Cost is determined on first in first out basis. Net realizable value is the estimated selling price in the ordinary course of business
reduced by the estimated costs to affect the sale. Stores and spares which do not meet the definition of property, plant and
equipment are accounted as inventories. The net realizable value of work-in-progress are determined with reference to the
selling prices of related finished goods.

The factors that we consider in determining the valuation of inventory includes shelf life and ageing of inventory. We consider
these factors and adjust valuation to reflect actual value of inventory. Raw materials and consumables held for use in the
production of finished goods are not written down below cost except in cases where material prices have declined, and it is
estimated that the cost of the finished goods will exceed their net realizable value.

Impairment of non-financial assets

We assess 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, we would estimate the asset’s recoverable amount. An asset’s recoverable
amount is the higher of an asset’s net selling price and its value in use. The 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 groups of assets.
Where the carrying amount of an asset 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. In
determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be
identified, an appropriate valuation model is used.

Impairment losses, including impairment on inventories, are recognized in the consolidated statement of profit and loss. After
impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses
may no longer exist or may have decreased. If such indication exists, we would estimate the asset’s or cash-generating unit’s
recoverable amount. A previously recognized 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 recognized. 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 recognized for the asset in prior years. Such reversal is recognized
in the consolidated statement of profit and loss unless the asset is carried at a revalued amount, in which case the reversal is
treated as a revaluation increase.

Employee Benefits
Defined contribution plans

Retirement benefit in the form of provident fund is a defined contribution scheme. We have no obligation, other than the
contribution payable to the provident fund. We recognize the contribution payable to the provident fund scheme as an expense,
when an employee renders the related service. If the contribution payable to the scheme for service received before the balance
sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting
the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the
balance sheet date, then excess is recognized as an asset.

Defined benefit plans

We operate a defined benefit plan for our employees. The costs of providing benefits under the plan are determined on the basis
of actuarial valuation at each year-end using the projected unit credit method consistent with the advice of qualified actuaries.
Remeasurements, comprising of actuarial gains and 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 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. Remeasurements are not reclassified
to profit or loss in subsequent periods.

Past service costs are recognized in profit or loss on the earlier of (i) the date of the plan amendment or curtailment, and (ii) the
date that we recognize related restructuring costs.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. We recognize the following
changes in the net defined benefit obligation as an expense in the consolidated statement of profit and loss: (i) service costs
comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements; and (ii) net
interest expense or income.

Other Short term employee benefits
Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit. We
measure the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement

that has accumulated at the reporting date.

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