B.8 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that the Company 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 the 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, a receivable is recognised as an asset if it is virtually
certain that reimbursements will be received and the amount of the receivable can be
measured reliably.

Contingent liability is disclosed for possible obligations which will be confirmed only by
future events not within the control of the Company or present obligations arising from
past events where it is not probable that an outflow of resources will be required to
settle the obligation or a reliable estimate of the amount of the obligation cannot be
made.

Contingent Assets are not recognized since this may result in the recognition of income
that may never be realized.

B.9 Financial instruments

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 profit or loss.

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 marketplace.

Classification of financial assets

The financial assets are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition of financial assets are added to the fair value of
the financial assets on initial recognition.

After initial recognition:

(i) Financial assets (other than investments) are subsequently measured at amortised
cost using the effective interest method.

Effective interest method is a method of calculating the amortised cost of a debt
instrument and of allocating interest income over the relevant period. The effective
interest rate is the rate that exactly discounts estimated future cash receipts (including
all fees and points paid or received that form an integral part of the effective interest
rate, transaction costs and other premiums or discounts) through the expected life of
the debt instrument, or, where appropriate, a shorter period, to the net carrying
amount on initial recognition.

Investments in debt instruments that meet the following conditions are subsequently
measured at amortised cost:

• The asset is held within a business model whose objective is to hold assets in
order to collect contractual cash flows; and

• the contractual terms of the instrument give rise on specified dates to cash flows
that are solely payments on principal and interest on the principal amount
outstanding.

Income on such debt instruments is recognised in profit or loss and is included in the
"Other Income".

The Company has not designated any debt instruments as fair value through other
comprehensive income.

(ii) Financial assets (i.e. investments in instruments other than equity of subsidiaries)
are subsequently measured at fair value.

Such financial assets are measured at fair value at the end of each reporting period,
with any gains (e.g. any dividend or interest earned on the financial asset) or losses
arising on re-measurement recognised in profit or loss and included in the "Other
Income".

Investments in equity instruments of subsidiaries

The Company measures its investments in equity instruments of subsidiaries at cost in
accordance with Ind AS 27. At transition date, the Company has elected to continue
with the carrying value of such investments measured as per the previous GAAP and
use such carrying value as its deemed cost.

Impairment of financial assets:

A financial asset is regarded as credit impaired when one or more events that may have
a detrimental effect on estimated future cash flows of the asset have occurred. The
Company applies the expected credit loss model for recognising impairment loss on
financial assets (i.e. the shortfall between the contractual cash flows that are due and
all the cash flows (discounted) that the Company expects to receive).

De-recognition of financial assets:

The Company de-recognises a financial asset when the contractual rights to the cash
flows from the asset expire, or when it transfers the financial asset and substantially all
the risks and rewards of ownership of the asset to another party. If the Company
neither transfers nor retains substantially all the risks and rewards of ownership and
continues to control the transferred asset, the Company recognises its retained interest
in the asset and an associated liability for amounts it may have to pay. On de¬
recognition of a financial asset in its entirety, the difference between the asset's
carrying amount and the sum of the consideration received and receivable is recognised
in the Statement of profit and loss.

Financial liabilities and equity instruments

Equity instruments

Equity instruments issued by the Company are classified as equity in accordance with
the substance and the definitions of an equity instrument. An equity instrument is any
contract that evidences a residual interest in the assets of an entity after deducting all
of its liabilities.

Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective
interest method. The carrying amounts of financial liabilities that are subsequently
measured at amortised cost are determined based on the effective interest method.
Interest expense that is not capitalised as part of costs of an asset is included in the
"Finance Costs".

The effective interest method is a method of calculating the amortised cost of a
financial liability and of allocating interest expense over the relevant period. The
effective interest rate is the rate that exactly discounts estimated future cash payments
(including all fees and points paid or received that form an integral part of the effective
interest rate, transaction costs and other premiums or discounts) through the expected
life of the financial liability, or (where appropriate) a shorter period, to the net carrying
amount on initial recognition.

De-recognition of financial liabilities

The Company de-recognises financial liabilities when, and only when, the Company's
obligations are discharged, cancelled or have expired. An exchange between with a
lender of debt instruments with substantially different terms is accounted for as an
extinguishment of the original financial liability and the recognition of a new financial
liability. Similarly, a substantial modification of the terms of an existing financial liability
(whether or not attributable to the financial difficulty of the debtor) is accounted for as
an extinguishment of the original financial liability and the recognition of a new
financial liability. The difference between the carrying amount of the financial liability
derecognised and the consideration paid and payable is recognised in profit or loss.

B. 10 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the year. For the purpose of calculating diluted earnings per share,
the net profit or loss for the year attributable to equity shareholders and the weighted
average number of shares outstanding during the year are adjusted for the effects of all
dilutive potential equity shares.

C. Critical Accounting judgements and key sources of estimation uncertainty

The preparation of financial statements in conformity with Ind AS requires the
Company's Management to make judgments, estimates and assumptions about the
carrying amounts of assets and liabilities recognised in the financial statements that are
not readily apparent from other sources. The judgements, estimates and associated
assumptions are based on historical experience and other factors including estimation
of effects of uncertain future events 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 (accounted on a prospective basis) and recognised in the
period in which the estimate is revised if the revision affects only that period, or in the
period of the revision and future periods of the revision affects both current and future
periods.

The following are the key estimates that have been made by the Management in the
process of applying the accounting policies:

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance
sheet cannot be measured based on quoted prices in active markets, their fair value are
measured using valuation techniques. The inputs to these models are taken from
observable markets where possible, but where this is not feasible, a degree of
judgement is required in establishing fair values. Judgements include considerations of
inputs such as liquidity risk, credit risk and volatility. Changes in assumptions relating to
these factors could affect the reported fair value of financial instruments.

Allowance for doubtful trade receivables

Trade receivables do not carry any interest and are stated at their nominal value as
reduced by appropriate allowances for estimated irrecoverable amounts.

Estimated irrecoverable amounts are derived based on a provision matrix which takes
into account various factors such as customer specific risks, geographical region,
product type, currency fluctuation risk, repatriation policy of the country, country
specific economic risks, customer rating, and type of customer, etc.

Individual trade receivables are written off when the management deems them not to
be collectable.

Note 3.2 : Capital Management

For the purpose of the company's capital management, capital includes issued equity capital and all other equity reserves attributable
to the equity holders of the Company. The primary objectives of the Company's capital managmement is to ensure that it maintains a
strong credit rating and healthy capital ratios in order to support its business and maximise return to stakeholders through the
optimisation of the debt and equity balance.

The Company determines the amount of capital required on the basis of annual planning and budgeting and corporate plan for
working capital, capital outlay and longterm product and strategic involvements. The funding requirements are met through internal
accruals and a combination of both long-term and short-term borrowings.

Note 3.3 : Financial Risk Management

In course of its business, the Company is exposed to certain financial risks that could have significant influence on the Company's
business and operational/ financial performance. These include market risk (including currency risk, interest rate risk and price risk),
credit risk and liquidity risk.

The Board of Directors reviews and approves risk management framework and policies for managing these risks and monitors suitable
mitigating actions taken by the management to minimise potential adverse effects and achieve greater predictability to earnings. In
line with the overall risk management framework and policies, the management monitors and manages risk exposure through an
analysis of degree and magnitude of risks.

(i) Market Risk

Market risk is the risk that changes in market prices, liquidity and other factors that could have an adverse effect on realizable fair
values or future cash flows to the Company. The Company's activities expose it primarily to the financial risks of changes in foreign
currency exchange rates and interest rates as future specific market changes cannot be normally predicted with reasonable accuracy.

(a) Foreign Currency Risk Management:

The Company undertakes transactions denominated in foreign currencies and thus it is exposed to exchange rate fluctuations. The
Company actively manages its currency rate exposures, arising from transactions entered and denominated in foreign currencies, and
uses derivative instruments such as foreign currency forward contracts to mitigate the risks from such exposures. The company does
not use derivative instruments to hedge risk exposure.

(b) Interest Rate Risk Management:

The Company is exposed to interest rate risk pertaining to funds borrowed at both fixed and floating interest rates. The Company's
risk management activities are subject to management, direction and control under the framework of risk management policy of
interest rate risk. The management ensures risk governance framework for the company through appropriate policies and procedures
and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives.

For the company's total borrowings, the analysis is prepared assuming that amount of the liability outstanding at the end of the

(ii) Credit Risk

Credit risk refers to the risk that a counterparty or customer will default on its obligation resulting in a loss to the company. Financial
instruments that are subject to credit credit risk principally consist of Loans, Trade and Other Receivables, Cash and Cash Equivalents,
Investments and Other Financial Assets.

Credit risk encompasses both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of
risk. The Company's exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of
transactions concluded is spread amongst approved counterparties.

Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. The Company
evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and
operate in independent markets. Ongoing credit evaluation is performed on the financial condition of accounts receivable and, where
appropriate. The average credit period are generally in the range of 14 days to 90 days. Credit limits are established for all customers
based on internal rating criteria.

(iii) Liquidity Risk

The Company monitors its risk of shortage of funds through using a liquidity planning process that encompasses an analysis of
projected cash inflow and outflow.

The Company's objective is to maintain a balance between continuity of funding and flexibility largely through cash flow generation
from its operating activities and the use of bank loans. The Company assessed the concentration of risk with respect to refinancing its
debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding.

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or

- provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

f) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any
other relevant provisions of the Income tax Act, 1961.

g) The Company has not traded or invested in crypto currency or virtual currency during the year under review.

h) There are no charges or satisfaction which are yet to be registered with Registrar of Companies beyond the statutory period.

i) The Company has no transactions with the Companies struck off under section 248 of the Companies Act, 2013 or section 560
of the Companies Act, 1956.