n. Provisions

A provision is recognised when the Company has a present obligation (legal or constructive) as a
result of past event, it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation. These estimates are reviewed at each reporting date and adjusted to reflect the
current best estimates. If the effect of the time value of money is material, provisions are
discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the provision due to the passage of time is
recognised as a finance cost.

o. Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond
the control of the Company or a present obligation that is not recognized because it is not
probable that an outflow of resources will be required to settle the obligation. A contingent

liability also arises in extremely rare cases where there is a liability that cannot be recognized
because it cannot be measured reliably. The Company does not recognize a contingent liability
but discloses its existence in the financial statements.

p. Dividend Distributions

The Company recognizes a liability to make payment of dividend to owners of equity when the
distribution is authorized and is no longer at the discretion of the Group and is declared by the
shareholders. A corresponding amount is recognized directly in equity.

The company recognises the income tax consequences of dividends as defined in Ind AS 109
when it recognises a liability to pay a dividend.

q. Fair value measurement

The Company measures financial instruments at fair value at each balance sheet date.

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:

(i) In the principal market for asset or liability, or

(ii) 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.

A fair value measurement of a non-financial asset takes into account a market participant's
ability to generate economic benefits by using the asset in its highest and best use or by selling it
to another market participant that would use the asset in its highest and best use.

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 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:

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

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

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

For assets and liabilities that are recognised in the financial statements on a recurring basis,
theCompany determines whether transfers have occurred between levels in the hierarchy by
reassessing categorisation (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level
of the fair value hierarchy as explained above.

r. Employee Benefits

Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled
wholly within twelve months after the end of the period in which the employees render the
related service are recognized in respect of employee service upto the end of the reporting
period and are measured at the amount expected to be paid when the liabilities are settled. The
liabilities are presented as current employee benefit obligations in the balance sheet.

Post employment benefit obligations

i) Gratuity

The Employee's Group Gratuity Scheme, which is defined benefit plan, is managed by Life
Insurance Corporation of India (LIC). The liabilities with respect to Gratuity Plan are determined
by actuarial valuation on projected unit credit method on the balance sheet date, based upon
which the Company contributes to the LIC Group Gratuity Scheme. The Company has no
obligation, other than the contribution payable to the said scheme. Any liability arising on
account of gratuity payable, is borne by LIC.

The company has also recognised a provision for gratuity based on an actuarial valuation report
whereby the defined benefit obligations has been recognised at fair value using various actuarial
assumptions as mentioned in Note 23.1 of the financial statements.

ii) Provident Fund

Retirement benefit in the form of provident fund is a defined contribution scheme. The
Company has no obligation, other than the contribution payable to the provident fund. The
Company recognizes contribution payable to the provident fund scheme as anexpenditure,
when an employee renders the related services. If the contribution payable to the scheme for
service received before the balance sheet date exceeds the contribution already paid, the deficit
payable to the scheme is recognized as a liability after deducting the contribution already paid. If
the contribution already paid exceeds the contribution due for services received before the
balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will
lead to, for example, a reduction in future payment or a cash refund.

The company recognises in the statement of profit and loss, gains or losses on curtailment or
settlement of a defined benefit plan as and when the curtailment or settlement occurs.

Other long-term employee benefit obligations

i) Compensated Absences/Leave Encashment

Accumulated leaves which is expected to be utilized within next 12 months is treated as short
term employee benefit. The Company measures the expected cost of such absences as the
additional amount that it expects to pay as a result of the unused entitlement and discharge at
the year end.

ii) Share-based payments

Employees (including senior executives) of the Company may receive remuneration in the form
of share-based payments, whereby employees render services as consideration for equity
instruments (equity-settled transactions).

Equity-settled transactions

The cost of equity-settled transactions is determined by the fair value at the date when the grant
is made using an appropriate valuation model.

That cost is recognised, together with a corresponding increase in share-based payment (SBP)
reserves in equity, over the period in which the performance and/or service conditions are
fulfilled in employee benefits expense. The cumulative expense recognised for equity-settled
transactions at each reporting date until the vesting date reflects the extent to which the vesting
period has expired and the Company best estimate of the number of equity instruments that
willultimately vest. The statement of profit and loss expense or credit for a period represents the
movement in cumulative expense recognised as at the beginning and end of that period and is
recognised in employee benefits expense.

Service and non-market performance conditions are not taken into account when determining
the grant date fair value of awards, but the likelihood of the conditions being met is assessed as
part of the Company best estimate of the number of equity instruments that will ultimately vest.
Market performance conditions are reflected within the grant date fair value. Any other
conditions attached to an award, but without an associated service requirement, are considered
to be non-vesting conditions. Non-vesting conditions are reflected in the fair value of an award
and lead to an immediate expensing of an award unless there are also service and/or
performance conditions.

No expense is recognised for awards that do not ultimately vest because non-market
performance and/ or service conditions have not been met. Where awards include a market or
non-vesting condition, the transactions are treated as vested irrespective of whether the market
or non-vesting condition is satisfied, provided that all other performance and/or service
conditions are satisfied.

When the terms of an equity-settled award are modified, the minimum expense recognised is the
expense had the terms had not been modified, if the original terms of the award are met. An
additional expense is recognised for any modification that increases the total fair value of the
share based payment transaction, or is otherwise beneficial to the employee as measured at the
date of modification. Where an award is cancelled by the entity or by the counterparty, any
remaining element of the fair value of the award is expensed immediately through profit or loss.

The dilutive effect of outstanding options is reflected as additional share dilution in the
computation of diluted earnings per share.

s. Exceptional Items

Exceptional items are disclosed separately in the financial statements where it is necessary to do
so to provide further understanding of the financial performance of the Group. These are
material items of income or expense that have to be shown separately due to their nature or
incidence.

t. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the period. The weighted average number of equity shares outstanding
during the period is adjusted for events such as bonus issue, bonus element in a rights issue,
share split, and reverse share split (consolidation of shares) that have changed the number of
equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of shares outstanding
during the period are adjusted for the effect of all potentially dilutive equity shares.

u. 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

The Company classifies its financial assets in the following measurement categories:

• Those to be measured subsequently at fairvalue (either through other comprehensiveincome,
or through profit or loss)

• Those measured at amortized cost.

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the
acquisition of the financial asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

• Debt instruments at fair value through other comprehensive income (FVTOCI),

• Debt instruments at fair value through profit and loss (FVTPL),

• Debt instruments at amortized cost,

• Equity instruments.

Debt instruments at amortized cost

A debt instrument is measured at amortized cost if both the following conditions are met:

i) Business Model Test :The objective is to hold the debt instrument to collect the contractual cash
flows (rather than to sell the instrument prior to its contractual maturity to realise its fair value
changes).

ii) Cash Flow Characteristics Test:The contractual terms of the Debt instrument give rise on
specific dates to cash flows that are solely payments of principal and interest on principal
amount outstanding.

This category is most relevant to the Company. After initial measurement, such financial assets
aresubsequently measured at amortised cost using the effective interest rate (EIR) method.
Amortised cost is calculated by taking into account any discount or premium on acquisition and
fees or costs that are an integral part of EIR. EIR 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. When calculating the effective
interest rate, the Company estimates the expected cash flows by considering all the contractual
terms of the financial instrument but does not consider the expected credit losses. The EIR
amortisation is included in finance income in profit or loss. The losses arising from impairment
are recognised in the profit or loss. This category generally applies to trade and other
receivables.

Debt instruments at fair value through OCI

A Debt instrument is measured at fair value through other comprehensive income if following
criteria are met:

i) Business Model Test: The objective of financial instrument is achieved by both collecting
contractual cash flows and for selling financial assets.

ii) Cash Flow Characteristics Test: The contractual terms of the financial asset give rise on specific
dates to cash flows that are solely payments of principal and interest on principal amount
outstanding.

Financial Asset included within the FVTOCI category are measured initially as well as at each
reporting date at fair value. Fair value movements are recognized in the other comprehensive
income (OCI). However, the Group recognized the interest income, impairment losses and
reversals and foreign exchange gain or loss in the P&L. On de-recognition of asset, cumulative
gain or loss previously recognised in OCI is reclassified from the equity to P&L. Interest earned
whilst holding FVTOCI debt instrument is reported as interest income using the EIR method.

Debt instruments at FVTPL

FVTPL is a residual category for financial instruments. Any financial instrument, which does not
meet the criteria for amortized cost or FVTOCI, is classified as at FVTPL. A gain or loss on a debt
instrument that is subsequently measured at FVTPL and is not a part of a hedging relationship is
recognized in profit or loss and presented net in the statement of profit and loss within other
gains or losses in the period in which it arises. Interest income from these Debt instruments is
included in other income.

Equity investments of other entities

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments
which are held for trading and contingent consideration recognized by an acquirer in a business
combination to which Ind AS 103 applies are classified as at FVTPL. For all other equity
instruments, the Company may make an irrevocable election to present in profit & loss account
all subsequent changes in the fair value. The Company makes such election on an instrument-
by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTPL, then all fair value changes
on the instrument, excluding dividends, are recognized in the Profit & Loss Account. Equity
instruments included within the FVTPL category are measured at fair value with all changes
recognized in the Profit and loss.

De-recognition

A financial asset (or,where applicable, a part of a financial asset or part of a group of similar
financial assets) is primarily derecognised (i.e. removed from the Company statement of
financial position) when:

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred its rights to receive cash flows from the asset or has assumed
an obligation to pay the received cash flows in full without material delay to a third party
under a "pass through" arrangement and either;

• The Company has transferred the rights to receive cash flows from the financial assets or

• The Company has retained the contractual right to receive the cash flows of the financial
asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the Company has transferred an asset, the Company evaluates whether it has transferred
substantially all the risks and rewards of the ownership of the financial assets. In such cases, the
financial asset is derecognised. Where the entity has not transferred substantially all the risks
and rewards of the ownership of the financial assets, the financial asset is not derecognised.

Where the Company has neither transferred a financial asset nor retains substantially all risks
and rewards of ownership of the financial asset, the financial asset is derecognised if the
Company has not retained control of the financial asset. Where the Company retains control of
the financial asset, the asset is continued to be recognized to the extent of continuing
involvement in the financial asset.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit losses (ECL) model for
measurement and recognition of impairment loss on the following financial asset and credit risk
exposure :

• Financial assets measured at amortised cost;

• Financial assets measured at fair value through other comprehensive income(FVTOCI);

The Company follows "simplified approach" for recognition of impairment loss allowance on:

• Trade receivables or contract revenue receivables;

• All lease receivables resulting from the transactions within the scope of Ind AS 17.

Under the simplified approach, the Company does not track changes in credit risk. Rather, it
recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from
its initial recognition. The Company uses a provision matrix to determine impairment loss
allowance on the portfolio of trade receivables. The provision matrix is based on its historically
observed default rates over the expected life of trade receivable and is adjusted for forward
looking estimates. At every reporting date, the historical observed default rates are updated and
changes in the forward looking estimates are analysed.

For recognition of impairment loss on other financial assets and risk exposure, the Company
determines whether there has been a significant increase in the credit risk since initial
recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for
impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in
subsequent period, credit quality of the instrument improves such that there is no longer a
significant increase in credit risk since initial recognition, then the Company reverts to
recognising impairment loss allowance based on 12- months ECL.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified at initial recognition as financial liabilities at fair value through
profit or loss, loans and borrowings, and payables, net of directly attributable transaction costs.
The Company financial liabilities besides other may include loans and borrowings including
trade payables, trade deposits, retention money and liability towards services, sales incentive,
other payables and derivative financial instruments.

The measurement of financial liabilities depends on their classification, as described below:

Trade Payables

These amounts represent liabilities for goods and services provided to the Company prior to the
end of financial year which are unpaid. The amounts are unsecured and are usually paid within
180 days of recognition. Trade and other payables are presented as current liabilities unless
payment is not due within 12 months after the reporting period. They are recognized initially at
fair value and subsequently measured at amortized cost using EIR method.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading
and financial liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading if they are incurred for the purpose of
repurchasing in the near term. This category also includes derivative financial instruments
entered into by the Company that are not designated as hedging instruments in hedge
relationships as defined by Ind AS 109. Separated embedded derivatives are also classified as
held for trading unless they are designated as effective hedging instruments.

The Company has not designated any financial liability as at fair value through profit and loss.

De-recognition

The Company derecognizes a financial liability when the obligation under the liability is
discharged or cancelled or expires.

Reclassification of financial assets:

The Company determines classification of financial assets and liabilities on initial recognition.
After initial recognition, no reclassification is made for financial assets which are equity
instruments and financial liabilities. For financial assets which are debt instruments, a
reclassification is made only if there is a change in the business model for managing those assets.
Changes to the business model are expected to be infrequent. The Company senior management
determines change in the business model as a result of external or internal changes which are
significant to the Company operations. Such changes are evident to external parties. A change in
the business model occurs when the Company either begins or ceases to perform an activity that
is significant to its operations. If the Company reclassifies financial assets, it applies the
reclassification prospectively from the reclassification date which is the first day of the
immediately next reporting period following the change in business model. The Company
doesnot restate any previously recognised gains, losses (including impairment gains or losses) or
interest.

v. Cash and cash equivalents

Cash and cash equivalent 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.

w. Segment Reporting Policies

As the Company business activity primarily falls within a single business and geographical
segment and the Board of Directors monitors the operating results of its business units not
separately for the purpose of making decisions about resource allocation and performance
assessment. Segment performance is evaluated based on profit or loss and is measured
consistently with profit or loss in the standalone financial statements, thus there are no
additional disclosures to be provided under Ind AS 108 - "Segment Reporting". The
management considers that the various goods and services provided by the Company
constitutes single business segment, since the risk and rewards from these services are not
different from one another. The Company operating businesses are organized and managed
separately according to the nature of products and services provided, with each segment
representing a strategic business unit that offers different products and serves different markets.
The analysis of geographical segments is based on geographical location of the customers.

x. Cash Flow Statement

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the
effects transactions of a non-cash nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from regular revenue generating, financing and investing
activities of the Group are segregated. Cash and cash equivalents in the cash flow comprise cash
at bank, cash/ cheques in hand and short-term investments with an original maturity of three
months or less.

y. Government grants

Grants from the Government are recognised when there is reasonable assurance that:

• the Company will comply with the conditions attached to them; and

• the grant will be received.

Government grants related to revenue are recognised on a systematic basis in the statement of
profit and loss over the periods necessary to match them with the related costs which they are
intended to compensate. Such grants are deducted in reporting the related expense. When the
grant relates to an asset, it is recognized as income over the expected useful life of the asset.

Where the Company receives non-monetary grants, the asset is accounted for on the basis of its
acquisition cost. In case a non-monetary asset is given free of cost it is recognised at a fair value.
When loan or similar assistance are provided by the government or related institutions, with an
interest rate below the current applicable market rate, the effect of this favourable interest is
recognized as government grant. The loan or assistance is initially recognized and measured at
fair value and the government grant is measured as the difference between the initial carrying
value of the loan and the proceeds received. A repayment of government grant is accounted for
as a change in accounting estimate. Repayment of grant is recognised by reducing the deferred
income balance, if any and the rest of the amount is charged to statement of profit and loss.

z. Current/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 and advance against current tax 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.

aa. Assets held for sale and disposal groups

Non-current assets held for sale and disposal groups are presented separately in the balance
sheet when the following criteria are met:

- the Company is committed to selling the asset or disposal group;

- the assets are available for sale immediately;

- an active plan of sale has commenced; and

- sale is expected to be completed within 12 months.

Assets held for sale and disposal groups are measured at the lower of their carrying amount and
fair value less cost to sell. Assets held for sale are no longer amortised or depreciated

ab. Borrowing Costs

Borrowing costs consist of interest, ancillary and other costs that the Group incurs in connection
with the borrowing of funds and interest relating to other financial liabilities. Borrowing costs
also include exchange differences to the extent regarded as an adjustment to the borrowing
costs.

Borrowing costs directly attributable to the acquisition, construction or production of an asset
that necessarily takes a substantial period of time to get ready for its intended use or sale are
capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in
which they occur.

ac. Offsetting instruments

Financial assets and liabilities are offset and the net amount reported in the balance sheet when
there is a legally enforceable right to offset the recognised amounts and there is an intention to
settle on a net basis or realise the asset and settle the liability simultaneously. The legally
enforceable right must not be contingent on future events and must be enforceable in the normal
course of business and in the event of default, insolvency or bankruptcy of the Group or the
counterparty.

ad. Events after the reporting period

Adjusting events are events that provide further evidence of conditions that existed at the end of
the reporting period. The financial statements are adjusted for such events before authorisation
for issue.

Non-adjusting events are events that are indicative of conditions that arose after the end of the
reporting period. Non-adjusting events after the reporting date are not accounted, but disclosed,
if material.