I Provisions & Contingent Liabilities

(i) Provisions

Provisions are recognised when the Company has a present
obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the
obligation. Provisions are reviewed at each reporting period
and are adjusted to reflect the current best estimate.

(ii) Contingencies

Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly within
the control of the Company or a present obligation that
arises from past events where it is either not probable that
an outflow of resources will be required to settle or a
reliable estimate of the amount cannot be made.
Information on contingent liability is disclosed in the Notes
to the Financial Statements. Contingent assets are not
recognized in financial statements but are disclosed, if any.

J Revenue Recognition

Revenue is measured at the fair value of the consideration
received or receivable and it is probable that future economic
benefits will flow to the entity. Amount of sales are net of goods
and service tax, sale returns, trade discounts and rebates but
inclusive of excise duty.

Revenue from sale of products is recognized when the
significant risks and rewards of ownership of the products have
been transferred to the buyer, and the amount of revenue can be
measured reliably."

Company continues to account for export benefits on accrual
basis based upon the concept of accrual in the year of
utilisation of advance licences.

Dividend income is recognized when the right to receive the
income is established.

Interest income is recognised, when no significant uncertainty as
to measurability or collectblitiy exists, on a time proportion
basis taking into account the amount outstanding and the
applicable interest rate , using the effective interest rate method
(EIR).

K Foreign Currency Conversions/Transactions

Foreign Currency Transactions are recorded at the exchange
rates prevailing on the date of the transactions. Gains and losses
arising out of subsequent fluctuations are accounted for on
actual payments or realisations as the case may be. Monetary
assets and liabilities denominated in foreign currency as on
Balance Sheet date are translated into functional currency at the
exchange rates prevailing on that date and Exchange differences
arising out of such conversion are recognised in the Statement
of Profit and Loss.

L Income Taxes

Income tax expense for the year comprises of current tax and
deferred tax. It is recognised in the Statement of Profit and Loss
except to the extent it relates to any business combination or to
an item which is recognised directly in equity or in other
comprehensive income.
a) Current Tax

Current tax expense is made on the basis of estimated
taxable income for the current accounting period in
accordance with the provisions of Income Tax Act, 1961 and
judicial interpretations thereof as at the Balance Sheet date
and takes into consideration various deductions and
exemptions to which the Company is entitled to as well as

the reliance placed by the Company on the legal advices
received by it.
b) Deferred Tax

Deferred tax charge or credit reflects the tax effects of
temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the financial
statements . The deferred tax charge or credit and the
corresponding deferred tax liabilities or assets are
recognized using the tax rates that have been enacted or
substantively enacted by the Balance Sheet date. Deferred
tax assets are reviewed at each Balance Sheet date and are
written-down or written-up to reflect the amount that is
reasonably certain (as the case may be) to be realized.
Deferred tax assets and deferred tax liabilities are offset
when there is a legally enforceable right to set off assets
against liabilities representing current tax and where the
deferred tax assets and the deferred tax liabilities relate to
taxes on income levied by the same governing taxation law.
Deferred tax assets are recognised for all deductible
temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to
utilise those temporary differences and losses.

Current and deferred tax is recognised in profit or loss,
except to the extent that it relates to items recognised in
other comprehensive income or directly in equity. In that
case, the tax is recognised in other comprehensive income or
directly in equity, respectively."

M Employee Benefits

(i) Defined Contribution Plan

Employee benefits in the form of Provident Fund (with
Government Authorities) are considered as defined
contribution plan and the contributions are charged to the
statement of Profit & Loss of the year when the
contributions to the respective funds are due.

(ii) Defined Benefit Plan

Retirement benefits in the form of Gratuity and Long term
compensated leaves are considered as defined benefit
obligations and are provided for on the basis of an actuarial
valuation, using the projected unit credit method, as at the
date of the Balance Sheet. Other short term absences are
provided based on past experience of leave availed.

Actuarial Gains and losses arising from experience
adjustments and changes in actuarial assumptions are
recognized immediately in the balance sheet with a
corresponding debit or credit to retained earnings through
other comprehensive income (OCI) in the period in which
they occur. Re-measurements are not reclassified to profit or
loss in subsequent periods.

All other expenses related to defined benefit plans are
recognized in Statement of Profit and Loss as employee
benefit expenses.

N Borrowing Cost

General and Specific Borrowing Cost that are directly
attributable to the acquisition or construction or production of
qualifying assets are capitalized as part of the cost of such assets

upto the date when such assets are ready for intended use.
Qualified assets are assets that necessarily take a substantial
period of time to get ready for their intended use or sale.

Other borrowing costs are charged as expenses in the year in
which they are incurred.

Investment income earned on the temporary investment of
specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing cost eligible for
capitalisation.

O Earning Per Share

Basic Earning Per Share is calculated by dividing the net profit
for the period attributable to equity shareholders by weighted
average number of equity shares outstanding during the
period.

For the purpose of calculating diluted earnings per share, net
profit after tax during the year and the weighted average number
of shares outstanding during the year are adjusted for the effect
of all dilutive potential equity shares.

P Leases

The Company, as a lessee, recognises a right-of-use asset and a
lease liability for its leasing arrangements, if the contract
conveys the right to control the use of an identified asset

The contract conveys the right to control the use of an identified
asset, if it involves the use of an identified asset and the
Company has substantially all of the economic benefits from
use of the asset and has right to direct the use of the identified
asset. The cost of the right-of-use asset shall comprise of the
amount of the initial measurement of the lease liability adjusted
for any lease payments made at or before the commencement
date plus any initial direct costs incurred. The right-of-use assets
is subsequently measured at cost less any accumulated
depreciation, accumulated impairment losses, if any and
adjusted for any re-measurement of the lease liability. The right-
of-use assets is depreciated using the straight-line method from
the commencement date over the period of lease term.

The Company measures the lease liability at the present value of
the lease payments that are not paid at the commencement date
of the lease. The lease payments are discounted using the
incremental borrowing rate of the company.

For short-term and low value leases, the Company recognises
the lease payments as an operating expense on a straight-line
basis over the lease term.

Q Research & Development

Research and development costs are recognized as expense in
the period in which it is incurred.

The company does not incur any development expenditure
which are eligible for capitalisation under Para 57 of Ind AS 38.

R Statement of Cash Flows

Statement of cash flows is prepared in accordance with the
indirect method prescribed in Ind AS-7 ‘Statement of cash
flows.

(iii) Market Risk

Market Risk mainly relates to the investment & deposits. There is no regular business of company for making investment & deposits.
However, company manages the cash resources, borrowings strategies and ensuring compliance of the same with the guidelines &
directions of the Higher Management.

A) Foreign Currency Risk

The company operates internationally and portion of the business is transacted in several currencies and consequently the company is
exposed to foreign exchange risk through its sales in overseas and purchase from overseas suppliers in various foreign currencies.

The company evaluate exchange rate exposure arising from foreign currency transsaction and the company follow established risk
management policies. Foreign exchange exposure risk is largely covered by natural hedging by linking export proceeds with import
payments since company has exposures for both exports & imports and also uses the derivative like foreign exchange forward contracts to
hedge exposure to foreign risk to minimise the risk of any possible adverse impact.

B) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument may fluctuate because of changes in market
interest rate. In order to optimize the Company's position with regards to interest income and interest expenses and to manage the interest
rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating
rate financial instruments in its total portfolio.

C) Other Price Risk

The company's exposure towards price risk arises from investments held in equity shares & Mutual Fund are classified in balance sheet at
fair value through other comprehensive income & Fair value through Profit and Loss respectively. All of the company's equity investments
are publicaly traded and are listed on NSE and BSE .

Basis of Fair Value Hierarchy

The carrying amount of short term borrowings, trade payables, trade receivables, cash & cash equivalents and other financial assets and liabilities are
considered to be the same at their Fair values, due to their short term nature.

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:

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

Level 2: Inputs other than quoted price included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly
(i.e. derived from prices). The fair value of financial instruments that are not traded in an active market is determined using market approach and
valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If significant inputs
required to fair value an instrument are observable, the instrument is included in Level 2.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). If one or more of the significant inputs
is not based on observable market data, the fair value is determined using generally accepted pricing models based on a discounted cash flow
analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparty. The fair value of trade receivables, trade
payables and other current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term
nature. Where such items are non-current in nature, the same has been classified as Level 3 and fair value determined using discounted cash flow basis.
Similarly, unquoted equity instruments where most recent information to measure fair value is insufficient, or if there is a wide range of possible fair value