XI) Contingent Assets
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.
A contingent asset is not recognised but disclosed where an inflow of economic benefit is probable.
XII) Employees Benefit Expenses
a) Short Term Obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within
12 months after the end of the period in which the employees render the related service are recognised in
respect of employees' services up to the end of the reporting period and are measured at the amounts expected
to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in
the Balance Sheet.
b) Long Term Employee Benefit Obligations
The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the
end of the period in which the employees rendered the related service. They are, therefore, measured at the
present value of the expected future payments to be made in respect of services provided by employees up to
the end of the reporting period using the projected unit credit method. Remeasurements as a result of
experience adjustments and changes in the actuarial assumptions are recognised in the Statement of Profit and
Loss.
Under Ind AS, re-measurements of defined benefit plan are recognised in the Balance Sheet with a corresponding
debit or credit to equity through Other Comprehensive Income (OCI). Under Ind AS, an entity is permitted to
transfer amounts recognized in Other Comprehensive Income within equity. The Company has taken recourse of
the said provision and has transferred as at the date of transition to Ind AS.
Xlll) Dividend
Provision is made for the amount of any final dividend declared, being appropriately authorised in the Annual General
Meeting and no longer at the discretion of the Company.
Interim Dividends are recorded as a liability on the date of declaration by the Company's Board of Directors.
XIV) Leases
Ind AS 116 supersedes Ind AS 17 Leases including its appendices. The standard sets out the principles for the
recognition, measurement, presentation and disclosure of leases and requires lessees to recognise most leases on the
balance sheet.
The Company has adopted Ind AS 116 using the modified retrospective method of adoption under the transitional
provisions of the Standards, with the date of initial application on 1st April 2019. The Company also elected to use the
recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12 months or less
and do not contain a purchase option (short-term leases), and lease contracts for which the underlying asset is of low
value (low-value assets).
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys
the right to control the use of an identified asset for a period of time in exchange for consideration.
Company as a lessee
The Company applies a single recognition and measurement approach for all leases, except for short-term leases and
leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets.
Right-of-use assets
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying
asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and
impairment losses and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the
amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the
commencement date less any lease incentives received. Right of use assets are depreciated on a straight-line basis
over the shorter of the lease term and the estimated useful lives of the assets.
If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise
of a purchase option, depreciation is calculated using the estimated useful life of the asset.
The right-of-use assets are also subject to impairment. Refer to the accounting policies in section (k) Impairment of
non-financial assets.
Lease Liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease payments include fixed payments (including in substance
fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and
amounts expected to be paid under residual value guarantees.
In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease
commencement date because the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for
the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification,
a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change
in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase
the underlying asset.
Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its short-term leases of machinery and
equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not
contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of offices,
godowns, equipment, etc. that are of low value. Lease payments on short-term leases and leases of low-value assets
are recognised as expense on a straight-line basis over the lease term.
Company as a lessor
Lessor accounting under Ind AS 116 is substantially unchanged from Ind AS 17. Lessors will continue to classify leases
as either operating or finance leases using similar principles as in Ind AS 17. Therefore, Ind AS 116 does not have an
impact for leases where the Company is the lessor.
Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an
asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease
terms. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of
the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are
recognised as revenue in the period in which they are earned.
XV) Impa i rment of non-fi na ncia I assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset's
recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's (CGU) fair
value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the
asset does not generate cash inflows that are largely independent of those from other assets or group of assets. When
the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is
written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
The Company bases its impairment calculation on forecast calculations, which are prepared separately for each of the
Company's CGUs to which the individual assets are allocated.
Impairment losses of continuing operations, including impairment on inventories, are recognised in the statement of
profit and loss.
An assessment is made at each reporting date to determine whether there is an indication that previously recognised
impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset's or
CGU's recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the
assumptions used to determine the asset's recoverable amount since the last impairment loss was recognised. The
reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the
carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for
the asset in prior years. Such reversal is recognised in the statement of profit or loss.
XVI) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision¬
maker, Revenue and expenses are identified to segments on the basis of their relationship to the operating activities of the
segment. Revenue, expenses, assets and liabilities which are not allocable to segments on a reasonable basis, are included under
"Unallocated revenue/ expenses/ assets/ liabilities".
The analysis of geographical segments is based on the areas in which customers of the Company are located.
Segment accounting policies are in line with the accounting policies of the Company. In addition, the following specific
accounting policies have been followed for segment reporting:
i) Segment revenue includes sales and other operational revenue directly identifiable with/allocable to the segment including
inter segment revenue.
ii) Expenses that are directly identifiable with/allocable to segments are considered for determining the segment result.
iii) Most of the centrally incurred costs are allocated to segments mainly on the basis of their respective expected segment
revenue estimated at the beginning of the reported period.
iv) Income which relates to the Company as a whole and not allocable to segments is included in "unallocable corporate income/
(expen d itu re){net)''.
v) Segment result includes margins on inter-segment capital jobs, which are reduced in arriving at the profit before tax of the
Company.
vi) Segment result includes the finance costs incurred on interest bearing advances with corresponding credit included in
"unallocable corporate income/{expenditure)(net).
vii) Segment results have not been adjusted for the exceptional item attributable to the corresponding segment. The said
exceptional item has been included in "unallocable corporate income/(expenditure)(net)". The corresponding segment assets
have been carried under the respective segments without adjusting the exceptional item.
viii) Segment revenue resulting from transactions with other business segments is accounted on the basis of transfer price which
are either determined to yield a desired margin or agreed on a negotiated basis.
ix) Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable corporate assets
and liabilities represent the assets and liabilities that relate to the Company as a whole.
x) Segment non-cash expenses forming part of segment expenses includes the fair value of the employee stock options which is
accounted as employee compensation cost [Note l(rj supra] and is allocated to the segment.
XVII) Business combination
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the
aggregate of the consideration transferred measured at acquisition date fair value and the amount of any
noncontrolling interests in the acquiree. For each business combination, the Company elects whether to measure the
noncontroiling interests in the acquiree at fair value or at the proportionate share of the acquiree's identifiable net
assets. Acquisition-related costs are expensed as incurred. At the acquisition date, the identifiable assets acquired and
the liabilities assumed are recognised at their acquisition date fair values.
Any business combinations involving entities or businesses under common control are accounted for using the pooling
of interest method:
• The assets and liabilities of the combining entities are reflected at their carrying amounts.
• No adjustments are made to reflect fair values, or recognise any new assets or liabilities. The only adjustments that
are made are to harmonise accounting policies.
11Chart ererf \ n
Accounting Policy:
(a) Property, Plant and Equipment:
(i) Freehold Land is carried at historical cost including cost that is directly attributable to the acquisition of the land.
(ii) All other items of property, plant and equipment are stated at historical cost less accumulated depreciation/ amortization. Historical cost includes expenditure that is directly attributable to the
acquisition of the items.
Property, plant and equipment held for use in the production or/and supply of goods or services, or for administrative purposes, are stated in the balance sheet at cost, less any subsequent accumulated
depreciation and subsequent accumulated impairment losses.
The initial cost at cash price equivalence of property, plant and equipment acquired comprises its purchase price, including import duties and non-refundable purchase taxes, any directly attributable costs
of bringing the assets to its working condition and location and present value of any obligatory decommissioning costs for its intended use. Cost may also include effective portion on qualifying cash flow
hedges of foreign currency purchases of property, plant and equipment recycled from hedge reserve as basis adjustment.
In case of self-constructed assets, cost includes the costs of all materials used in construction, direct labour, allocation of overheads, directly attributable borrowing costs and effective portion of cash flow
hedges of foreign currency recycled from the hedge reserve as basis adjustment.
Subsequent expenditure on major maintenance or repairs includes the cost of the replacement of parts of assets and overhaul costs. Where an asset or part of an asset is replaced and it is probable that
future economic benefits associated with the item will be available to the Company, the expenditure is capitalised and the carrying amount of the item replaced is derecognised. Similarly overhaul costs
associated with major maintenance are capitalised and depreciated over their useful lives where it is probable that future economic benefits will be available and any remaining carrying amounts of the
cost of previous overhauls are derecognised. All other costs are expensed as incurred except the amortisation value of durgapur leasehold land is not material.
Depredation
Depreciation is charged so as to write off the cost or value of assets, over their estimated useful lives or, in the case of leased assets (including leasehold improvements), over the lease term if shorter. The
lease period is considered by excluding any lease renewals options, unless the renewals are reasonably certain. Depreciation is recorded using the straight line basis. The estimated useful lives and residual
values are reviewed at each year end, with the effect of any changes in estimate accounted for on a prospective basis. Each component of an item of property, plant and equipment with a cost that is
significant in relation to the total cost of that item is depreciated separately if its useful life differs from the others components of the asset.
Depreciation commences when the assets are ready for their intended use. Depreciated assets in property and accumulated depreciation accounts are retained fully until they are removed from service.
The useful life of the items of PPE estimated by the management for the current and comparative period are in line with the useful life as per Schedule II of the Companies Act, 2013.
De-recognition
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arisjAg^K?^
disposal or retirement of an item of property, plant and equipment is determined as the difference between net disposal proceeds and the carrying amount of the asset and is recognised in J
of profit and loss. '/-Mf ’'W J
' i(M ch* \\
“ ‘ ---:
Accounting Policy:
The income tax expense or credit for the period is the tax payable on current period's taxable income based on the applicable income tax rates for
the jurisdiction.
Current tax and deffered tax are recognised in the Statement of Profit and Loss except to the extent it relates to items recognised directly in equity
or other comprehensive income.
Current Income Tax
The current income tax is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the
countries where the Company operates and generates taxable income. Management evaluates periodically positions taken with respect to
situations in which applicable tax regulations is subject to interpretation, it establishes provisions, wherever appropriate, on the basis of amounts
expected to be paid to the tax authorities.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying
amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary differences, except, when the deferred tax liability arises from the initial recognition
of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses.
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except, when the deferred tax asset relating to the
deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at
the time of the transaction, affects neither the accounting profit nor taxable profit or loss.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each
reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be
recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in
equity).
Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities
and the deferred taxes relate to the same taxable entity and the same taxation authority.
The Company determines whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax
treatments and uses the approach that better predicts the resolution of the uncertainty. The Company applies significant judgement in identifying
uncertainties over income tax treatments.
Note: 6 INVENTORIES
Accounting Policy:
Inventories are stated at the lower of cost and net realizable value. The cost of finished goods and work in progress includes raw materials, direct
labour, other direct costs and related production overheads. Costs of inventories include the transfer from equity any gains/losses on.qualifying
cash flow hedges for purchases of raw materials.
Cost Is determined using the FIFO for Kolkata Unit. However, the same cost basis is applied to all inventories of a particular class. Inventories of
stares and spare parts are valued at weighted average cost basis after providing for cost of obsolescence and other anticipated losses, wherever
considered necessary.
However, materials and other supplies held for use in the production of inventories (finished goods, work-in-progress) are not written down below
the cost if the finished products in which they will be used are expected to sell at or below the cost.
Net realizable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the
sale.
Nature and Purpose of Reserve
a) Securities Premium
Premium received on issue of equity shares. This reserve can be utilised in accordance with the provisions of the Companies Act, 2013.
b) Revaluation Surplus
Revaluation Reserve arises on account of revaluation of Land.
c) General Reserve
This reserve is a part of Retained Earning, and is available for distribution to the shareholders as free reserve.
d) Special Capital Incentive
Special Capital Incentive Reserve arises on account of Business Combination.
e) Capital Reserve
Reserve created on account of amalgamation. This can be utilised in accordance with the provisions of the Companies Act, 2013.
f) Retained Earnings
Retained Earnings are profits that the company has earned till date, less any transfer to general reserve, dividends or other distributions paid to shareholders.
g) FVTOCI Reserve
The Company has elected to recognise changes in the fair value of investments in equity instruments along with remesurement of Defined Benefit plans through other comprehensive income This changes
are accumulated within the FVTOCI Reserve. e
h) Capital Redemption Reserve
Reserve has been created on account of redemption of preference shares.
i) RBI Reserve Fund
RBI Reserve Fund arises on account of Business Combination.
if
// 'pay
(A) BORROWINGS
Accounting Policy:
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost.
Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period
of the borrowing using the effective interest method. Fees paid on the establishment of loan facilities are recognised at transaction costs of
the loan to the extent it is probable that some or all of the facility will be drawn down. In the case, the fee is deferred until the draw down
occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a
repayment for liquidity services and amortised over the period of the facility to which it relates.
Borrowings are removed from the Balance Sheet when the obligation specified in the contract is discharged, cancelled or expired- The
difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the
consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in the statement of profit and loss as
other gains/(losses).
Borrowings are classified as current financial liabilities unless the Company has an unconditional right to defer settlement of the liability for
at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan arrangement on or before
the end of the reporting period with the effect that the liability becomes repayable on demand on the reporting date, the entitiy does not
classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statements for issue,
not to demand payment as a consequence of the breach.
Accounting Policy:
A provision is recognised if
(r) the business has present legal or constructive obligation as a result of 3 past event;
(ii) it is probable that an outflow of resources will be required to settle the obligation; and
(iii) the amount of obligation has been reliably estimated
Provisions are measured at the management's best estimate of the expenditure required to settle the obligation at the end of the reporting
period. If the effect of time value of money is material , provisions are discounted to reflect its current value using a current pre-tax
discount rate th3t reflects the current market assessments of the time value of money and the risks specific to the obligation. When
discounting is used, the increase in the provision due to passage of time is recognised as a finance cost.
Warranty provisions
Provisions for warranty-related costs are recognised on the basis of product sold or service provided to the customer. Initial recognition is
based on historical experience and management's decision based on technical advice. The initial estimate of warranty-related costs is
revised annually.
Onerous contracts
If the Company has a contract th3t is onerous, the present obligation under the contract is recognised and measured as a provision.
However, before a separate provision for an onerous contract is established, the Company recognises any impairment loss that has
occurred on assets dedicated to that contract.
An onerous contract is a contract under which the unavoidable costs (i.e., the costs that the Company cannot avoid because it has the
contract) of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable
costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any
compensation or penalties arising from failure to fulfil it.
Retirement and other Employee Benefits
Retirement benefit in the form of Provident Fund and Superannuation Schemes are defined contribution schemes. The Company has no
obligation, other than the contribution payable to the respective funds. The Company recognizes contribution payable to the provident
fund scheme as an expenditure, when 3n employee renders the related service.
Gratuity liability is funded defined benefit obligation and is provided for on the basis of actuarial valuation done on projected unit credit
method at the end of each reporting period.
Re-measurements, comprising of actuarial gains 3nd losses, the effect of the asset ceiling, excluding amounts included in net interest on the
net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability),
are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through other comprehensive
income in the period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent periods. Current and non¬
current cfassification is based on the actuarial valuation report.
The Company treats accumulated (eaves expected to be carried forward beyond twelve months, as long-term employee benefit for
measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit
credit method at the end of each financial year. The Company presents the leave as current liability in the balance sheet, to the extent it
does not have an unconditional right to defer its settlement beyond 12 months after the reporting date.
Where the Company has unconditional legal and contractual right to defer the settlement for the period beyond 12 months, the same is
presented as non-current liability- Actuarial galns/losses are immediately taken to the statement of profit and loss and are not deferred.
24.1 Contingent Liabilities
Accounting Policy:
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 the obligation or a reliable estimate of the amount cannot
be made.
a) Letters of Guarantee outstanding as at 31.03.2024 is ’ 19.77 Lacs (Previous Year - '37.12 lacs) against which Fixed Deposit of' 38.54 Lacs kept as margin.
b) Claim not acknowledged as debts: - Disputed demand for Sales Tax' 131.32 Lacs (Previous Year -' 131.32 Lacs) appealed against.
c) VAT Case filled for the year 2007-08 of Rs 62.70 Lacs (Previous Year -' 62.70 Lacs)
d) Contingent Liabilities in respect of Income Tax matter under appeal Rs. 284.28 Lacs (Previous Year -' 284.28 Lacs).
24.7 Earnings Per Share
Accounting Policy.
Earnings Per Share is calculated by dividing the net profit or loss of the period attributable to equity shareholders by the weighted average number of equity
shares oustanding during the period- Earnings considered in ascertaining the Company's Earnings Per Share is the net profit or loss for the period. The
weighted average number of equity shares oustanding during the period and all periods presented is adjusted for events, such as bonus shares, other than
the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources. For the
purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number
of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
24.10 Disclosures as required under Indian Accounting Standard 19 on "Employee Benefits"
A. Defined Benefit Plan
The Companv has unfunded scheme for payment of gratuity to all eligible employees calculated at specified number of days of last drawn salary
depending upon tenure of service for each year of completed service subject to minimum five years of service payable at the time of separation
upon superannuation or on exit otherwise.
The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the funded status
and amounts recognised in the balance sheet for the Post - retirement benefit plans.
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