Provisions, Contingent Liabilities and Contingent Assets

The Company creates a provision when there is a present obligation as a result of past event that probably
require an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions
are measured at the best estimate of the expenditure required to settle the present obligation at the
balance sheet date and are not discounted to the present value. These are reviewed at each year end
and adjuste to reflect the best current estimate.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that
may or may not require an outflow of resources. When there is a possible obligation or present obligation in
respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent Assets are neither recognised nor disclosed in the financial statements. However, contingent
Assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the
asset and related income are recognised in the period in which change occurs.

2.17 Cash and Cash Equivalents

Cash and Cash Equivalents in the balance sheet and for the purpose of cash flow statement comprise cash
in hand and cash at bank including fixed deposit with original maturity period of three months and short-term
highly liquid investments with an original maturity of three months or less net of outstanding bank over drafts
as they are considered an integral part of the Company's cash management.

2.18 Financial Instruments

• Initial Recognition

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability of
equity instrument of another entity. Financial assets and financial liabilities are recognised when the
Company becomes a party to the contractual provisions of the instruments.

• Financial Assets and Financial Liabilities are Initially Measured at Fair Value

Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial liabilities 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 costs directly attributable to the acquisition of financial assets or financial liabilities
at fair value through profit or loss are recognised immediately in statement of profit and loss.

• Subsequent Measurement

I. Financial Assets

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date
basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of
assets within the time frame established by regulation or convention in the market place.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair
value, depending on the classification of the financial assets.

II. Financial assets carried at amortized cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a
business whose objective is to hold these assets in order to collect contractual cash flows and 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.

III. Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held
within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets and 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.

On initial recognition, the Company makes an irrevocable election on an instrument-by-instrument basis to

present the subsequent changes in fair value in other comprehensive income pertaining to investments in

equity instruments, other than equity investment which are held for trading. Subsequently, they are measured

at fair value with gains and losses arising from changes in fair value recognised in other comprehensive

income and accumulated in the 'Reserve for equity instruments through other comprehensive income'. The

cumulative gain or loss is not reclassified to profit or loss on disposal of the investments.

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IV. Financial assets at fair value through profit or loss

Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on
initial recognition to present subsequent changes in fair value in other comprehensive income for
investments in equity instruments which are not held for trading.

Other financial assets are measured at fair value through profit or loss unless it is measured at amortised
cost or at fair value through other comprehensive income on initial recognition. The transaction costs
directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are
immediately recognised in profit or loss.

V. Impairment of financial assets

The Company assesses at each date of balance sheet whether a financial asset or a group of financial
assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance.
The Company recognises lifetime expected losses for all contracts assets and/or all trade receivables that
do not constitute a financing transaction. For all other financial assets, credit losses are measured at an
amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit
losses if the credit risk on the financial assets has increased significantly since initial recognition.

VI. Financial liabilities and equity instruments

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except
for contingent consideration recognized in a business combination, which is subsequently measured at fair
value through profit or loss. For trade and other payables maturing within one year from the Balance Sheet
date, the carrying amounts approximate fair value due to the short maturity of these instruments.

a) Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity
in accordance with the substance of the contractual arrangements and the definitions of a financial liability
and an equity instrument.

b) Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments are issued by the Company are recognised at the proceeds
received, net of direct issue costs.

VII. Derecognition of financial instruments

The company derecognizes a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset and the transfer qualifies for Derecognition under Ind
AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company's Balance
Sheet when the obligation specified in the contract is discharged or cancelled or expires.

• Recent Accounting Pronouncements

On 23rd March, 2022, the Ministry of Corporate Affairs(MCA) has notified certain amendment to existing Ind
AS. These amendments shall be applicable to the Company from 1st April, 2022. Amendment to Existing
issued Ind AS the MCA has carried out amendments of the following accounting standards.