in accordance with the requirements of Ind AS 108 operating segment.

The geographical segment has been considered for disclosure as secondary segment.

Two secondary segments have been identified based on the geographical locations of customers i.e. domestic and export.
Information about geographical segments are as below.

The estimates of future salary increases, considered in actuarial valuation have taken into account inflation, seniority,
promotion and other relevant factors, such as supply and demand in the employment market.

The rate used to discount defined benefit obligation (both funded and unfunded) is determined by reference to market
yield at the Balance Sheet date on high quality corporate bonds. In countries where there is no deep market in such
bonds the market yields (at the Balance Sheet Date) on government bonds shall be used. The currency and term of the
corporate bonds or government bonds shall be consistent with currency and estimated term of the post employment
benefit obligations.

The estimated term of the Obligation is around 9.39 years (P.Y. 9.10 years). The yields on the government bonds as at
the valuation date were 6.70% (P.Y. 7.20%). The expected contribution in the next year is ' 17.14 million.

Other long-term employee benefits

The Company provides for accumulation of compensated absences by certain categories of its employees. These
employees can carry forward a portion of the unutilised compensated absences and utilise them in future periods or
receive cash in lieu thereof as per the Company's policy. The Company records a liability for compensated absences
in the period in which the employee renders the services that increases this entitlement. The total liability recorded
by the Company towards this obligation was ' 10.07 million and ' 1.38 million as at 31st March, 2025 and 31st March,
2024, respectively.

Liabilities recognized in respect of other long-term employee benefits such as compensated absences are measured
at the present value of the estimated future cash outflows expected to be made by the Company in respect of services
provided by employees up to the reporting date. These are determined actuarially using the projected unit credit
method.

49 Details of loans given, investment made and guarantee given

Disclosure pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 186 of the Companies
Act, 2013.

The Company has not given loan and guarantee to any of the subsidiaries. With regards to investment in subsidiary refer note 6

50 In month of December 2024, a fire incident occurred at blending operations area i.e. part of Dyes Plant at Unit 7 of the company,
located at Block No. 804, Village- Dudhwada, Ta. Padra, Dist. Vadodara, Gujarat. The fire was spread to nearby storage area only. The
fire was successfully controlled without disturbing or stoppage of major operational activities at the said unit. Further, there has
been no injury or loss to human life at our plant. This incident led to damage to mainly inventories and some part of property, plant
and equipment.

There is adequate insurance coverage under Industry All Risk policy for assets of the company. The Company has lodged
intimation of the incident to the insurance company and the survey is currently ongoing.

The primary assessment of loss for book value of inventories was ' 50.12 million and after considering reversal of Goods and
Services Tax of ' 6.76 million thereof, has recognised insurance claim receivable of ' 44.38 million to the extent of aforesaid losses.
The company is in the process of determining final claim for loss of inventories. With regard to property, plant and equipment,the
Company is in the process of determining loss for book value and claim for reinstatement of asset based on estimated cost. The
aforementioned losses and corresponding credit arising from insurance claim receivable has been presented on a net basis
('12.50 million) under exceptional items in the above financial statements for the year ended March 31, 2025.

(viii) The Company has not identified any transaction
with Companies struck off under section 248 of the
Companies Act, 2013 or section 560 of the Companies
Act, 1956 and has no balances outstanding from
struck of Companies.

(ix) The Company has complied with the number of
layers prescribed under clause (87) of section 2 of the
Act read with Companies (Restriction on number of
Layers) Rules, 2017.

(x) The Company does not have any charges or
satisfaction of charges which is yet to be registered
with Registrar of Companies beyond the statutory
period.

(xi) The Company has not traded or invested in Crypto
currency or Virtual Currency during the financial
year.

53 The Company evaluates events and transactions that
occur subsequent to the balance sheet date but prior to
the approval of the financial statements to determine
the necessity for recognition and / or reporting of any of
these events or transactions in the financial statements.
As on May 27, 2025, there are no subsequent events to be
recognized or reported.

Notes:

(a) Since there is increase in profit after tax during the current year, return on equity is increased from 0.68% to 1.71%

(b) Since there is increase in turnover during the current year, trade receivable turnover ratio is increased from 3.54 to
4.48

(c) Since there is increase in revenue from operations, net capital turnover ratio is highr as compared to previous financial year.

(d) Since there is increase in net profit for the year, net profit ratio is higher as compared to previous financial year.

(e) Since there is increase in earnings before interest and tax for the year, return on capital employed is higher as compared to
previous financial year.

(f) Since there is increase in net profit for the year, return on investments is higher as compared to previous financial year.

52 Other Statutory Information :

(i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies) other than as disclosed
below, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(ii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(iii) The Company do not have any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961.

(iv) Title deeds of all the Immovable Property are held in name of the Company.

(v) The Company has not entered into any scheme of arrangement which has an accounting impact on the current or previous
financial year.

(vi) There are no proceedings which have been initiated or pending against the Company for holding any benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(vii) The Company has not been declared a wilful defaulter by any bank or financial institution.

For and on behalf of the Board of Directors

Suresh J. Patel Rajarshi Ghosh

Chairman & Managing Director Director - HSE

DIN : 00007400 DIN : 08715159

Mayur B. Padhya Ashutosh B. Bhatt

Chief Financial Officer Company Secretary

Place : Ahmedabad
Date : 27^th May,2025