g) Provisions (other than for employee benefits)

A provision is recognised if, as a result of a past
event, the Company has a present legal or
constructive obligation that can be estimated
reliably, and it is probable that an outflow of
economic benefits will be required to settle the
obligation. Provisions are determined by
discounting the expected future cash flows
(representing the best estimate of the expenditure
required to settle the present obligation at the
balance sheet date) at a pre-tax rate that reflects
current market assessments of the time value of
money and the risks specific to the liability. The
unwinding of the discount is recognised as finance
cost. Expected future losses are not provided for.

h) Contingent liabilities and contingent assets

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 usually arise from unplanned or
other unexpected events that give rise to the
possibility of an inflow of economic benefits to the
entity. Contingent assets are recognized when the
realisation of income is virtually certain, then the
related asset is not a contingent asset and its
recognition is appropriate.

A contingent asset is disclosed where an inflow of
economic benefits is probable.

i) Commitments

Commitments include the amount of purchase order
(net of advances) issued to parties for completion of

assets. Provisions, contingent liabilities, contingent
assets and commitments are reviewed at each
reporting date.

j) Revenue

Revenue from contract with customers

Under Ind AS 115, the Company recognized revenue
when (or as) a performance obligation was satisfied,

i.e. when 'control' of the goods underlying the
particular performance obligation were transferred
to the customer.

Further, revenue from sale of goods is recognized
based on a 5-Step Methodology which is as follows:

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligation in
contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the
performance obligations in the contract

Step 5: Recognise revenue when (or as) the entity
satisfies a performance obligation

Deferred revenue is recognised when there is
billings in excess of revenues.

The Company disaggregates revenue from
contracts with customers by geography.

Use of significant judgements in revenue
recognition:

- The Company’s contracts with customers could
include promises to transfer multiple products
and services to a customer. The Company
assesses the products / services promised in a
contract and identifies distinct performance
obligations in the contract. Identification of
distinct performance obligation involves
judgement to determine the deliverables and
the ability of the customer to benefit
independently from such deliverables.

- Judgement is also required to determine the
transaction price for the contract. The
transaction price could be either a fixed amount
of customer consideration or variable
consideration with elements such as cash
discount, trade discount, and rebate. The
transaction price is also adjusted for the effects
of the time value of money if the contract
includes a significant financing component.
Any consideration payable to the customer is
adjusted to the transaction price, unless it is a
payment for a distinct product or service from
the customer.

The estimated amount of variable consideration
is adjusted in the transaction price only to the
extent that it is highly probable that a significant
reversal in the amount of cumulative revenue
recognised will not occur and is reassessed at
the end of each reporting period. The Company
allocates the elements of variable
considerations to all the performance
obligations of the contract unless there is
observable evidence that they pertain to one or
more distinct performance obligations.

- The Company uses judgement to determine an
appropriate standalone selling price for a
performance obligation. The Company
allocates the transaction price to each
performance obligation on the basis of the
relative standalone selling price of each distinct
product or service promised in the contract.

- The Company exercises judgement in
determining whether the performance
obligation is satisfied at a point in time or over a
period of time. The Company considers
indicators such as how customer consumes
benefits as services are rendered or who
controls the asset as it is being created or
existence of enforceable right to payment for
performance to date and alternate use of such
product or service, transfer of significant risks
and rewards to the customer, acceptance of
delivery by the customer, etc.

- Revenue for fixed-price contract is recognised
using percentage-of-completion method. The
Company uses judgement to estimate the
future cost-to-completion of the contracts
which is used to determine the degree of
completion of the performance obligation.

- Contract fulfilment costs are generally
expensed as incurred except for certain
expenses which meet the criteria for
capitalisation. Such costs are amortised over
the contractual period. The assessment of this
criteria requires the application of judgement, in
particular when considering if costs generate
or enhance resources to be used to satisfy
future performance obligations and whether
costs are expected to be recovered.

Rental income

Rental income from investment property is
recognised as part of other income in profit or loss
on a straight-line basis over the term of the lease.
Lease incentives granted are recognised as an
integral part of the total rental income, over the term
of the lease.

Government grants

Government grants are recognised initially as

deferred income at fair value when there is
reasonable assurance that they will be received and
the Company will comply with the conditions
associated with the grant; they are then recognised
in profit or loss as other income on a systematic
basis.

Government grants related to capital assets is
recognised on a straight line basis over the useful
life of the related assets. Grants that compensate
the Company for expenses incurred are recognised
in profit or loss on a systematic basis in the periods in
which such expenses are recognised.

Export benefits and sales tax incentives

Export benefits and sales tax incentives under
various schemes notified by the government are
recognised on accrual basis when no significant
uncertainties as to the amount of consideration that
would be derived and as to its ultimate collection
exist.

Trade Receivables

Trade receivables are amounts due from customers
for goods sold or services performed in the ordinary
course of business. They are generally due for
settlement within one year and therefore are all
classified as current. Where the settlement is due
after one year, they are classified as non-current.
Trade receivables are recognised initially at the
amount of consideration that is unconditional unless
they contain significant financing components,
when they are recognised at fair value. The
Company holds the trade receivables with the
objective to collect the contractual cash flows and
therefore measures them at amortised cost. Trade
receivables are disclosed in Note 12.

Contract Liabilities

A contract liability is the obligation to transfer goods
or services to a customer for which the Company
has received consideration (or an amount of
consideration is due) from the customer. If a
customer pays consideration before the Company
transfers goods or services to the customer, a
contract liability is recognised when the payment is
made or the payment is due (whichever is earlier).
Contract liabilities are recognised as revenue when
the Company performs under the contract. Contract
Liabilities are disclosed in Note 24 as Advances
received from customers.

k) Recognition of interest income or expense

Interest income or expense is recognised using the
effective interest method.

The ‘effective interest rate’ is the rate that exactly
discounts the estimated future cash payments or
receipts through the expected life of the financial
instrument to:

a. the gross carrying amount of the financial
asset; or

b. the amortised cost of the financial liability.

In calculating interest income and expense, the
effective interest rate is applied to the gross
carrying amount of the asset (when the asset is not
credit-impaired) or to the amortised cost of the
liability. However, for financial assets that have
become credit-impaired subsequent to initial
recognition, interest income is calculated by
applying the effective interest rate to the amortised
cost of the financial asset. If the asset is no longer
credit-impaired, then the calculation of interest
income reverts to the gross basis.

l) Borrowing costs

Borrowing costs are interest and other costs
(including exchange differences arising from foreign
currency borrowings to the extent that they are
regarded as an adjustment to interest costs)
incurred by the Company in connection with the
borrowing of funds. Borrowing costs directly
attributable to acquisition or construction of an
asset which necessarily take a substantial period of
time to get ready for their intended use are
capitalized as a part of cost of the asset. Other
borrowing costs are recognised as an expense in
the period in which they are incurred.

m) Income taxes

Income tax comprises current and deferred tax. It is
recognised in Statement of Profit and Loss except
to the extent that it relates to a business
combination or an item recognised directly in equity
or in other comprehensive income.

Current tax

Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable
in respect of previous years. The amount of current
tax reflects the best estimate of the tax amount
expected to be paid or received after considering
the uncertainty, if any, related to income taxes. It is
measured using tax rates (and tax laws) enacted or
substantively enacted at the end of the reporting
period in India.

Current tax assets and current tax liabilities are
offset only if there is a legally enforceable right to
set off the recognised amounts, and it is intended to
realise the asset and settle the liability on a net basis
or simultaneously.

Deferred tax

Deferred tax is recognised in respect of temporary

differences between the carrying amounts of the
assets and liabilities for financial reporting purposes
and the corresponding amounts used for taxation
purposes. Deferred tax is also recognised in respect
of carried forward tax losses (if any) and tax credits.

Deferred tax assets are recognised to the extent
that it is probable that future profits will be available
against which they can be used. Deferred tax assets
are reviewed at each reporting date and are
recognised to the extent that it is probable that the
related tax benefits will be realized. Deferred tax is
measured at the tax rates that are expected to apply
to the period when the asset is realized or the
liability is settled, based on the laws that have been
enacted or substantively enacted by the reporting
date.

The measurement of deferred tax reflects the tax
consequences that would follow from the manner in
which the Company expects, at the reporting date,
to recover or settle the carrying amount of its assets
and liabilities. For operations under tax holiday
scheme, deferred tax assets or liabilities, if any, have
been established for the tax consequences of those
temporary differences between the carrying value
of assets and liabilities and their respective tax
bases that reverse after the tax holiday ends.

Minimum Alternative tax

Minimum Alternative tax ('MAT') under the provisions
of Income-tax Act,1961 is recognised as current tax
in profit or loss. The credit available under the Act in
respect of MAT paid is adjusted from deferred tax
liability only when and to the extent there is
convincing evidence that the company will pay
normal income tax during the period for which the
MAT credit can be carried forward for set-off
against the normal tax liability. MAT credit
recognised adjusted from deferred tax liability is
reviewed at each balance sheet date and written
down to the extent the aforesaid convincing
evidence no longer exists.

The Company has opted for the new tax regime u/s
115BAA w.e.f. April 1, 2022. Hence, provisions of
Minimum Alternative tax (MAT) are not applicable to
the Company.

n) Leases

Leases under Ind AS 116

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

i) The company as a lessee

The Company's lease asset classes primarily
consist of leases for buildings and plant &
machinery. The Company, at the inception of a
contract, assesses whether the contract is a
lease or not. A contract is, or contains, a lease if
the contract conveys the right to control the
use of an identified asset for a time in exchange
for a consideration.

The Company elected to use the following
practical expedients on initial application:

1. Applied a single discount rate to a portfolio
of leases of similar assets in similar economic
environment with a similar end date.

2. Applied the exemption not to recognize right-
of-use assets and liabilities for short term
leases and leases where underlying asset is of
low value.

3. Excluded the initial direct costs from the
measurement of the right-of-use asset at the
date of initial application.

4. Applied the practical expedient to
grandfather the assessment of which
transactions are leases. Accordingly, Ind AS 116
is applied only to contracts that were
previously identified as leases under Ind AS 17.

Right of use assets

The Company recognises a right-of-use asset and a
lease liability at the lease commencement date. The
right-of-use asset is initially measured at cost,
which comprises the initial amount of the lease
liability adjusted for any lease payments made at or
before the commencement date, plus any initial
direct costs incurred and an estimate of costs to
dismantle and remove the underlying asset or to
restore the underlying asset or the site on which it is
located, less any lease incentives received.

The right-of-use assets is subsequently measured
at cost less any accumulated depreciation,
accumulated impairment losses, if any and adjusted
for any remeasurement of the lease liability. The
right-of-use assets is depreciated using the
straight-line method from the commencement date
over the shorter of lease term or useful life of
right-of-use asset. The estimated useful lives of
right-of-use assets are determined on the same
basis as those of property, plant and equipment.
Right-of-use assets are tested for impairment
whenever there is any indication that their carrying
amounts may not be recoverable. Impairment loss, if
any, is recognised in the statement of profit and loss.

Lease Liabilities

The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted using the interest
rate implicit in the lease or if that rate cannot be
readily determined, the Company's incremental
borrowing rate. The lease liability is subsequently
remeasured by increasing the carrying amount to
reflect interest on the lease liability, reducing the
carrying amount to reflect the lease payments made
and remeasuring the carrying amount to reflect any
reassessment or lease modifications or to reflect
revised in-substance fixed lease payments. The
company recognises the amount of the re¬
measurement of lease liability due to modification as
an adjustment to the right-of-use asset and
statement of profit and loss depending upon the
nature of modification. Where the carrying amount
of the right-of-use asset is reduced to zero and
there is a further reduction in the measurement of
the lease liability, the Company recognises any
remaining amount of the re-measurement in
statement of profit and loss.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-of-
use assets and lease liabilities for short-term leases
and leases for which the underlying asset is of low
value. The Company recognises the lease payments
associated with these leases as an expense in the
Statement of Profit or Loss over the lease term.

ii) The Company as a lessor

At the inception of the lease the Company classifies
each of its leases as either an operating lease or a
finance lease , based on whether the lease transfers
substantially all the risks and rewards incidental to
ownership of the underlying asset to the lessee.
Leases that transfer substantially all risks and
rewards of ownership are classified as finance
leases, while all other leases are classified as
operating leases. The Company recognises lease
payments received under operating leases as
income on a straight- line basis over the lease term.
In case of a finance lease, finance income is
recognised over the lease term based on a pattern
reflecting a constant periodic rate of return on the
lessor's net investment in the lease. When the
Company is an intermediate lessor it accounts for its
interests in the head lease and the sub-lease
separately. It assesses the lease classification of a
sub-lease with reference to the right-of-use asset
arising from the head lease, not with reference to
the underlying asset. If a head lease is a short term
lease to which the Company applies the exemption
described above, then it classifies the sub-lease as
an operating lease.

If an arrangement contains lease and non-lease
components, the Company applies Ind AS 115
Revenue to allocate the consideration in the
contract.

o) Financial instruments

A Financial instrument is any contract that gives rise
to a financial asset of one entity and a financial
liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair
value plus, in the case of financial assets not
recorded at fair value through profit or loss,
transaction costs that are attributable to the
acquisition of the financial asset. Purchases or sales
of financial assets that require delivery of assets
within a time frame established by regulation or
convention in the market place (regular way trades)
are recognised on the trade date, i.e., the date that
the Company commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial
assets are classified in four categories:

• Debt instruments at amortised cost

• Debt instruments at fair value through other
comprehensive income (FVOCI)

• Debt instruments, derivatives and equity
instruments at fair value through profit or loss
(FVPL)

• Equity instruments measured at fair value
through other comprehensive income (FVOCI)

Debt instruments at amortised cost

A ‘debt instrument’ is measured at the amortised
cost if the asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows, and contractual terms of the
asset give rise on specified dates to cash flows that
are solely payments of principal and interest (SPPI)
on the principal amount outstanding.

After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method. The effective
interest rate is the rate that exactly discounts
estimated future cash payments or receipts through
the expected life of the financial instrument to the
gross carrying amount of the financial asset or the
amortised cost of the financial liability. 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 other income in the
Statement of Profit and Loss. The losses arising from
impairment are recognised in the Statement of Profit
and Loss.

Debt instrument at FVOCI

A ‘debt instrument’ is classified as at the FVOCI if the
objective of the business model is achieved both by
collecting contractual cash flows and selling the
financial assets, and the asset’s contractual cash
flows represent SPPI.

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

Debt instrument at FVPL

FVPL is a residual category for debt instruments.
Any debt instrument, which does not meet the
criteria for categorization as at amortised cost or as
FVOCI, is classified as at FVPL. In addition, at initial
recognition, the Company may irrevocably elect to
designate a debt instrument, which otherwise
meets amortised cost or FVOCI criteria, as at FVPL.
However, such adoption is allowed only if doing so
reduces or eliminates a measurement or recognition
inconsistency (referred to as ‘accounting
mismatch’).

Debt instruments included within the FVPL
category are measured at fair value with all changes
recognised in the Statement of Profit and Loss.

Equity investments

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 FVPL.
For all other equity instruments, the Company may
make an irrevocable adoption to present in other
comprehensive income subsequent changes in the
fair value. The Company makes such adoption 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 FVOCI, then all fair value changes
on the instrument, excluding dividends, are
recognised in the OCI. There is no recycling of the
amounts from OCI to the Statement of Profit and
Loss, even on sale of investment. However, the

Company may transfer the cumulative gain or loss to
retained earnings.

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

Impairment of financial assets

The Company recognises loss allowances for
expected credit loss on financial assets measured at
amortised cost. At each reporting date, the
Company assesses whether financial assets carried
at amortised cost are credit- impaired. A financial
asset is ‘credit-impaired’ when one or more events
that have detrimental impact on the estimated
future cash flows of the financial assets have
occurred.

Evidence that the financial asset is credit-impaired
includes the following observable data:

- significant financial difficulty of the borrower or
issuer;

- the breach of contract such as a default or
being past due for 90 days or more;

- the restructuring of a loan or advance by the
Company on terms that the Company would
not consider otherwise;

- it is probable that the borrower will enter
bankruptcy or other financial re-organisation;
or

- the disappearance of active market for a
security because of financial difficulties.

The Company measures loss allowances at an
amount equal to lifetime expected credit losses,
except for the following, which are measured as
12 month expected credit losses:

- Bank balances for which credit risk (i.e. the risk
of default occurring over the expected life of
the financial instrument) has not increased
significantly since initial recognition.

Loss allowances for trade receivables are always
measured at an amount equal to lifetime expected
credit losses. Lifetime expected credit losses are the
expected credit losses that result from all possible
default events over the expected life of a financial
instrument.

12-month expected credit losses are the portion of
expected credit losses that result from default
events that are possible within 12 months after the
reporting date (or a shorter period if the expected
life of the instrument is less than 12 months). In all
cases, the maximum period considered when
estimating expected credit losses is the maximum
contractual period over which the Company is

exposed to credit risk.

When determining whether the credit risk of a
financial asset has increased significantly since
initial recognition and when estimating expected
credit losses, the Company considers reasonable
and supportable information that is relevant and
available without undue cost or effort. This includes
both quantitative and qualitative information and
analysis, based on the Company’s historical
experience and informed credit assessment and
including forward-looking information.

Measurement of expected credit losses

Expected credit losses are a probability-weighted
estimate of credit losses. Credit losses are measured
as the present value of all cash shortfalls (i.e.
difference between the cash flow due to the Group
in accordance with the contract and the cash flow
that the Company expects to receive).

Presentation of allowance for expected credit
losses in the balance sheet

Loss allowance for financial assets measured at the
amortised cost is deducted from the gross carrying
amount of the assets.

Write-off

The gross carrying amount of a financial asset is
written off (either partially or in full) to the extent
that there is no realistic prospect of recovery. This is
generally the case when the Company determines
that the trade receivables do not have assets or
sources of income that could generate sufficient
cash flows to repay the amount subject to the write¬
off. However, financial assets that are written off
could still be subject to enforcement activities in
order to comply with the Company’s procedure for
recovery of amounts due.

Derecognition of financial assets

A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is primarily derecognized (i.e., removed from
the Company’s balance sheet) when:

- The rights to receive cash flows from the asset
have expired, or

- The Company has transferred its rights to
receive cash flows from the asset or has
assumed an obligation to pay the received cash
flows in full without material delay to a third
party under a ‘pass-through’ arrangement; and
either (a) the Company has transferred
substantially all the risks and rewards of the
asset, or (b) the Company has neither
transferred nor retained substantially all the
risks and rewards of the asset, but has
transferred control of the asset.

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

Financial liabilities

Financial liabilities are classified as measured at
amortised cost or FVPL. A financial liability is
classified as at FVPL if it is classified as
held-for-trading, or it is a derivative or it is
designated as such on initial recognition. Financial
liabilities at FVPL are measured at fair value and net
gains and losses, including any interest expense, are
recognised in Statement of Profit and Loss. Other
financial liabilities are subsequently measured at
amortised cost using the effective interest method.
Interest expense and foreign exchange gains and
losses are recognised in Statement of Profit and
Loss. Any gain or loss on derecognition is also
recognised in Statement of Profit and Loss.

Derecognition of financial liabilities

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same lender
on substantially different terms, or the terms of an
existing liability are substantially modified, such an
exchange or modification is treated as the
derecognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognised in the
Statement of Profit and Loss.

Derivative financial instruments

The Company uses various types of derivative
financial instruments to hedge its currency and
interest risk etc. Such derivative financial
instruments are initially recognised at fair value on
the date on which a derivative contract is entered
into and are subsequently re-measured at fair value.
Derivatives are carried as financial assets when the
fair value is positive and as financial liabilities when
the fair value is negative.

Offsetting

Financial assets and financial liabilities are offset

and the net amount presented in the Balance Sheet
when, and only when, the Company currently has a
legally enforceable right to set off the amounts and
it intends either to settle them on a net basis or to
realise the asset and settle the liability
simultaneously.

p) Impairment of non-financial assets

The Company’s non-financial assets other than
inventories and deferred tax assets, are reviewed at
each reporting date to determine if there is
indication of any impairment. If any such indication
exists, then the asset’s recoverable amount is
estimated. For impairment testing, assets that do
not generate independent cash flows are grouped
together into cash generating units (CGUs). Each
CGU represents the smallest Company of assets
that generate cash inflows that are largely
independent of the cash inflows of other assets or
CGUs.

The recoverable amount of as CGU (or an individual
asset) is the higher of its value in use and fair value
less cost to sell. Value in use is based on the
estimated future cash flows, discounted to their
present value using a pre-tax discount rate that
reflects current assessments of the time value of
money and the risks specific to the CGU (or the
asset).

The Company’s corporate assets (e.g., central office
building for providing support to CGU) do not
generate independent cash inflows. To determine
impairment of a corporate asset, recoverable
amount is determined for the CGUs to which the
corporate asset belongs.

An impairment loss is recognised whenever the
carrying amount of an asset or its cash generating
unit exceeds its recoverable amount. Impairment
losses are recognised in Statement of Profit and
Loss. An impairment loss is reversed if there has
been a change in the estimates used to determine
the recoverable amount. Such a reversal is made
only to the extent that the asset’s carrying amount
does not exceed the carrying amount that would
have been determined net of depreciation or
amortisation, if no impairment loss had been
recognised.

q) Operating Segments

An operating segment is a component of the
Company that engages in business activities from
which it may earn revenues and incur expenses,
including revenues and expenses that relate to
transactions with any of the Company’s other
components, and for which discrete financial
information is available. All operating segments’
operating results are reviewed regularly by the

Company’s Chief Operating Decision Maker (CODM)
to make decisions about resources to be allocated
to the segments and assess their performance.

r) Cash and cash equivalents

For the purpose of presentation in the statement of
cash flows, cash and cash equivalents include cash
in hand, demand deposits held with banks, other
short-term highly liquid investments with original
maturities of three months or less that are readily
convertible to known amounts of cash and which
are subject to an insignificant risk of changes in
value.

s) Cash flow statement

Cash flows are reported using the indirect method,
whereby profit for the period is adjusted for the
effects of transactions of a non-cash nature, any
deferrals or accruals of past or future operating
cash receipts or payments and item of income or
expenses associated with investing or financing
cash flows. The cash flows from operating, investing
and financing activities of the Company are
segregated.

t) Earnings per share

Basic earnings/ (loss) per share are calculated by
dividing the net profit/ (loss) for the year attributable
to equity shareholders by the weighted average
number of equity shares outstanding during the
year. The weighted average number of equity
shares outstanding during the period is adjusted for
events of bonus issue and share split. For the
purpose of calculating diluted earnings/ (loss) per
share, the net profit or loss for the period
attributable to equity shareholders and the

weighted average number of shares outstanding
during the year are adjusted for the effects of all dilutive
potential equity shares.

u) Foreign currency transactions

i) Initial recognition

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

ii) Measurement at the reporting date

Monetary assets and liabilities denominated in
foreign currencies are translated into the functional
currency at the exchange rate at the reporting date.
Non-monetary assets and liabilities that are
measured at fair value in a foreign currency are
translated into the functional currency at the
exchange rate when the fair value was determined.
Non-monetary assets and liabilities that are
measured based on historical cost in a foreign
currency are translated at the exchange rate at the
date of the transaction. Exchange differences on
restatement/settlement of all monetary items
are recognised in profit or loss. They are deferred in
other comprehensive income if they relate to
qualifying cash flow hedges.

Foreign exchange differences on foreign currency
borrowings are presented in the Statement of profit
and loss, within finance costs to the extent that they
are regarded as an adjustment to interest costs. All
other foreign exchange gains and losses are
presented in the Statement of profit and loss on a
net basis within other operating revenue or other
expenses.

(iii) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 1 per share. Accordingly, all equity shares
rank equally with regard to dividends and share in the Company’s residual assets on winding up. Each holder of
equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The
dividend proposed by the Board of Directors is subject to approval of the shareholders (except for interim dividend)
in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will
be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The
distribution will be in proportion to the number of equity shares held by the shareholders.

Note:

18 (a) Term Loan of:

i. Rs. 592.35 crores (31 March 2025 - Rs.465.76 crore) are secured by a first pari passu charge on all the fixed
assets (immovable and movable) of the Company, both present and future along with equitable mortgage of
factory land and building at Saila Khurd except office premises situated at Industrial Area, Chandigarh which
are exclusively mortgaged with HDFC Bank Limited and second pari passu charge on the current assets.
The said loans are also secured by personal guarantee of Promoter directors.

ii. Rs 10.89 crores (31 March 2025 - Rs. 13.59 crores) is secured by exclusive charge on the office premises at
Industrial Area Chandigarh and is also secured by personal guarantee of Promoter directors.

iii. Rs.18.73 crores (31 March 2025 - Rs. 24.79 crores) is secured by exclusive charge on machinery.

iv. Rs. 50.00 Crores (31 March 2025 - Nil) is secured by a subservient and continuing charge by way of
hypothecation over current assets, 10% security deposit and personal guarantee of Promoter directors.

v. Rs. 3.24 Crores (31 March 2025 - 3.15 Crores) has been adjusted in the secured loans pursuant to the
accounting treatments as recommended in IND AS 109.

vi. During the current year, the nominal (floating) interest rate was in the range of 7.50% to 13.00% per annum
(31 March 2025 - 8.50% to 9.65% per annum).

vii. The term loans are repayable in quarterly installments with tenure ranging from 3 - 7 years.

viii. FCNR’B Loan of USD 19.16 Million (31 March 2025 - Nil) equivalent to Rs. 181.34 Crores (31 March 2025 - Nil)
is included in Secured Term Loan of Rs. 668.73 Crores (31 March 2025 - Rs. 501 crore).

18 (b) Vehicle loans of Rs 3.73 crores (31 March 2025 - Rs. 3.96 crores) are secured against hypothecation of the

specified vehicles purchased from proceeds of the said loans. The fixed rate of interest is in range from 8.20%
to 10.59% per annum (31 March 2025 - 8.40% to 10.59% per annum). The vehicle loans are repayable in monthly
equal installment with tenure ranging from 1-5 year

18 (c) Unsecured loan- Rs. 50.00 Crores (31 March 2025 - Nil) unsecured terms loans backed by personal guarantee

of Promoter directors.

18 (d) Public deposits carry interest rate ranging between 8.50% to 9.75% per annum (31 March 2025 - 8.50% to

9.75% per annum) and carry a maturity period from 12 to 36 months from the respective date of deposits.

18 (e) The fixed rate of interest on loans from promoters, directors and relatives in current year is at rate of 9% per

annum (31 March 2025: 9% per annum). As per the Company's arrangements with these parties, the amount has
been considered as long term, repayable based on mutually agreed terms.

18 (f) Secured loans - repayable on demand

Working capital loans are secured by hypothecation of all current assets, second charge on the fixed assets of the
Company and personal guarantees of Promoter directors. The floating rate of interest on the loans is 7.61% to 9.60%
per annum (31 March 2025: 8.75% to 9.60% per annum).

18 (g) The term loans are repayable in quarterly installments with tenure ranging from 3 - 7 years.

Note (b): Detail of corporate social responsibility expenditure

(i) Gross amount required to be spent by the company during the year is Rs. 4.60 crore (31 March 2025: Rs.
3.59 crore)

(ii) Amount approved by the Board to be spent during the year is Rs. 4.60 crore (31 March 2025: Rs. 3.60
crore)

(iii) Details of amount spent during the year:

(iv) Nature of CSR Activities: Village school repair, street construction, assistance for education, solar lights,
healthcare, water and sewerage services in nearby areas

(v) Details of related party transactions : NA

(vi) Where a provision is made with respect to a liability incurred by entering into a contractual obligation, the
movements in the provision during the year should be shown separately: NA

B. Fair value hierarchy

All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy,
described as follows, based on the lowest level input that is significant to the fair value measurements as a whole.

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: valuation techniques for which the lowest level inputs that has a significant effect on the fair value measurement
are observable, either directly or indirectly.

Level 3: valuation techniques for which the lowest level input which has a significant effect on fair value measurement is
not based on observable market data.

There are no transfers between Level 1, Level 2 and Level 3 during the year ended 31 March 2026 and 31 March 2025.

C. Financial risk management

(i) Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s
risk management framework. The Company’s risk management policies are established to identify and analyse the
risk faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits.
Risk management policies and systems are reviewed regularly to effect changes in market conditions and
Company's activities. The Company, through its training and management standards and procedures, aims to
maintain discipline and constructive control environment in which all employees understand their roles and
obligations.

The Company’s audit committee oversees how management monitors compliance with Company’s risk management
policies and procedures, and reviews the adequacy of the risk management framework in relation to risk faced by the
Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular
and ad hoc reviews of risk management controls and procedures, the result of which are reported to audit committee.

The Company has exposure to the following risks arising from financial instruments:

- credit risk (See (ii))

- liquidity risk (See (iii)); and

- market risk (See (iv))

(ii) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to
meet its contractual obligations. The carrying amount of financial assets represents the maximum credit risk
exposure and arises principally from the Company's receivable from customers and loans. The maximum exposure to
credit risks is represented by the total carrying amount of these financial assets in the Balance Sheet:

Trade receivables

The Company has established a credit policy under which each new customer is analysed individually for
creditworthiness before the payment and delivery terms and conditions are offered. The Company’s review includes
external ratings, if they are available, financial statements, credit agency information, industry information and
business intelligence. The Company evaluates the customer credentials carefully from trade sources before
appointment of any distributor and only financially sound parties are appointed as distributors. The Company
secures adequate deposits from its distributor and hence risk of bad debt is limited. The credit outstanding is sought
to be limited to the sum of advances/deposits and credit limit determined by the company.

The following table gives details in respect of percentage of revenues generated from top customer and top five
customers:

The loans primarily represents security deposits, inter-company deposits given and loans given to employees. The
management believes these to be high quality assets with negligible credit risk. The management believes the parties
to which these deposits and loans have been given have strong capacity to meet the obligations and where the risk
of default is negligible or nil and accordingly no allowance for expected credit loss has been provided on these
financial assets. Credit risk on cash and cash equivalents and bank deposits is limited as the Company generally
invests in deposits with banks with high credit ratings assigned by domestic credit rating agencies.

(iii) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial assets. The Company’s approach to manage
liquidity is to have sufficient liquidity to meet it’s liabilities when they are due, under both normal and stressed
circumstances, without incurring losses or risking damage to the Company’s reputation.

Management manages the liquidity risk by monitoring cash flow forecasts on a periodic basis and maturity profiles of
financial assets and liabilities. This monitoring takes into account the accessibility of cash and cash equivalents and
additional undrawn financing facilities.

(iv) Market Risk

(a) Commodity price risk

The Company is exposed to the movement in price of key raw materials in domestic and international markets. The
Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in
operations. The Company manages fluctuations in raw material price through hedging in the form of advance
procurement when the prices are perceived to be low and also enters into advance buying contracts as strategic
sourcing initiative in order to keep raw material and prices under check to the extent possible.

(b) Interest rate risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the
Company’s borrowings with floating interest rates.

Exposure to interest rate risk

The Company is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates.
Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The risk is
managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings. The
exposure of the Company’s borrowing to interest rate changes as reported to the management at the end of the
reporting period are as follows:

(c) Foreign currency risk

Foreign currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes
in foreign exchange rates. The Company is exposed to the effects of fluctuation in the prevailing foreign currency
exchange rates on its financial position and cash flows. Exposure arises primarily due to exchange rate fluctuations
between the functional currency and other currencies from the Company’s operating, investing and financing
activities.

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk
of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a
bank or a financial institution. These derivative financial instruments are valued based on quoted prices for similar
assets and liabilities in active markets or inputs that are directly or indirectly observable in the marketplace.

37 Capital management

Risk management

The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and
to sustain future development of the business. The management monitors the return on capital. The Company monitors
capital using a ratio of 'adjusted net debt' to 'total equity'. For this purpose, adjusted net debt is defined as total
borrowings, net of cash and cash equivalents and other bank balances. Equity comprises all components of equity (as
shown in the Balance Sheet).

For details about the related employee benefit expenses, refer to note 30.

II. Defined contribution plan

The Company’s provident fund scheme and Employee’s State Insurance (ESI) fund scheme are defined contribution
plans. The Company has recorded expenses of Rs. 5.65 crore (31 March 2025: Rs. 5.02 crore) under provident fund
scheme and Rs.0.43 crore (31 March 2025: Rs. 0.40 crore) under ESI scheme. These have been included in note 30
Employees benefits expenses, in the Statement of Profit and Loss.

III Defined benefit plan

Gratuity (funded)

The employees’ gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The
present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which
recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit
separately to build up the final obligation. The Company made annual contributions to the LIC of India.

The above defined benefit plan exposes the Company to following risks:

Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined
benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increase in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal,
disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and
depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate
withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per
year as compared to a long service employee.

The Company actively monitors how the duration and the expected yield of the investments are matching the expected
cash outflows arising from the employee benefit obligations. The Company has not changed the processes used to
manage its risks from previous periods. The funds are managed by specialised team of Life Insurance Corporation of
India.

a) Funding

Gratuity is a funded benefit plan for qualifying employees. 100% of the plan assets are managed by LIC. The assets
managed are highly liquid in nature and the Company does not expect any significant liquidity risks.

The expected contribution to defined benefit plan for the next year is Rs. 1.83 crore

The following table sets out the status of the defined benefit plan as required under Ind-AS 19 - Employee Benefits:

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In
practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the
sensitivity of the defined benefit obligation to significant actuarial assumptions the same methods (present value of
defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been
applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior
period.

E. Terms and Conditions

All transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions and
within the ordinary course of business. Outstanding balances at the year end are unsecured and settlement occurs in cash.
T ransactions relating to dividend are on the same terms and conditions that are offered to other shareholders.

42 Segment information

The Company is primarily engaged in the business of manufacture and sales of paper, mainly in the domestic markets. The
Board of Directors of the Company, who have been identified as being the Chief Operating Decision Maker (CODM),
evaluate the Company's performance and allocate resources based on the analysis of various performance indicators of the
Company as a single unit. Accordingly, there is no reportable segment or any entity wide disclosures which are applicable to
the Company.

44 Additional disclosure / Regulatory Information as required by Notification no. GSR 207(E) dated 24.03.2021
which are not covered in any of the notes above

(i) Loan or advances granted to the promoters, directors and KMPs and the related parties:

No loan or advances in the nature of loans have been granted to the promoters, directors, key managerial
persons and the related parties (as defined under the Companies Act, 2013), either severally or jointly with
any other person that are:

(a) repayable on demand or

(b) without specifying any terms or period of repayment

(ii) No proceedings 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.

(iii) Reconciliation of quarterly statement of current assets filed with banks or financial institutions

The quarterly statement of current assets filed, during the year, with banks are in agreement with books of
accounts.

(iv) Wilful Defaulter

No bank has declared the company as "wilful defaulter".

(v) Relationship with Struck off Companies:

There are no transaction with the companies whose name is struck off under section 248 of the Companies Act,
2013 or section 560 of Companies Act, 1956 during the year ended 31 March 2026 and the year ended 31 March
2025.

(vi) Registration of charges or satisfaction with Registrar of Companies:

All applicable cases where registration of charges or satisfaction is required with Registrar of Companies have
been done. No registration or satisfaction is pending at end of financial year 2025-26 beyond the stipulated
period.

45 Previous Year's figures have been regrouped/ reclassified wherever considered necessary to make them
comparable with the current year's classification/ disclosure.