ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Viyash Scientific Ltd.

Mar 31, 2026

2. MATERIAL ACCOUNTING POLICIES

(i) Statement of compliance

The Standalone financial statements have
been prepared in accordance with Indian
Accounting Standards ("Ind AS") notified
under the Companies (Indian Accounting
Standards) Rules, 2015 and as amended from
time to time and presentation requirements
of Division II of Schedule III to the Companies
Act, 2013.

(ii) Basis of preparation and presentation

The Standalone financial statements have
been prepared on a historical cost basis
except for the following :

â¢ Certain financial instruments that are
measured at fair values at the end of
each reporting period

â¢ Assets held for sale - measured at fair
value less cost to sell

â¢ Defined benefit plans - plan assets
measured at fair value

â¢ Share based payments

Fair value for measurement and / or
disclosure purposes in these Standalone
financial statements is determined on such
a basis, except for:

â¢ Share-based payments transaction as
defined in Ind AS 102 - Share-based
payments.

â¢ Leasing transaction as defined in Ind AS
116 - Leases.

â¢ Measurement that has some similarities
to fair value but are not fair value, such
as ''Net Realisable Value'' as defined in
Ind AS 2 - Inventories and value in use
as defined in Ind AS 36- Impairment of
assets.

The Standalone financial statements have
been prepared on an accrual and going
concern basis.

The accounting policies are applied
consistently to all the periods presented
in the Standalone financial statements. All
assets and liabilities have been classified as
current or non-current as per the Company''s
normal operating cycle. Based on the nature
of products and the time between acquisition
of assets for processing and their realization
in cash and cash equivalents, the Company
has ascertained its operating cycle as 12
months for the purpose of current or nonÂ¬
current classification of assets and liabilities.

(iii) Functional and presentation currency

These Standalone financial statements
are presented in Indian Rupees (INR). All
financial information presented in INR has
been rounded to the nearest million (up to
two decimals), except otherwise stated.

(iv) New and amended standards adopted by
the Company

The Ministry of Corporate Affairs vide
notification dated 7 May 2025 and 13
August 2025 notified the Companies (Indian
Accounting Standards) Amendment Rules,
2025 and Companies (Indian Accounting
Standards) Second Amendment Rules,
2025, respectively, which amended certain
accounting standards (see below), and
are effective for annual reporting periods
beginning on or after 1 April 2025:

(a) Classification of Liabilities as Current or
Non-current and Non-current Liabilities
with Covenants - Amendments to Ind
AS 1

As a result of the adoption of the
amendments to Ind AS 1, the Company
changed its accounting policy for the
classification of borrowings:

Borrowings are classified as current
liabilities unless, at the end of the
reporting period, the Company has a
right to defer settlement of the liability
for at least 12 months after the reporting
period.

Covenants that the Company is required
to comply with, on or before the end of
the reporting period, are considered
in classifying loan arrangements with
covenants as current or non-current.
Covenants that the Company is required
to comply with after the reporting period
do not affect the classification.

This new policy did not result in a change
in the classification of Viyash Scientific
Limited''s borrowings. The Company did
not make retrospective adjustments as
a result of adopting the amendments to
Ind AS 1.

(b) Supplier Finance Arrangements -
Amendments to Ind AS 7 and Ind AS 107

As a result of the adoption of the
amendments to Ind AS 7 and Ind AS 107,
the Company provided new disclosures
for liabilities under supplier finance
arrangements in note 29.

Company is not within the scope of the
OECD Pillar Two Model Rules, as Pillar
Two legislation has not yet been enacted
in any of the jurisdictions in which the
Company operates.

(d) Lack of Exchangeability - Amendments
to Ind AS 21

The amended Ind AS 21 have added
requirements to help entities to determine
whether a currency is exchangeable into
another currency, and the spot exchange
rate to use where it is not. These
amendments did not have any material
impact on the amounts recognised in
prior periods and are not expected to
significantly affect the current or future
periods

(v) New standards or amendments not yet
adopted

Classification of Liabilities as Current or
Non-current and Non-current Liabilities with
Covenants - Amendments to Ind AS 1 -

This amendment also includes specific
provisions that will take effect for reporting
periods beginning on or after 1 April 2026, as
outlined below.

Under the existing Ind AS 1, 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 payable on demand on the
reporting date, the entity 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.

However, the amended requirements stipulate
that entities will no longer be permitted to
consider lender waivers that are granted after
the reporting date but before the financial
statements are approved for the purpose
of classification of loans. This amendment
is required to be applied retrospectively in
accordance with Ind AS 8.

Viyash Scientific Limited does not expect
this amendment to have an impact on its
operations or financial statements.

(vi) Business combination

Business combinations have been accounted
for using the acquisition method under
the provisions of Ind AS 103 - Business
Combinations.

The cost of an acquisition is measured at the
fair value of the assets transferred, equity
instruments issued, and liabilities incurred or
assumed at the date of acquisition, which is
the date on which control is transferred to
the Company. The cost of acquisition also
includes the fair value of any contingent
consideration. Identifiable assets acquired
and liabilities and contingent liabilities
assumed in a business combination are
measured initially at their fair value on the
date of acquisition.

Business combinations between entities
under common control are accounted for
at carrying value and accounted using
"Pooling of Interest Method". The financial
information in the financial statements in
the respect of prior periods is restated as
if the business combination had occurred
from the beginning of the preceding period
in the financial statements, irrespective of
the actual date of the combination, however,
where the business combination has occurred

after that date, the prior period information
is restated only from that date. The balance
of the retained earnings appearing in the
financial statements of the transferor is
aggregated with the corresponding balance
appearing in the financial statements of the
transferee. The identity of the reserves are
preserved and the reserves of the transferor
becomes the reserves of transferee.

Transaction costs that the Company incurred
in connection with a business combination
are expensed as incurred.

When the consideration transferred by the
Company in a business combination includes
assets or liabilities resulting from a contingent
consideration arrangement, the contingent
consideration is measured at its acquisition
date fair value and included as part of the
consideration transferred in a business
combination. Changes in the fair value of
the contingent consideration that qualify
as measurement period adjustments are
adjusted retrospectively, with corresponding
adjustments against goodwill or capital
reserve, as the case maybe. Measurement
period adjustments are adjustments that
arise from additional information obtained
during the ''measurement period'' (which
cannot exceed one year from the acquisition
date) about facts and circumstances that
existed at the acquisition date.

If the initial accounting for a business
combination is incomplete by the end
of each reporting period in which the
combination occurs, the Company reports
provisional amounts for the items for
which the accounting is incomplete. Those
provisional amounts are adjusted during
the measurement period, or additional
assets or liabilities are recognised, to reflect
new information obtained about facts and
circumstances that existed at the acquisition
date that, if known, would have affected the
amounts recognised at that date.

The Company applies the anticipated
acquisition method where it has the right
and the obligation to purchase any remaining
non-controlling interest (so-called put /
call arrangements). Under the anticipated
acquisition method, the interests of the nonÂ¬
controlling shareholder are derecognised
when the Company''s liability relating to
the purchase of its shares is recognised.
The recognition of financial liability implies
that the interests subject to the purchase
are deemed to have been acquired already.

Therefore, the corresponding interests
are presented as already owned by the
Company even though legally they are still
non-controlling interests.

Goodwill

Goodwill arises on acquisitions of business. It
is measured as the excess of the sum of the
consideration transferred and the amount of
any non-controlling interest in the acquiree,
over the net of the acquisition date amounts
of the identifiable assets acquired and the
liabilities assumed. If the excess is a negative,
a bargain purchase gain is recognised in
capital reserve.

Goodwill arising on an acquisition of a
business is carried at a cost as established
at the date of acquisition of the business less
accumulated impairment losses, if any.

(vii) Non-current assets held for sale

Non-current assets are classified as held for
sale if their carrying amount will be recovered
principally through a sale transaction rather
than through continuing use. This condition
is regarded as met only when the asset is
available for immediate sale in its present
condition subject only to terms that are
usual and customary for sales of such asset
and its sale is highly probable. Management
must be committed to the sale, which should
be expected to qualify for recognition as a
completed sale within one year from the date
of classification.

Non-current assets classified as held for sale
are measured at the lower of their carrying
amount and fair value less costs to sell.

Costs to sell are the incremental costs
directly attributable to the disposal of an
asset (disposal Company), excluding finance
costs and income tax expense.

Non-current assets (including those that
a re part of a d isposa l Company) are not
depreciated or amortised while they are
classified as held for sale. Interest and other
expenses attributable to the liabilities of a
disposal Company classified as held for sale
continue to be recognised.

Non-current assets are reclassified from
held-for-sale to held-for-use if they no longer
meet the criteria to be classified as held-for-
sale. On reclassification as held-for-use, a
non-current asset is remeasured at the lower
of its recoverable amount and the carrying
amount that would have been recognised

had the asset never been classified as held-
for-sale or held-for-distribution.

(viii) Revenue recognition

The Company presents revenue net of indirect
taxes in its Standalone statement of profit
and loss.

Revenue from Contracts:

Revenue from contracts with customers is
recognized to the extent that it is probable
that the economic benefits will flow to the
Company and the revenue can be reliably
measured, regardless of when the payment
is being made. When a performance
obligation is satisfied, the revenue is
measured at the transaction price which is
consideration received or receivable, net of
returns and allowances, trade discounts and
volume rebates after taking into account
contractually defined terms of payment and
excluding taxes or duties collected on behalf
of the government.

Sale of goods

Revenue from sale of products is presented
in the income statement within revenue
from operations. The Company presents
revenue net of indirect taxes in its Standalone
statement of profit and loss. Sale of products
comprise revenue from sales of products, net
of sales returns, expiry, rebates, incentives
and of customer discounts.

Revenue is recognised when it is probable
that future economic benefits will flow to the
Company and these benefits can be measured
reliably. Further, revenue recognition requires
that all significant risks and rewards of
ownership of the goods included in the
transaction have been transferred to the
buyer, and that Company retains neither
continuing managerial involvement to the
degree usually associated with ownership
nor effective control over the goods sold.

Performance obligations are satisfied at one
point in time, typically on delivery. Revenue
is recognised when the Company transfers
control over the product to the customers;
control of a product refers to the ability to
direct the use of, and obtain substantially all
of the remaining benefits from, that asset.
The majority of the revenue earned by the
Company is derived from the satisfaction
of a single performance obligation for each
contract which is the sale of products.

Sales are measured at the fair value of
consideration received or receivable. The
amounts of rebates / incentives are estimated
and accrued on each of the underlying
sales transactions recognised. Returns and
customer discounts are recognised in the
period in which the underlying sales are
recognised based on an estimate basis. The
amount of sales returns is calculated on the
basis of management''s best estimate of the
amount of product that will ultimately be
returned by customers.

Where the Company pays consideration
to the customer (or to other parties that
purchase the Companys goods or services
from the customer), the Company accounts
for the consideration payable to a customer
as a reduction of the transaction price and,
therefore, of revenue unless the payment to
the customer is in exchange for a distinct
good or service that the customer transfers
to the Company.

Sale of Services

Income from technical service, support
services, management fees and other
services is recognised when the services are
completed as per the terms of the agreement
and when no significant uncertainty as to its
determination or realisation exists.

Income from analytical service is recognised
when the services are completed as per
the terms of the agreement and when no
significant uncertainty as to its determination
or realisation exists. Revenue is recognised
net of taxes and discounts."

Revenue related to contract research, is
recognized in the statement of profit and loss
as the underlying services are performed.
Upfront non-refundable payments received
under these arrangements are deferred and
recognized as revenue over the expected
period over which the related services are
expected to be performed.

Profit share revenue

The Company occasionally enters into
marketing arrangements with certain
business partners to facilitate to sale of
its products in certain markets. Under
such arrangements, the Company sells its
products to the business partners at a nonÂ¬
refundable base purchase price agreed upon
in the arrangement and is also entitled to a

profit share which is over and above the base
purchase price.

The profit share is typically dependent on the
business partner''s ultimate net sale proceeds
or net profits, subject to any reductions or
adjustments that are required by the terms
of the arrangement. Such arrangements
typically require the business partner to
provide confirmation of units sold and net
sales or net profit computations for the
products covered under the arrangement.

Revenue in an amount equal to the base sale
price is recognised in these transactions
upon transfer of control to the customer. An
additional amount representing the profit
share component is recognised as revenue
only to the extent that it is highly probable
that a significant reversal will not occur.
At the end of each reporting period, the
Company updates the estimated transaction
price (including updating its assessment
of whether an estimate of variable
consideration is constrained) to represent
faithfully the circumstances present at the
end of the reporting period and the changes
in circumstances during the reporting period.

Export entitlements

Export entitlements from Government
authorities are recognised in the Standalone
statement of profit and loss when the right to
receive credit as per the terms of the scheme
is established in respect of the exports made
by the Company, and where there is no
significant uncertainty regarding the ultimate
collection of the relevant export proceeds.

Interest and dividend income

I nterest income from a financial asset is
recognised when it is probable that the
economic benefits will flow to the Company
and the amount of income can be measured
reliably. Interest income is accrued on a
time basis, by reference to the principal
outstanding and at the effective interest
rate applicable. Effective interest rate is the
rate that exactly discounts the estimated
future cash receipts over the expected
life of the financial instrument or a shorter
period, where appropriate, to the gross
carrying amount of the financial asset. While
calculating the effective interest rate, the
Company estimates the expected cash flows
by considering all the contractual terms
of the financial instrument (for example,
prepayment, extension, call and similar

options) but does not consider the expected
credit losses.

Dividend income from investments is
recognised when the right to receive payment
has been established.

Government Grants:

Government grants are recognised in
accordance with the terms of the respective
grant on an accrual basis considering
the status of compliance of prescribed
conditions and ascertainment that the grant
will be received.

Government grants related to revenue are
recognised on a systematic and gross basis
in the Statement of Profit and Loss over
the period during which the related costs
intended to be Compensated are incurred.
Government grants related to assets are
recognised as income in equal amounts over
the expected useful life of the related asset.

Bill and Hold Transactions:

The Company recognises revenue for the sale
of a product on a bill-and-hold basis only
when all of the following criteria are met:

â¢ The reason for the bill-and-hold
arrangement must be substantive;

â¢ The product must be identified separately
as belonging to the customer;

â¢ The product is ready for physical transfer
to the customer; and

â¢ The Company cannot have the ability to
use the product or to direct it to another
customer.

Financing components

The Company does not have any contracts
where the period between the transfer of the
promised goods or services to the customer
and payment by the customer exceeds one
year. As a consequence, the Company does
not adjust any of the transaction prices for a
significant financing component or the time
value of money.

Contract Liabilities:

Contract liabilities represent consideration
received (e.g., milestone or advances or
upfront payments) for activities performed
at or near contract inception that:

â¢ Do not transfer a promised good or
service to the customer, and,

â¢ Are in the nature of pre-production
activities required to fulfil the contract.

Such activities are not considered separate
performance obligations, as they only
enable the entity to deliver future goods or
services. Milestone or advances or upfront
payments received are deferred and
recognized as contract liabilities until the
related performance obligation (i.e., supply
of goods) is satisfied.

Recognition in revenue:

Contract liabilities (milestones or advances
or upfront payments) are recognised as
revenue over the period of supply of goods,
and on a systematic basis consistent with the
pattern of transfer of goods to the customer.
The amortisation of contract liabilities is
recognised as part of revenue from operations
in the statement of profit and loss. Contract
liabilities are recognised as revenue when
(or as) the related performance obligation
is satisfied, i.e., upon transfer of control of
goods to the customer (typically at a point
in time upon delivery). The amortisation
(release) of contract liabilities is presented
as part of revenue from operations in the
statement of profit and loss.

(ix) Leases

The Company''s lease asset classes primarily
consist of leases for land, building, vehicles
and others. 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. To assess
whether a contract conveys the right to
control the use of an identified asset, the
Company assesses whether: (i) the contract
involves the use of an identified asset (ii)
the Company has substantially all of the
economic benefits from use of the asset
through the period of the lease and (iii) the
Company has the right to direct the use of
the asset.

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.

a) Right-of-use assets (ROU)

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 straightÂ¬
line basis over the of the lease term. 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 on Impairment of non-financial
assets.

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, as follow

b) Lease liabilities

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.

Lease liability and ROU asset have been
separately presented in the Balance
Sheet and lease payments have been
classified as financing cash flows.

Lease payments are allocated between
principal and finance cost. The finance
cost is charged to profit or loss over the
lease period so as to produce a constant
periodic rate of interest on the remaining
balance of the liability for each period.

c) Short-term leases and leases of low-
value assets:

The Company applies the short-term
lease recognition exemption to its shortÂ¬
term leases (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 that are considered
to be 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.

(x) Foreign currency transactions and
translation

Transactions in currencies other than
the entity''s functional currency (foreign
currencies) are recognised at the rates
of exchange prevailing at the dates of the
transactions.

At the end of each reporting period, monetary
items denominated in foreign currencies
are retranslated at the rates prevailing at

that date. Exchange differences arising on
settlement or translation of monetary items
are recognised in the Standalone statement
of profit and loss in the year in which it arises
except for:

â¢ exchange differences on foreign
currency borrowings relating to assets
under construction for future productive
use, which are included in the cost of
those assets when they are regarded as
an adjustment to interest costs on those
foreign currency borrowings.

â¢ exchange differences on transactions
entered into in order to hedge certain
foreign currency risks; and

â¢ exchange differences on monetary items
receivable from or payable to a foreign
operation for which settlement is neither
planned nor likely to occur (therefore
forming part of the net investment in the
foreign operation), which are recognised
initially in other comprehensive income
and reclassified from equity to the
Standalone statement of profit and loss
on disposal of net investment.

For financial liabilities that are denominated
in a foreign currency and are measured at
amortised cost at the end of each reporting
period, the foreign exchange gains and losses
are determined based on the amortised cost
of the instruments and are recognised in the
statement of profit and loss.

Foreign currency transaction gains and losses
related to inter-company loans or advances
that have been asserted by Management to
be of a long-term nature are accounted for
as translation adjustments and resulting net
exchange difference are recognized in other
comprehensive income.

Contingent Liabilities are translated at the
closing rate.

Monetary assets and liabilities denominated
in foreign currencies as at the Balance Sheet
date, not covered by forward exchange
contracts, are translated into Indian Rupees
at the closing exchange rate. The resultant
exchange differences are recognized in the
statement of profit and loss. Non-monetary
assets are recorded at the rates prevailing on
the date of the transaction.

The premium or discount on a forward
exchange contract taken to hedge foreign
currency risk of an existing asset/liability is

recognized in the statement of profit and loss
over the period of the contract. The forward
exchange contracts taken to hedge existing
assets or liabilities are translated at the
closing rate and exchange differences are
recognized in the same manner as those on
the foreign currency asset or liability.

(xi) Borrowing costs

Borrowing costs directly attributable to
the acquisition, construction or erection of
qualifying assets are added to the cost of
those assets, until such time that the assets
are substantially ready for their intended
use. Qualifying assets are assets which take
a substantial period of time to get ready for
their intended use or sale.

Borrowing costs consist of interest and other
costs that an entity incurs in connection with
the borrowing of funds.

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 borrowings using
the effective interest method. Fees paid
on the establishment of loan facilities are
recognised as transaction costs of the loan
to the extent that it is probable that some or
all of the facility will be drawn down. In this
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 prepayment for liquidity services and
amortised over the period of the facility to
which it relates.

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

All other borrowing costs are recognised in
the Standalone statement of profit and loss
in the period in which they are incurred.

(xii) Employee benefits

a) Defined contribution plans :

The Company has defined contribution
plans for post-employment benefits in
the form of provident fund and similar
plans. Provident fund is classified
as defined contribution plans as the

Company has no further obligation
beyond making the contributions. The
Company''s contributions to defined
contribution plans are charged to the
Standalone statement of profit and loss
as and when employee renders related
service.

b) Defined benefit plans:

Payments to defined benefit plans
are recognised as an expense when
employees have rendered service
entitling them to the contributions.

A defined benefit plan is a postÂ¬
employment benefit plan other than
a defined contribution plan. The
Company''s gratuity scheme and
termination benefits are in the nature of
defined benefit plans.

For defined benefit plans, the cost of
providing benefit is determined using
the projected unit credit method, with
actuarial valuation being carried out
at the end of each financial year. ReÂ¬
measurement, comprising actuarial gains
and losses, the effect of the changes
to the asset ceiling (if applicable) and
the return on plan assets (excluding net
interest), is reflected immediately in the
balance sheet with a charge or credit
recognised in other comprehensive
income in the period in which they
occur. Re-measurement recognised in
other comprehensive income is reflected
immediately in retained earnings and
is not reclassified to the Standalone
statement of profit and loss. Past service
cost is recognised in the Standalone
statement of profit and loss in the period
of a plan amendment. Net interest is
calculated by applying the discount
rate at the beginning of the period to
the net defined benefit liability or asset.
The discount rates used for determining
the present value of the obligation under
defined benefit plans are based on the
market yields on Government securities
as at the balance sheet date. Defined
benefit costs are categorised as follows:

â¢ service cost (including current
service cost, past service cost,
as well as gains and losses on
curtailments and settlements);

â¢ net interest expense or income; and

â¢ re-measurement gain / (loss).

The Company presents the first two
components of defined benefit costs
in the Standalone statement of profit
and loss in the line item ''Employee
benefits expense''. The retirement benefit
obligation recognised in the balance
sheet represents the actual deficit
or surplus in the Company''s defined
benefit plans. Any surplus resulting from
this calculation is limited to the present
value of any economic benefits available
in the form of refunds from the plans or
reductions in future contributions to
the plans. A liability for a termination
benefit is recognised at the earlier of
when the entity can no longer withdraw
the offer of the termination benefit and
when the entity recognise any related
restructuring costs.

c) Short-term employee benefits

A liability is recognised for short-term
employee benefit in respect of wages
and salaries, annual leave, medical and
leave travel in the period the related
service is rendered at the undiscounted
amount of the benefits expected to be
paid in exchange for that service.

d) Other employee benefits

Other employee benefits comprise of
leave encashment, which is provided for,
based on the actuarial valuation carried
out as at the end of the year. Liabilities
recognised in respect of other employee
benefits are measured at the present
value of the estimated future cash
outflows expected to be made by the
Company in respect of services provided
by employees up to the reporting date.

(xiii) Share-based compensation

Equity-settled share-based payments to
employees and others providing similar
services are measured at the fair value of
the equity instruments at the grant date.
Details regarding the determination of
the fair value of equity-settled Share-
based transactions are set out in Note
49.

At the end of each reporting period, the
Company revises its estimate of the
number of equity instruments expected
to vest. The impact of the revision of the
original estimates, if any, is recognised in
the Standalone statement of profit and
loss such that the cumulative expense
reflects the revised estimate, with a
corresponding adjustment to the equity-
settled employee benefits reserve.

Where share options or warrants are
cancelled, any expenses previously
recognized in relation to such share
options and warrants are transferred to
general reserve, with a corresponding
adjustment to equity.

(xiv) Taxation

Income tax comprises current and
deferred tax. Income tax expense is
recognised in the Standalone statement
of profit and loss except to the extent
it relates to items directly recognised in
equity or in other comprehensive income.

a) Current tax

Current tax represents the tax
currently payable on taxable profit
for the year. Taxable profit differs
from ''profit before tax'' as reported
in the Standalone statement of
profit and loss because of items of
income or expense that are taxable
or deductible in other years and
items that are never taxable or
deductible. The Company''s current
tax is calculated using tax rates that
have been enacted or substantively
enacted by the end of each reporting
period.

Minimum alternative tax(''MAT'')
paid in accordance to the tax laws,
which gives rise to future economic
benefits in the form of adjustment of
future tax liability. MAT is recognised
as an asset in the balance sheet
when it is probable that the future
economic benefit associated with it
will flow to the Company and asset
can be measured reliably.

Current income tax assets and
liabilities are measured at the
amount expected to be recovered
from or paid to the taxation
authorities as per local Income Tax
Acts of respective countries. Current

tax assets and current tax liabilities
are offset when there is a legally
enforceable right to set off the
recognised amounts and there is an
intention to settle the asset and the
liability on a net basis.

The Company applies significant
judgement in identifying
uncertainties over income
tax treatments. Management
periodically evaluates positions
taken in the tax returns with respect
to situations in which applicable
tax regulations are subject to
interpretation and establishes
provisions where appropriate. Tax
benefits are not recognised unless
the tax positions will probably be
accepted by the tax authorities.
This is based upon management''s
interpretation of applicable laws
and regulations and the expectation
of how the tax authority will resolve
the matter. Once considered
probable of not being accepted,
management reviews each material
tax benefit and reflects the effect of
the uncertainty in determining the
related taxable amounts.

b) Deferred tax

The carrying amount of deferred tax
assets is reviewed at the end of each
reporting period 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.

Deferred tax assets and liabilities
are measured at the tax rates that
are expected to apply in the period
in which 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 end of each reporting period.

The measurement of deferred tax
liabilities and assets reflects the
tax consequences that would
follow from the manner in which
the Company expects, at the end
of each reporting period, to recover
or settle the carrying amount of its
assets and liabilities.

Deferred tax assets and deferred tax
liabilities are offset when there is a
legally enforceable right to set off
current tax assets against current
tax liabilities; and the deferred tax
assets and the deferred tax liabilities
relate to income taxes levied by the
same taxation authority.

Deferred tax relating to items
recognised outside the Standalone
statement of profit and loss
is recognised either in other
comprehensive income or in equity.

jxv) Property, plant and equipment

Recognition and measurement

Property, Plant and equipment are carried
at cost less accumulated depreciation/
amortization and impairment losses, if any.
The cost of tangible assets comprises its
purchase price net of any trade discounts
and rebates, foreign exchange fluctuations,
any import duties and other taxes (other than
those subsequently recoverable from the
tax authorities). Freehold land is carried at
historical cost.

Cost includes expenditure that is directly
attributable to bringing the asset to the
location and condition necessary for its
intended use. The cost of self-constructed
assets includes the cost of materials and
other costs directly attributable to bringing
the asset to a working condition for its
intended use including present value of
decommissioning liability.

When parts of an item of property, plant and
equipment have significant cost in relation to
total cost and different useful lives, they are
recognised and depreciated separately.

Depreciation is recognised so as to write off
the cost of assets (other than freehold land)
less their residual values, using the straightÂ¬
line method, over the useful lives specified
in Schedule II to the Companies Act, 2013
except for the following items, where useful
life estimated on technical assessment, past
trends and differ from those provided in
Schedule II of the Companies Act, 2013.

The estimated useful lives, residual values
and depreciation method are reviewed at the
end of each reporting period, with the effect
of any changes in estimates are accounted
for on a prospective basis.

Depreciation on additions / deletions to
property, plant and equipment is provided
pro rata from the month of addition / till the
month of deletion.

The assets residual values and useful lives are
reviewed, and adjusted if appropriate at the
end of each reporting period.

Property, plant and equipment acquired
in a business combination are recognized
at fair value at the acquisition date. They
are depreciated over their useful life and
are subsequently carried at cost less
accumulated amortization and impairment
losses.

Subsequent costs

The cost of replacing part of an item of
property, plant and equipment is recognised
in the carrying amount of the item if it is
probable that the future economic benefits
embodied within the part will flow to the
Company and its cost can be measured
reliably. The costs of repairs and maintenance
are recognised in the Standalone statement
of profit and loss as incurred.

Derecognition of property, plant &
equipment

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 arising on the disposal or
retirement of an item of property, plant and
equipment is determined as the difference
between the sales proceeds and the carrying
amount of the asset and is recognised in the
Standalone statement of profit and loss.

Assets classified as held for sale
The Company classifies assets as held for sale
if their carrying amounts will be recovered
principally through a sale rather than through
continuing use of assets and actions required
to complete such sale indicate that it is
unlikely that significant changes to the plan
to sell will be made or that decision to sell will
be withdrawn. Also, such assets are classified
as held for sale only if management expects
to complete the sale within one year from the
date of classification.

Assets classified as held for sale are measured
at the lower of their carrying amount and the
fair value less cost to sell. Non-current assets
are not depreciated or amortised.

xvi) Intangible assets

a) Intangible assets acquired separately

Intangible assets that are acquired
by the Company, which have finite
useful lives, are measured at cost
less accumulated amortisation and
accumulated impairment losses. The
estimated useful life and amortisation
method are reviewed at the end of each
reporting period, with the effect of any
changes in estimate being accounted for
on a prospective basis. Cost includes any
directly attributable incidental expenses
necessary to make the assets ready for
use.

b) Internally generated intangible asset

Expenditure on research activities is
recognised as an expense in the year in
which it is incurred.

An internally generated intangible asset
arising from development is recognised
if, and only if, all of the following have
been demonstrated:

â¢ the technical feasibility of

completing the intangible asset so
that it will be available for use or
sale;

â¢ the intention to complete the

intangible asset and use or sell it;

â¢ the ability to use or sell the intangible
asset;

â¢ how the intangible asset will

generate probable future economic
benefits;

â¢ the availability of adequate

technical, financial and other
resources to complete the
development and to use or sell the
Intangible asset; and

â¢ the ability to measure reliably
the expenditure attributable to
the intangible asset during its
development.

The amount initially recognised for
internally generated intangible assets
is the sum of the expenditure incurred
from the date when the intangible asset
first meets the recognition criteria listed
above. Where no internally generated
intangible asset can be recognised,
development expenditure is recognised
in the Standalone statement of profit and
loss in the period in which it is incurred.

Subsequent to initial recognition,
internally generated intangible assets
are reported at cost less accumulated
amortisation and accumulated
impairment losses, on the same basis
as intangible assets that are acquired
separately.

c) Subsequent costs

Subsequent costs are capitalised only
when it increases the future economic
benefits embodied in the specific asset
to which it relates. All other expenditures,
including expenditure on internally
generated intangibles, are recognised in
the Standalone statement of profit and
loss as incurred.

d) Intangible assets acquired in a business
combination

Intangible assets acquired in a business
combination which are recognised
separately from goodwill are initially
recognised at their fair value at the

acquisition date (which is regarded as
their cost).

Subsequent to initial recognition,
intangible assets acquired in a business
combination are reported at cost
less accumulated amortisation and
accumulated impairment losses, on the
same basis as intangible assets that are
acquired separately.

e) Derecognition of intangible assets

An intangible asset is derecognised on
disposal, or when no future economic
benefits are expected from use or
disposal. Gains or losses arising from
derecognition of an intangible asset,
measured as the difference between the
net disposal proceeds and the carrying
amount of the asset, are recognised in
the Standalone statement of profit and
loss when the asset is derecognised.

f) Goodwill

Goodwill arises on acquisition of
subsidiaries or businesses. It is not
amortised but is tested for impairment
annually, or more frequently if events
or changes in circumstances indicate
that it might be impaired, and is carried
at cost less accumulated losses. Gains
and losses on the disposal of an entity
include the carrying amount of goodwill
relating to the entity sold.

Goodwill is allocated to cash-generating
units for the purpose of impairment
testing. The allocation is made to those
cash-generating units or Company of
cash-generating units that are expected
to benefit from the business combination
in which the goodwill arose. The unit or
Companies of units are identified at
the lowest level at which goodwill is
monitored for internal management
purpose.

Goodwill is not amortised but it is
tested for impairment annually, or
more frequently if events or changes in
circumstances indicate that it might be
impaired.

g) Research and Development

Research expenditure and development
expenditure that do no meet the criteria
of Ind AS 38, Intangible assets are
recognized as an expense as and when
incurred. Development costs previously
recognized as an expense are not
recognized as an asset in a subsequent
period.

Once the criteria''s of Ind AS 38, Intangible
assets are met by the Company, the
development costs are capitalized and
amortised from the point at which the
assets are available for sale.

(xvii) Inventories

I nventories are valued at the lower of
cost and net realisable value.

Costs includes cost of purchase and
other costs incurred in bringing the
inventories to their present location and
condition.

The methods of determining cost of
various categories of inventories are as
follows:

â¢ Raw material (including packing
material, fuel and consumables) -
Weighted average cost

â¢ Stores and Spares - Weighted
average cost

â¢ Finished goods - Weighted average
cost including cost of conversion

â¢ Goods-in-transit - Actual cost of
purchase

The following costs are included for
the following inventories. :

â¢ Raw materials, packing materials,
fuel and consumables: At actual
purchase cost including other
cost incurred in bringing materials
/ consumables to their present
location and condition.

â¢ Work-in-progress and Intermediates:
At material cost, conversion costs
and appropriate share of production
overheads based on normal
capacity.

â¢ Finished goods: At material cost,
conversion costs and an appropriate
share of production overheads
based on normal capacity.

â¢ Stock-in-trade: At purchase and
other costs incurred in bringing the
inventories to their present location
and condition.

However, materials and other items held
for use in production of inventory are not

written down below cost, if the finished
product in which they will be used are
expected to be sold at or above cost. Net
realisable value is the estimated selling
price in the ordinary course of business,
less estimated costs of completion and
the estimated costs necessary to make
the sale.

The comparison of cost and net realisable
value of inventory is made on an item-byÂ¬
item basis.

Mar 31, 2025

2 Material accounting policies

2.1 Statement of compliance

The standalone financial statements have been
prepared in accordance with Indian Accounting
Standards ("Ind AS") notified under the Companies
(Indian Accounting Standards) Rules, 2015 as
amended from time to time and presentation
requirements of Division II of Schedule III to the
Companies Act, 2013.

The standalone financial statements were
approved for issue in accordance with a resolution
of the director as on 20 May 2025.

2.2 Basis of preparation and presentation

The standalone financial statements have been
prepared on the historical cost basis except for
certain financial instruments that are measured
at fair values at the end of each reporting period.

Fair value is the price that would be received to
sell an asset or paid to transfer a liability in an
orderly transaction between market participants
at the measurement date, regardless of whether
that price is directly observable or estimated
using another valuation technique. Fair value for
measurement and / or disclosure purposes in these
standalone financial statements is determined on
such a basis, except for

â¢ Share-based payment transaction as defined
in Ind AS 102 - Share-based payment.

â¢ Leasing transaction as defined in Ind AS 116 -
Leases.

â¢ Measurement that have some similarities
to fair value but are not fair value, such as
''Net Realisable Value'' as defined in Ind AS 2 -
Inventories and value in use as defined in Ind
AS 36- Impairment of Assets.

The standalone financial statements have been
prepared on accrual and going concern basis. The

accounting policies are applied consistently to all
the periods presented in the financial statements.
All assets and liabilities have been classified as
current or non-current as per the Company''s
normal operating cycle. Based on the nature
of products and the time between acquisition
of assets for processing and their realisation in
cash and cash equivalents, the Company has
ascertained its operating cycle as 12 months for
the purpose of current or non-current classification
of assets and liabilities.

2.3 Functional and presentation currency

These standalone financial statements are
presented in Indian Rupees (''), which is the
Company''s functional currency. All financial
information presented in '' has been rounded to
the nearest million (up to two decimals), except
otherwise stated.

2.4 Summary of material accounting policies

i. Revenue from contract with customer

a) Sale of products

Revenue from sale of products is presented
in the income statement within revenue
from operations. The Company presents
revenue net of indirect taxes in its standalone
statement of profit and loss. Sale of products
comprise revenue from sales of products,
net of sales returns, rebates, incentives and
customer discounts.

Revenue from contract with customer is
recognized when the Company transfers
control over the product to the customer at
an amount that reflects the consideration
to which the Company expects to be
entitled in exchange for those goods or
services. Control of a product refers to
the ability to direct the use of and obtain
substantially all of the remaining benefits
from that asset. Performance obligations
are satisfied at one point in time, typically
on delivery. Most of the revenue earned by
the Company is derived from the satisfaction
of a single performance obligation for
each contract which is the sale of products

Sales are measured at the fair value of
consideration received or receivable. The
amounts of rebates / incentives is estimated
and accrued on each of the underlying
sales transactions recognised. Returns and
customer discounts are recognized in the
period in which the underlying sales are
recognized based on an estimate basis. The
amount of sales returns is calculated on the

basis of management''s best estimate of the
amount of product that will ultimately be
returned by customers.

Contract assets

A contract asset is the right to consideration
in exchange for goods or services transferred
to the customer. If the Company performs by
transferring goods or services to a customer
before the customer pays consideration or
before payment is due, a contract asset is
recognised for the said earned consideration.

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 received
from customer or due, whichever is earlier.
Contract liabilities are recognised as revenue
when the Company performs under the
contract.

b) Services

I ncome is recognised when the services are
completed as per the terms of the agreement
and when no significant uncertainty as to its
determination or realisation exists.

c) Export entitlements income

Export entitlements from Government
authorities are recognised in the standalone
statement of profit and loss when the right to
receive credit as per the terms of the scheme
is established in respect of the exports made
by the Company, and where there is no
significant uncertainty regarding the ultimate
collection of the relevant export proceeds.

d) Interest and dividend income

- Interest income from a financial asset is
recognised when it is probable that the
economic benefits will flow to the Company
and the amount of income can be measured
reliably. Interest income is accrued on a
time basis, by reference to the principal
outstanding and at the effective interest rate
applicable. Effective interest rate is the rate
that exactly discounts the estimated future
cash receipts over the expected life of the
financial instrument or a shorter period, where
appropriate, to the gross carrying amount

of the financial asset. While calculating the
effective interest rate, the Company estimates
the expected cash flows by considering all the
contractual terms of the financial instrument
(for example, prepayment, extension, call and
similar options) but does not consider the
expected credit losses.

- Dividend income from investments is
recognised when the Company''s right to
receive payment has been established.

ii. Current versus non-current classification

The Company presents assets and liabilities
in the balance sheet based on current / nonÂ¬
current classification.

An asset is treated as current when:

- It is expected to be realised or intended to be
sold or consumed in normal operating cycle,

- It is held primarily for the purpose of trading,

- It is expected to be realised within twelve
months after the reporting period, or

- Cash or cash equivalent unless restricted
from being exchanged or used to settle a
liability for at least twelve months after the
reporting period.

All other assets are classified as non-current.
A liability is current when:

- It is expected to be settled in normal
operating cycle

- It is held primarily for the purpose of trading,

- It is due to be settled within twelve months
after the reporting period, or

- There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting.

All other liabilities are classified as nonÂ¬
current.

Deferred tax assets and liabilities are
classified as non-current assets and liabilities.

The operating cycle is the time between the
acquisition of assets for processing and their
realisation in cash and cash equivalents. The
Company has identified twelve months as its
operating cycle.

The terms of the liability that could, at the
option of the counterparty, result in its
settlement by the issue of equity instruments
do not affect its classification.

iii. Foreign currency transactions and
translation

Transactions in currencies other than
the entity''s functional currency (foreign
currencies) are recognised at the rates of
exchange prevailing at the dates of the
transactions.

At the end of each reporting period, monetary
items denominated in foreign currencies are
translated at the rates prevailing at that date.
Exchange differences arising on settlement or
translation of monetary items are recognised
in the standalone statement of profit and loss
in the year in which it arises.

Non-monetary assets and liabilities
denominated in foreign currencies that are
measured at fair value are retranslated to the
functional currency at the exchange rate at
the date when the fair value was determined.
Non-monetary items that are measured in
terms of historical cost in a foreign currency
are translated using the exchange rate at the
date of the transaction.

iv. Borrowing costs

Borrowing costs directly attributable to
the acquisition, construction or erection
of qualifying assets are added to the cost
of those assets, until such time that the
assets are substantially ready for their
intended use. Qualifying assets are assets
which take a substantial period of time to
get ready for their intended use or sale.
Borrowing costs consist of interest and other
costs that an entity incurs in connection with
the borrowing of funds.

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

All other borrowing costs are recognised in
the standalone statement of profit and loss
in the period in which they are incurred.

v. Employee Benefits

a) Defined Contribution Plans

The Company has defined contribution plans
for post-employment benefits in the form of
provident fund which is administered through
Government of India. Provident fund is
classified as defined contribution plans as the
Company has no further obligation beyond
making the contributions. The Company''s
contributions to defined contribution plans
are charged to the standalone statement of
profit and loss as and when employee renders
related service.

b) Defined benefit plans

Payments to defined benefit plans are
recognised as an expense when employees
have rendered service entitling them to the
contributions.

A defined benefit plan is a post-employment
benefit plan other than a defined contribution
plan. The Company''s gratuity scheme is in the
nature of defined benefit plans.

For defined benefit plans, the cost of
providing benefit is determined using
projected unit credit method, with actuarial
valuation being carried out at the end of each
financial year. Re-measurement, comprising
actuarial gains and losses, the effect of the
changes to the asset ceiling (if applicable),
is reflected immediately in the balance sheet
with a charge or credit recognised in other
comprehensive income in the period in which
they occur. Re-measurement recognised in
other comprehensive income is reflected
immediately in retained earnings and is not
reclassified to the statement of profit and
loss. Past service cost is recognised in the
statement of profit and loss in the period of a
plan amendment. Net interest is calculated by
applying the discount rate at the beginning of
the period to the net defined benefit liability or
asset. The discount rates used for determining
the present value of the obligation under
defined benefit plans are based on the market
yields on Government securities as at the
balance sheet date. Defined benefit costs are
categorised as follows:

â¢ service cost (including current service
cost, past service cost, as well as
gains and losses on curtailments and
settlements);

â¢ net interest expense or income; and

â¢ re-measurement gain/ (loss).

The Company presents the service cost of
defined benefit plan in the line item ''Employee
benefits expense'' and the net interest expense
or income in the line item ''Finance costs'' of
the standalone statement of profit and loss.
The retirement benefit obligation recognised
in the balance sheet represents the actual
deficit or surplus in the Company''s defined
benefit plans. Any surplus resulting from this
calculation is limited to the present value of
any economic benefits available in the form of
refunds from the plans or reductions in future
contributions to the plan.

c) Short-term employee benefits

A liability is recognised for short-term
employee benefit in respect of wages and
salaries, annual leave, medical and leave
travel in the period the related service is
rendered at the undiscounted amount of the
benefits expected to be paid in exchange for
that service.

d) Other employee benefits

Other employee benefits comprise of leave
encashment which is provided for, based on
the actuarial valuation carried out as at the
end of the year. Liabilities recognised in respect
of other employee benefits are measured at
the present value of the estimated future
cash outflows expected to be made by the
Company in respect of services provided by
employees up to the reporting date.

vi. Share-based compensation

Equity-settled share-based payments to
employees and others providing similar
services are measured at the fair value of the
equity instruments at the grant date. Details
regarding the determination of the fair value
of equity-settled share-based transactions
are set out in note 46.

The fair value determined at the grant date
of the equity-settled share-based payments
is expensed on a systematic basis over the
vesting period, based on the Company''s
estimate of equity instruments that will
eventually vest, with a corresponding increase
in equity. At the end of each reporting
period, the Company revises its estimate of
the number of equity instruments expected
to vest. The impact of the revision of the
original estimates, if any, is recognised in
the standalone statement of profit and loss
such that the cumulative expense reflects
the revised estimate, with a corresponding
adjustment to the equity-settled employee
benefits reserve.

vii. Taxation

I ncome tax comprises current and deferred
tax. Income tax expense is recognised in
the standalone statement of profit and loss
except to the extent it relates to items directly
recognised in equity or in other comprehensive
income.

a) Current tax

Current tax represents the tax currently
payable on taxable profit for the year.

Taxable profit differs from ''profit before tax''
as reported in the statement of profit and loss
because of items of income or expense that
are taxable or deductible in other years and
items that are never taxable or deductible.
Provision for current tax is made at the rate
of tax as applicable for the income of the
previous year as defined under Income Tax
Act,1961.

Current income tax assets and liabilities
are measured at the amount expected to
be recovered from or paid to the taxation
authorities as per Income Tax Act. Current
tax assets and current tax liabilities are offset
when there is a legally enforceable right to set
off the recognised amounts and there is an
intention to settle the asset and the liability
on a net basis.

Minimum Alternate Tax (''MAT'') paid in
accordance to the tax laws, which gives rise
to future economic benefits in the form of
adjustment of future tax liability is recognised
as an asset in the balance sheet when it is
probable that the future economic benefit
associated with it will flow to the Company
and asset can be measured reliably.

Upon adoption of the Appendix C to Ind AS 12,
the Company considered whether it has any
uncertain tax positions. The Appendix did not
have any significant impact on these financial
statements of the Company.

b) Deferred tax

The carrying amount of deferred tax assets is
reviewed at the end of each reporting period
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.

Deferred tax assets and liabilities are
measured at the tax rates that are expected
to apply in the period in which 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 end of each
reporting period.

The measurement of deferred tax liabilities
and assets reflects the tax consequences
that would follow from the manner in which
the Company expects, at the end of each
reporting period, to recover or settle the
carrying amount of its assets and liabilities.

Deferred tax assets and deferred tax liabilities
are offset when there is a legally enforceable
right to set off current tax assets against
current tax liabilities; and the deferred tax
assets and the deferred tax liabilities relate
to income taxes levied by the same taxation
authority.

Deferred tax relating to items recognised
outside the standalone statement of
profit and loss is recognised either in other
comprehensive income or in equity.

viii. Property, plant and equipment

a) Recognition and measurement

Property, plant and equipment are stated at
cost, net of recoverable taxes, trade discount
and rebates less accumulated depreciation
and impairment losses, if any.

Capital work in progress is stated at cost,
net of accumulated impairment loss, if any.

When parts of an item of property, plant and
equipment have significant cost in relation to
total cost and different useful lives, they are
recognised and depreciated separately.

Depreciation is recognised so as to write off
the cost of assets (other than freehold land)

less their residual values, using the straightÂ¬
line method, over the useful lives specified
in Schedule II to the Companies Act, 2013
except for the following items, where useful
life estimated on technical assessment, past
trends and differ from those provided in
Schedule II of the Companies Act, 2013.

The estimated useful lives, residual values and
depreciation method are reviewed at financial
year end, with the effect of any changes in
estimate are accounted for on a prospective
basis.

Depreciation on additions / deletions to
property, plant and equipments is provided
prorata from the month of addition / till the
month of deletion.

b) Subsequent costs

The cost of replacing part of an item of
property, plant and equipment is recognised
in the carrying amount of the item if it is
probable that the future economic benefits
embodied within the part will flow to the
Company and its cost can be measured
reliably. The costs of repairs and maintenance
are recognised in the standalone statement
of profit and loss as incurred.

c) Derecognition of property, plant and
equipment

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 arising on the disposal or retirement of
an item of property, plant and equipment is
determined as the difference between the
sales proceeds and the carrying amount of
the asset and is recognised in the standalone
statement of profit and loss.

x. Intangible assets

a) Intangible assets acquired separately

I ntangible assets that are acquired by the
Company, which have finite useful lives,
are measured at cost less accumulated
amortisation and accumulated impairment

losses. Amortisation is recognised on
straight-line basis over the estimated
useful lives. The estimated useful life and
amortisation method are reviewed at each
financial year end, with the effect of any
changes in estimate being accounted for
on a prospective basis. Cost includes any
directly attributable incidental expenses
necessary to make the assets ready for use.

b) Internally-generated intangible asset-
research and development expenditure

Expenditure on research activities is
recognised as an expense in the year in which
it is incurred.

An internally-generated intangible asset
arising from development is recognised if,
and only if, all of the following have been
demonstrated:

â¢ the technical feasibility of completing
the intangible asset so that it will be
available for use or sale;

â¢ the intention to complete the intangible
asset and use or sell it;

â¢ the ability to use or sell the intangible
asset;

â¢ how the intangible asset will generate
probable future economic benefits;

â¢ the availability of adequate technical,
financial and other resources to
complete the development and to
use or sell the intangible asset; and

â¢ the ability to measure reliably the
expenditure attributable to the intangible
asset during its development.

The amount initially recognised for internally-
generated intangible assets is the sum of the
expenditure incurred from the date when the
intangible asset first meets the recognition
criteria listed above. Where no internally-
generated intangible asset can be recognised,
development expenditure is recognised in the
standalone statement of profit and loss in the
period in which it is incurred.

Subsequent to initial recognition, internally-
generated intangible assets are reported
at cost less accumulated amortisation and
accumulated impairment losses, on the same
basis as intangible assets that are acquired
separately.

d) Subsequent costs

Subsequent costs are capitalised only when
it increases the future economic benefits
embodied in the specific asset to which it
relates. All other expenditures, including
expenditure on internally-generated
intangibles, are recognised in the standalone
statement of profit and loss as incurred.

e) Derecognition of intangible assets

An intangible asset is derecognised on
disposal, or when no future economic benefits
are expected from use or disposal. Gains
or losses arising from derecognition of an
intangible asset, measured as the difference
between the net disposal proceeds and the
carrying amount of the asset are recognised
in the standalone statement of profit and loss.

x. Inventories

Inventories are valued at the lower of cost and
net realisable value.

Cost includes cost of purchase and other
costs incurred in bringing the inventories to
their present location and condition. Costs
are determined on First in First Out basis
(FIFO) as follows:

(i) Raw materials, packing materials and fuel:
At actual purchase cost including other cost
incurred in bringing materials / consumables
to their present location and condition

(ii) Work-in-progress and intermediates:
At material cost, conversion costs and
appropriate share of production overheads
based on normal capacity

(iii) Finished goods: At material cost,
conversion costs and an appropriate share
of production overheads based on normal
capacity

(iv) Stock-in-trade: At purchase and other
costs incurred in bringing the inventories to
their present location and condition

However, materials and other items held for
use in production of inventory are not written

down below cost, if the finished product in
which they will be used are expected to be
sold at or above cost.

Net realisable value is the estimated selling
price in the ordinary course of business,
less estimated costs of completion and the
estimated costs necessary to make the sale.

Mar 31, 2024

1. CORPORATE INFORMATION

The standalone financial statements comprise financial statements of SeQuent Scientific Limited (the "Company") (CIN L99999MH1985PLC036685) incorporated and domiciled in India and has its registered office located at 301, 3^rd Floor, Dosti Pinnacle, Plot No. E7 Road No. 22, Wagle Industrial Estate, Thane (W), Maharashtra - 400604, India. The shares of the Company are publicly traded on the National Stock Exchange of India Limited and BSE Limited. The Company is a leading integrated pharmaceutical company with a global footprint, operating in the domains of Active Pharmaceutical Ingredients.

2 Material accounting policies

2.1 Statement of compliance

The standalone financial statements have been prepared in accordance with Indian Accounting Standards ("Ind AS") notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and presentation requirements of Division II of Schedule III to the Companies Act, 2013.

The standalone financial statements were approved for issue in accordance with a resolution of the director as on 15 May 2024.

2.2 Basis of preparation and presentation

The standalone financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. Fair value for measurement and / or disclosure purposes in these standalone financial statements is determined on such a basis, except for

â¢ Share-based payment transaction as defined in Ind AS 102 - Share-based payment.

â¢ Leasing transaction as defined in Ind AS 116 - Leases.

â¢ Measurement that have some similarities to fair value but are not fair value, such as ''Net Realisable Value'' as defined in Ind AS 2 - Inventories and value in use as defined in Ind AS 36- Impairment of Assets.

The standalone financial statements have been prepared on accrual and going concern basis. The accounting policies are applied consistently to all the periods presented in the financial statements. All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

2.3 Functional and presentation currency

These standalone financial statements are presented in Indian Rupees (''), which is the Company''s functional currency. All financial information presented in '' has been rounded to the nearest million (up to two decimals), except otherwise stated.

2.4 Summary of material accounting policies

i. Revenue from contract with customer

a) Sale of products

Revenue from sale of products is presented in the income statement within revenue from operations. The Company presents revenue net of indirect taxes in its standalone statement of profit and loss. Sale of products comprise revenue from sales of products, net of sales returns, rebates, incentives and customer discounts.

Revenue from contract with customer is recognized when the Company transfers control over the product to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Control of a product refers to the ability to direct the use of and obtain substantially all of the remaining benefits from that asset. Performance obligations are satisfied at one point in time, typically on delivery. Most of the revenue earned by the Company is derived from the satisfaction of a single performance obligation for each contract which is the sale of products

Sales are measured at the fair value of consideration received or receivable. The amounts of rebates / incentives is estimated and accrued on each of the underlying sales transactions recognised. Returns and customer discounts are recognized in the period in which the underlying sales are recognized based on an estimate basis. The amount of sales returns is calculated on the basis of management''s best estimate of the amount of product that will ultimately be returned by customers.

Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the said earned consideration.

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 received from customer or due, whichever is earlier. Contract liabilities are recognised as revenue when the Company performs under the contract.

b) Services

Income is recognised when the services are completed as per the terms of the agreement and when no significant uncertainty as to its determination or realisation exists.

c) Export entitlements income

Export entitlements from Government authorities are recognised in the standalone statement of profit and loss when the right to receive credit as per the terms of the scheme is established in respect of the exports made by the Company, and where there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds.

d) Interest and dividend income

Dividend income from investments is recognised when the Company''s right to receive payment has been established.

ii. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current / non-current classification.

An asset is treated as current when:

- It is expected to be realised or intended to be sold or consumed in normal operating cycle,

- It is held primarily for the purpose of trading,

- It is expected to be realised within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle,

- It is held primarily for the purpose of trading,

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

iii. Foreign currency transactions and translation

Transactions in currencies other than the entity''s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at that date. Exchange differences arising on settlement or translation of monetary items are recognised in the standalone statement of profit and loss in the year in which it arises.

Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated to the functional currency at the exchange rate at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the initial transaction.

Exchange difference on capital expenditure are capitalised only to the extent attributable of borrowing costs and balance is charged to the standalone statement of profit and loss.

iv. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or erection of qualifying assets are added to the cost of those assets, until such time that the assets are substantially ready for their intended use. Qualifying assets are assets which take a substantial period of time to get ready for their intended use or sale.

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

All other borrowing costs are recognised in the standalone statement of profit and loss in the period in which they are incurred.

v. Employee Benefits

a) Defined Contribution Plans

The Company has defined contribution plans for post-employment benefits in the form of provident fund which is administered through Government of India. Provident fund is classified as defined contribution plans as the Company has no further obligation beyond making the contributions. The Company''s contributions to defined contribution plans are charged to the standalone statement of profit and loss as and when employee renders related service.

b) Defined benefit plans

Payments to defined benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company''s gratuity scheme is in the nature of defined benefit plans.

For defined benefit plans, the cost of providing benefit is determined using projected unit credit method, with actuarial valuation being carried out at the end of each financial year. Re-measurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to the standalone statement of profit and loss. Past service cost is recognised in the statement of profit and loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorised as follows:

â¢ service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);

â¢ net interest expense or income; and

â¢ re-measurement gain/ (loss).

The Company presents the service cost of defined benefit plan in the line item ''Employee benefits expense'' and the net interest expense or income in the line item ''Finance costs'' of the standalone statement of profit and loss. The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the Company''s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plan.

c) Short-term employee benefits

A liability is recognised for short-term employee benefit in respect of wages and salaries, annual leave, medical and leave travel in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.

d) Other employee benefits

Other employee benefits comprise of leave encashment which is provided for, based on the actuarial valuation carried out as at the end of the year. Liabilities recognised in respect of other employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.

vi. Share-based compensation

Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. Details regarding the determination of the fair value of equity-settled share-based transactions are set out in note 46.

The fair value determined at the grant date of the equity-settled share-based payments is expensed on a systematic basis over the vesting period, based on the Company''s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in the standalone statement of profit and loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the equity-settled employee benefits reserve.

vii. Taxation

Income tax comprises current and deferred tax. Income tax expense is recognised in the standalone statement of profit and loss except to the extent it relates to items directly recognised in equity or in other comprehensive income.

a) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported in the standalone statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. Provision for current tax is made at the rate of tax as applicable for the income of the previous year as defined under Income Tax Act,1961. Current income tax relating to items recognised, either in other comprehensive income or directly in equity, is also recognised in other comprehensive income or in equity, as appropriate and not in the Statement of Profit and Loss.

Minimum Alternate Tax (''MAT'') paid in accordance to the tax laws, which gives rise to future economic benefits in the form of adjustment of future tax liability is recognised as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the Company and asset can be measured reliably.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis.

Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Company has considered the effect of uncertainty for each uncertain tax treatment by using either most likely method or expected value method, depending on which method predicts better resolution of the treatment."

b) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the standalone financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which 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 end of each reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of each reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities; and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority.

Deferred tax relating to items recognised outside the standalone statement of profit and loss is recognised either in other comprehensive income or in equity.

viii. Property, plant and equipment

a) Recognition and measurement

Property, plant and equipment are stated at cost, net of recoverable taxes, trade discount and rebates less accumulated depreciation and impairment losses, if any.

Cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for its intended use. The cost of self-constructed assets includes the cost of materials and other costs directly attributable to bringing the asset to a working condition for its intended use.

Capital work in progress is stated at cost, net of accumulated impairment loss, if any.

When parts of an item of property, plant and equipment have significant cost in relation to total cost and different useful lives, they are recognised and depreciated separately.

Depreciation is recognised so as to write off the cost of assets (other than freehold land) less their residual values, using the straight-line method, over the useful lives specified in Schedule II to the Companies Act, 2013 except for the following items, where useful life estimated on technical assessment, past trends and differ from those provided in Schedule II of the Companies Act, 2013.

Nature of the assets	Useful life in years
Buildings	5-30
Plant and machinery	2-15
Computers	3
Furniture and fixtures 2	16
Office Equipments	2-5
Vehicles	3-8

The estimated useful lives, residual values and depreciation method are reviewed at financial year end, with the effect of any changes in estimate are accounted for on a prospective basis.

Depreciation on additions / deletions to property, plant and equipments is provided pro rata from the month of addition / till the month of deletion.

b) Subsequent costs

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The costs of repairs and maintenance are recognised in the standalone statement of profit and loss as incurred.

c) Derecognition of property, plant and equipment

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 arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the standalone statement of profit and loss.

ix. Intangible assets

a) Intangible assets acquired separately

Intangible assets that are acquired by the Company, which have finite useful lives, are measured at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on straight-line basis over the estimated useful lives. The estimated useful life and amortisation method are reviewed at each financial year end, with the effect of any changes in estimate being accounted for on a prospective basis. Cost includes any directly attributable incidental expenses necessary to make the assets ready for use.

b) Internally-generated intangible asset-research and development expenditure

Expenditure on research activities is recognised as an expense in the year in which it is incurred.

An internally-generated intangible asset arising from development is recognised if, and only if, all of the following have been demonstrated:

â¢ the technical feasibility of completing the intangible asset so that it will be available for use or sale;

â¢ the intention to complete the intangible asset and use or sell it;

â¢ the ability to use or sell the intangible asset;

â¢ how the intangible asset will generate probable future economic benefits;

â¢ the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and"

the ability to measure reliably the expenditure attributable to the intangible asset during its development.

The amount initially recognised for internally-generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible asset can be recognised, development expenditure is recognised in the standalone statement of profit and loss in the period in which it is incurred.

Subsequent to initial recognition, internally-generated intangible assets are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

c) Useful lives of intangible assets

Estimated useful lives of the intangible assets are as follows:

Nature of the assets	Useful life in years
Product / process development	5
Software	3-5

d) Subsequent costs

Subsequent costs are capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditures, including expenditure on internally-generated intangibles, are recognised in the standalone statement of profit and loss as incurred.

e) Derecognition of intangible assets

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset are recognised in the standalone statement of profit and loss.

x. Inventories

Inventories are valued at the lower of cost and net realisable value.

Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Costs are determined on First in First Out basis (FIFO) as follows:

(i) Raw materials, packing materials and fuel: At actual purchase cost including other cost incurred in bringing materials / consumables to their present location and condition

(ii) Work-in-progress and intermediates: At material cost, conversion costs and appropriate share of production overheads based on normal capacity

(iii) Finished goods: At material cost, conversion costs and an appropriate share of production overheads based on normal capacity

(iv) Stock-in-trade: At purchase and other costs incurred in bringing the inventories to their present location and condition

However, materials and other items held for use in production of inventory are not written down below cost, if the finished product in which they will be used are expected to be sold at or above cost.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

xi. Provisions and contingent liabilities

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of each reporting period, taking into account the risks and uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the 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 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. Contingent assets are not recognised but are disclosed in the notes to standalone financial statements when economic inflow is probable.

xii. 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 and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instruments.

All financial instruments are initially measured at fair value. Transaction costs that are attributable to the acquisition or issue of the financial assets and financial liabilities (other than financial assets recorded at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities as appropriate, on initial recognition. Transaction cost directly attributable to the acquisition or issue of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in the standalone statement of profit and loss.

Purchase 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 trade) are recognised on trade date.

For the purpose of subsequent measurement, financial instruments of the Company are classified in the following categories: non-derivative financial assets comprising amortised cost, debt instruments at fair value through other comprehensive income (FVTOCI), equity instruments at fair value through other comprehensive income (FVTOCI) and fair value through profit or loss (FVTPL), non-derivative financial liabilities at amortised cost or FVTPL and derivative financial instruments (under the category of financial assets or financial liabilities) at FVTPL.

The classification of financial instruments depends on the objective of the business model for which it is held. Management determines the classification of its financial instruments at initial recognition.

a) Non-derivative financial assets

(i) Financial assets at amortised cost

A financial asset is measured at amortised cost if both of the following conditions are met:

(a) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows, and

(b) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets are measured initially at fair value plus transaction costs and subsequently carried at amortised cost using the effective interest rate (''EIR'') method, less any impairment loss.

Financial assets at amortised cost are represented by trade receivables, security deposits, cash and cash equivalents, employee and other advances and eligible current and non-current assets.

(ii) Equity instruments at fair value through other comprehensive income (FVTOCI)

All equity instruments other than investment in subsidiaries are measured at fair value. Equity instruments held for trading is classified as fair value through profit or loss (FVTPL). For all other equity instruments, the Company may make an irrevocable election to present subsequent changes in the fair value in OCI. The Company makes such election on an instrument-by-instrument basis.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividend are recognised in OCI. There is no recycling of the amount from OCI to the standalone statement of profit and loss, even on sale of the instrument. However the Company may transfer the cumulative gain or loss within the equity.

(iii) Financial assets at fair value through profit or loss (FVTPL)

FVTPL is a residual category for financial assets. Any financial asset which does not meet the criteria for categorisation as at amortised cost or as FVTOCI, is classified as FVTPL.

In addition, the Company may elect to designate the financial asset, which otherwise meets amortised cost or FVTOCI criteria, as FVTPL if doing so eliminates or significantly reduces a measurement or recognition inconsistency.

Financial assets included within the FVTPL category are measured at fair values with all changes in the standalone statement of profit and loss.

(iv) Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or the financial assets is transferred and the transfer qualifies for derecognition. On derecognition of a financial asset in its entirety, the difference between the carrying amount (measured at the date of derecognition) and the consideration received (including any new assets obtained less any new liability assumed) shall be recognised in the standalone statement of the profit and loss except for debt and equity instruments carried through FVTOCI which shall be recognised in OCI.

b) Non-derivative financial liabilities

(i) Financial liabilities at amortised cost

Financial liabilities at amortised cost represented by trade and other payables are initially recognised at fair value, and subsequently carried at amortised cost using the EIR method.

(ii) Financial liabilities at fair value through profit or loss (FVTPL)

Financial liabilities at FVTPL are measured at fair value with all changes recognised in the standalone statement of profit and loss.

iii) Derecognition of financial liabilities

The Company derecognises financial liabilities only when, the obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in the standalone statement of profit and loss.

c) Derivative financial instruments

The Company holds derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in foreign exchange rates on foreign currency assets or liabilities. Derivatives are recognised and measured at fair value. Attributable transaction cost are recognised in the standalone statement of profit and loss.

xiii. Impairment

a) Financial assets

In accordance with Ind AS 109 - Financial Instruments, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss. The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivable.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting period, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition.

Lifetime ECLs are the expected credit losses resulting from all possible default events over the expected life of a financial instrument.

ECL 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 entity expects to receive (i.e. all shortfalls), discounted at the original EIR. When estimating the cash flows, an entity is required to consider:

(i) All contractual terms of the financial instrument (including prepayment, extension etc.) over the expected life of the financial instrument. However, in rare cases when the expected life of the financial instrument cannot be estimated reliably, then the entity is required to use the remaining contractual term of the financial instrument;

(ii) Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

As a practical expedient, the Company uses a provision matrix to determine impairment loss on portfolio of its trade receivable. The provision matrix is based on its historically observed default rates over the expected life of the trade receivable and is adjusted for forward- looking estimates. At every reporting date, the historical observed default rates are updated and changes in forward-looking estimates are analysed.

ECL impairment loss allowance (or reversal) recognised during the period is recognised as income / expense in the statement of profit and loss. This amount is reflected under the head other expenses in the standalone statement of profit and loss. The balance sheet presentation for various financial instruments is described below:

Financial assets measured at amortised cost, contractual revenue receivables.

ECL is presented as an allowance, i.e. as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write off criteria, the Company does not reduce impairment allowance from the gross carrying amount.

b) Non-financial 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.

An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset''s carrying amount exceeds its recoverable amount. The recoverable amount is higher of an asset''s fair value less cost of disposal and value in use. Value in use is based on the estimated future cash flows, discounted to their present value using pre-tax discount rate that reflects current market assessments of the time value of money and risk specific to the assets. For the purpose of assessing impairment, assets are grouped at the lowest levels into cash generating units for which there are separately identifiable cash flows.

An impairment loss recognised in prior years are reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed 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 had been recognised in previous year

xiv. Earnings per share

Basic EPS is computed by dividing the net profit for the period attributable to the equity shareholders by the weighted average number of equity shares outstanding during the period.

Diluted EPS is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic EPS and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for bonus shares, as appropriate.

xv. Leases

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 shortterm 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.

i) Right-of-use assets (ROU)

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 of the lease term.

The right-of-use assets are also subject to impairment. Refer to the accounting policies (xiii)(b) Impairment of non-financial assets.

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, as follows:

All amounts are in '' million unless otherwise stated
Nature of the asset	Useful life in year
ROU-Land	50-85
ROU- Server	5
ROU- Vehicle	4
ROU- Building	2

Company as a 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 assets and recognised over the lease terms on the same basis as rental income.

ii) 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. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs. 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.

xvi. Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

xvii. Cash Dividend

The Company recognises a liability to pay dividend to equity holders of the Company when the distribution is authorised and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

xviii. Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

â¢ In the principal market for the asset or liability or

â¢ In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

â¢ Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities

â¢ Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

â¢ Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

xix. Exceptional items

Exceptional items include income or expense that are considered to be part of ordinary activities, however, are of such significance and nature that separate disclosure enables the user of Financial Statements to understand the impact in a more meaningful manner. Exceptional items are identified by virtue of either their size or nature so as to facilitate comparison with prior periods and to assess underlying trends in the financial performance of the Company

2.5 Use of estimates and management judgments

In application of the accounting policies, which are described in note 2.4, the management of the Company is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods. In particular, information about significant areas of estimation, uncertainty and critical judgements used in applying accounting policies that have the most significant effect on the amounts recognised in the standalone financial statements is included in the following notes:

i. Useful life of property, plant and equipment and intangible assets

The useful life of the assets are determined in accordance with Schedule II of the Companies Act, 2013. In cases, where the useful life is different from that or is not prescribed in Schedule II, it is based on technical advice, taking into account amongst other things, the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance.

ii. Impairment

An impairment loss is recognised for the amount by which an asset''s / investments or cash-generating unit''s carrying amount exceeds its recoverable amount. To determine the recoverable amount, management estimates expected discounted future cash flows from each asset or cash-generating unit.

iii. Deferred tax

Deferred income tax liabilities are recognised for all taxable temporary differences. Deferred income 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.

iv. Fair value

Management uses valuation techniques in measuring the fair value of financial instruments where active market quotes are not available. In applying the valuation techniques, management makes maximum use of market inputs and uses estimates and assumptions that are, as far as possible, consistent with observable data that market participants would use in pricing the instrument. Where applicable data is not observable, management uses its best estimate about the assumptions that market participants would make. These estimates may vary from the actual prices that would be achieved in an arm''s length transaction at the reporting date.

v. Post-retirement benefit plans

The obligation arising from the defined benefit plan is determined on the basis of actuarial assumptions which include discount rate, trends in salary escalation and vested future benefits and life expectancy. The discount rate is determined with reference to market yields at each financial year end on the government bonds.

vi. Provisions and contingencies

The recognition and measurement of other provisions are based on the assessment of the probability of an outflow of resources, and on past experience and circumstances known at the reporting date. The actual outflow of resources at a future date may therefore vary from the figure estimated at end of each reporting period.

vii. Share based payments

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them. For the measurement of the fair value of equity-settled transactions with employees at the grant date, the Company uses black scholes model Employee Share Option Plan. The assumptions used for estimating fair value for share-based payment transactions are disclosed in Note 46.

Mar 31, 2023

1. CORPORATE INFORMATION

SeQuent Scientific Limited (the "Company") is a Company incorporated and domiciled in India and has its registered office located at 301, 3^rd Floor, Dosti Pinnacle, Plot No. E7 Road No. 22, Wagle Industrial Estate, Thane (W), Maharashtra - 400604, India. The shares of the Company are publicly traded on the National Stock Exchange of India Limited and BSE Limited. The Company is a leading integrated pharmaceutical company with a global footprint, operating in the domains of Active Pharmaceutical Ingredients.

2 SIGNIFICANT ACCOUNTING POLICIES

2.1 Statement of compliance

The standalone financial statements have been prepared in accordance with Indian Accounting Standards ("Ind AS") notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and presentation requirements of Division II of Schedule III to the Companies Act, 2013.

2.2 Basis of preparation and presentation

The standalone financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. Fair value for measurement and / or disclosure purposes in these standalone financial statements is determined on such a basis, except for

â¢ Share-based payment transaction as defined in Ind AS 102 - Share-based payment.

â¢ Leasing transaction as defined in Ind AS 116 - Leases.

â¢ Measurement that have some similarities to fair value but are not fair value, such as ''Net Realisable Value'' as defined in Ind AS 2 - Inventories and value in use as defined in Ind AS 36- Impairment of Assets.

2.3 Functional and presentation currency

These standalone financial statements are presented in Indian Rupees (INR), which is the Company''s functional currency. All financial information presented in INR has been rounded to the nearest million (upto two decimals), except otherwise stated.

2.4 Significant Accounting Policies

i. Revenue Recognition

a) Sale of products

Revenue from sale of products is presented in the income statement within revenue from operations. The Company presents revenue net of indirect taxes in its standalone statement of profit and loss. Sale of products comprise revenue from sales of products, net of sales returns, rebates, incentives and customer discounts.

Revenue is recognized when the Company transfers control over the product to the customers; control of a product refers to the ability to direct the use of, and obtain substantially all of the remaining benefits from that asset. Performance obligations are satisfied at one point in time, typically on delivery.The majority of revenue earned by the Company is derived from the satisfaction of a single performance obligation for each contract which is the sale of products.

Sales are measured at the fair value of consideration received or receivable. The amounts of rebates / incentives is estimated and accrued on each of the underlying sales transactions recognised. Returns and customer discounts are recognized in the period in which the underlying sales are recognized based on an estimate basis. The amount of sales returns is calculated on the basis of management''s best estimate of the amount of product that will ultimately be returned by customers.

Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the said earned consideration.

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 received from customer or due, whichever is earlier. Contract liabilities are recognised as revenue when the Company performs under the contract.

b) Services

Income is recognised when the services are completed as per the terms of the agreement and when no significant uncertainty as to its determination or realisation exists.

c) Export entitlements income

Export entitlements from Government authorities are recognised in the standalone statement of profit and loss when the right to receive credit as per the terms of the scheme is established in respect of the exports made by the Company, and where there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds.

d) Interest and dividend income

Dividend income from investments is recognised when the Company''s right to receive payment has been established.

ii. Foreign currency transactions and translation

Transactions in currencies other than the entity''s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at that date. Exchange differences arising on settlement or translation of monetary items are recognised in the standalone statement of profit and loss in the year in which it arises.

Exchange difference on capital expenditure are capitalised only to the extent attributable of borrowing costs and balance is charged to the standalone statement of profit and loss.

iii. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or erection of qualifying assets are added to the cost of those assets, until such time that the assets are substantially ready for their intended use. Qualifying assets are assets which take a substantial period of time to get ready for their intended use or sale.

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

All other borrowing costs are recognised in the standalone statement of profit and loss in the period in which they are incurred.

iv. Employee Benefits

a) Defined Contribution Plans

The Company has defined contribution plans for post-employment benefits in the form of provident fund which is administered through Government of India. Provident fund is classified as defined contribution plans as the Company has no further obligation beyond making the contributions. The Company''s contributions to defined contribution plans are charged to the standalone statement of profit and loss as and when employee renders related service.

b) Defined benefit plans

Payments to defined benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company''s gratuity scheme is in the nature of defined benefit plans.

The gratuity scheme is funded by the Company with Life Insurance Corporation of India.

For defined benefit plans, the cost of providing benefit is determined using projected unit credit method, with actuarial valuation being carried out at the end of each financial year. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Re-measurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to the standalone statement of profit and loss. Past service cost is recognised in the statement of profit and loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorised as follows:

â¢ service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);

â¢ net interest expense or income; and

â¢ re-measurement gain/ (loss).

The Company presents the service cost of defined benefit plan in the line item ''Employee benefits expense'' and the net interest expense or income in the line item ''Finance costs'' of the standalone statement of profit and loss. The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the Company''s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plan.

c) Short-term employee benefits

A liability is recognised for short-term employee benefit in respect of wages and salaries, annual leave, medical and leave travel in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.

d) Other employee benefits

Other employee benefits comprise of leave encashment which is provided for, based on the actuarial valuation carried out as at the end of the year. Liabilities recognised in respect of other employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.

v. Share-based compensation

Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. Details regarding the determination of the fair value of equity-settled share-based transactions are set out in note 46.

that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in the standalone statement of profit and loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the equity-settled employee benefits reserve.

vi. Taxation

Income tax comprises current and deferred tax. Income tax expense is recognised in the standalone statement of profit and loss except to the extent it relates to items directly recognised in equity or in other comprehensive income.

a) Current tax

Current income tax relating to items recognised, either in other comprehensive income or directly in equity, is also recognised in other comprehensive income or in equity, as appropriate and not in the Statement of Profit and Loss.

Minimum Alternate Tax (''MAT'') paid in accordance to the tax laws, which gives rise to future economic benefits in the form of adjustment of future tax liability is recognised as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the Company and asset can be measured reliably.

The Company has considered the effect of uncertainty for each uncertain tax treatment by using either most likely method or expected value method, depending on which method predicts better resolution of the treatment.

b) Deferred tax

The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which 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 end of each reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of each reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities; and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority.

Deferred tax relating to items recognised outside the standalone statement of profit and loss is recognised either in other comprehensive income or in equity.

vii. Property, plant and equipment

a) Recognition and measurement

Property, plant and equipment are stated at cost, net of recoverable taxes, trade discount and rebates less accumulated depreciation and impairment losses, if any.

Cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for its intended use. The cost of self-constructed assets includes the cost of materials and other costs directly attributable to bringing the asset to a working condition for its intended use.

Capital work in progress is stated at cost, net of accumulated impairment loss, if any.

When parts of an item of property, plant and equipment have significant cost in relation to total cost and different useful lives, they are recognised and depreciated separately.

Nature of the assets	Useful life in years
Buildings	5-30
Plant and machinery	2-15
Computers	3
Furniture and fixtures	2-16
Office Equipments	2-5
Vehicles	3-8

The estimated useful lives, residual values and depreciation method are reviewed at financial year end, with the effect of any changes in estimate are accounted for on a prospective basis.

Depreciation on additions / deletions to property, plant and equipments is provided prorata from the month of addition / till the month of deletion.

b) Subsequent costs

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The costs of repairs and maintenance are recognised in the standalone statement of profit and loss as incurred.

c) Derecognition of property, plant and equipment

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 arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the standalone statement of profit and loss.

viii. Intangible assets

a) Intangible assets acquired separately

amortisation method are reviewed at each financial year end, with the effect of any changes in estimate being accounted for on a prospective basis. Cost includes any directly attributable incidental expenses necessary to make the assets ready for use.

b) Internally-generated intangible asset-research and development expenditure

Expenditure on research activities is recognised as an expense in the year in which it is incurred.

An internally-generated intangible asset arising from development is recognised if, and only if, all of the following have been demonstrated:

â¢ the technical feasibility of completing the intangible asset so that it will be available for use or sale;

â¢ the intention to complete the intangible asset and use or sell it;

â¢ the ability to use or sell the intangible asset;

â¢ how the intangible asset will generate probable future economic benefits;

â¢ the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and

â¢ the ability to measure reliably the expenditure attributable to the intangible asset during its development.

The amount initially recognised for internally-generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible asset can be recognised, development expenditure is recognised in the standalone statement of profit and loss in the period in which it is incurred.

Subsequent to initial recognition, internally-generated intangible assets are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

c) Useful lives of intangible assets

Estimated useful lives of the intangible assets are as follows:

Nature of the assets Useful life in years

Product / process development 5

Software 3-5

d) Subsequent costs

Subsequent costs are capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditures, including expenditure on internally-generated intangibles, are recognised in the standalone statement of profit and loss as incurred.

e) Derecognition of intangible assets

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset are recognised in the standalone statement of profit and loss.

ix. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current / non-current classification. An asset is treated as current when it is:

- Expected to be realised or intended to be sold or consumed in normal operating cycle,

- Held primarily for the purpose of trading,

- Expected to be realised within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

It is expected to be settled in normal operating cycle

- It is held primarily for the purpose of trading,

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

- Deferred tax assets and liabilities are classified as non-current assets and liabilities.