2.10.Provision and Contingencies

made.

the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date ana a )
current best estimates.

liabilities are not recognised but are disclosed in the notes.

enterprise. Contingent assets are neither recognised nor disclosed in the financial statements.

2.11. Foreign Currency Transactions and Balances

Transactions in foreign currency are translated into the respective functional currencies using the exchange rates
prevailing at the dates of the respective transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at the exchange rates prevailing at reporting date of
monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Profit and
Loss and reported within foreign exchange gains/ (losses).

2.12.Investments in Subsidiaries and Associates

Investments in subsidiaries and associates are measured at cost. Dividend income if any from subsidiaries and
associates is recognised when its right to receive the dividend is established.

2.13.Financial Instruments

A

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual
provisions of the instruments. All financial instruments are recognised initially at fair value.

2.14.Financial Assets

Financial assets are classified into the following specified categories: financial assets "at amortised cost , fair
value through other comprehensive income", "fair value through Profit or Loss" The classification depends on
the entity's business model for managing the financial assets and the contractual cash flow characteristics of the
financial asset at the time of initial recognition.

Financial assets are recognised by the Company as per its business model. 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 cost that are attributable to the acquisition of the Financial Asset. However, trade receivables that do
not contain a significant financing component are measured at transaction price Transaction costs directly
attributable to the acquisition of financial assets measured at fair value through profit or loss are recognised
immediately in the Statement of Profit and Loss.

All equity instruments are measured at fair value other than investments in unquoted equity shares including
investment in subsidiaries and associates. Equity instruments held for trading is classified as FVTPL. For all other
equity instruments, the Company may make an irrevocable election to present subsequent changes in the fair
value in CO. The Company makes such election on an instrument-by-instrument basis.

Income and expense is recognised on an effective interest basis for debt instrument. All other investments are
classified as Fair Value Through Profit or Loss (FVTPL). 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.

Impairment of Financial Assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL model for measurement and
recognition of impairment loss. Financial assets are assessed for indicators of impairment at the end of each
reporting period. Financial assets are impaired where there is objective evidence that, as a result of one or more
events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the
investment have been impacted.

Objective evidence of impairment could include -

• Significant financial difficulty of the users or counterparty; or

• Default or delinquency in interest or principal payments; or

• It becoming probable that the borrower will enter
Note 11: Ot bankruptcy or financial reorganisation.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with
Expected Credit Losses on Trade Receivables

Employee Benefits

Defined employee benefit assets / liabilities to be determined based on the present value of future obligations
using assumptions as determine by the Company with advice from an independent qualified actuary.

2.19. Operating cycle

Based on the activities of the Company and the normal time between acquisition of assets and their realisation in
cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of
classification of its assets and liabilities as current and non-current.