Impairment
Financial assets (other than fair value)

The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is
impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Company
recognizes lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a
financing transaction.

The Company applies simplified approach of expected credit loss model for recognising Impairment loss on lease
receivables, trade receivables, other contractual rights to receive cash or other financial asset. Expected credit
losses are the weighted average of credit losses with the respective risks of default occurring as the weights.
Expected credit loss is the difference between all contractual cash flows that are due to the Company in accordance
with the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted
at the original effective interest rate. For all other financial assets, expected credit losses are measured at an amount
equal to the 12 month expected credit losses or at an amount equal to the life time expected credit losses if the
credit risk on the financial asset has increased significantly since initial recognition.

Non-financial assets

Property, plant and equipment and intangible assets with finite life are evaluated for recoverability whenever there
is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable
amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset
basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such
cases, the recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs.

If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying
amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized in the
statement of profit and loss.

Inventories

Items of inventory are valued at lower of cost and net realizable value. Cost includes cost of purchase, cost of
conversion, and other costs incurred in bringing the inventories to their present location and condition and is net
of taxes where applicable. Cost of raw materials, stores and spares, packing material and traded goods is
determined on weighted average basis. In case of work-in-process and finished goods, cost includes the actual
cost of conversion.

Provisions and Contingent Liabilities

A provision is recognised when the Company has a present obligation (legal or constructive) as a result of past
events and it is probable that an outflow of resources will be required to settle the obligation in respect of which
a reliable estimate can be made.

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

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

Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by future events not
wholly within the control of the Company or (ii) Present obligations arising from past events where it is not
probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount
of the obligation cannot be made. The Company does not recognize a contingent liability but discloses its existence
in the Restated Financial Information. Contingent assets are only disclosed when it is probable that the economic
benefits will flow to the entity.

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