k) Provisions:

Provisions are recognised when There is a present legal or constructive obligation that can be
' estimated reliably, as a result of a past event, when 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. Provisions are not recognised for future operating
losses.

Any reimbursement that the Company can be virtually certain to collect from a third party with
respect to the obligation is recognised as a separate asset. However this asset may not exceed
the amount of the related provisions,

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate,
^II it is no ionger probable that an outflow of economic resources will be required to settle the
obligation, the provisions are reversed. Where the effect of the time of money is material,
provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks
specific to the liability. When discounting is used, the increase in the previsions due to the
passage of time is recognised as a finance cost,

1} Contingencies:

Where it is not probable that an inflow or an outflow of economic resources will be required, or
the amount cannot be estimated reliably, the asset or the obligation is not recognised in the
statement of balance sheet and is disclosed as a contingent asset or contingent liability. Possible
outcomes on obligations/rights, whose existence will only be confirmed by the occurrence or
non-occurrence of one or more future events are also disclosed as contingent assets or
contingent liabilities.

m) Taxes on Income:

Tax expense comprises of current and deferred tax. Current income tax is measured at the
amount expected to be paid to the tax authorities In accordance with the Income Tax Act, 1961.
Current tax includes taxes to be paid on the profit earned during the year and for the prior
periods.

Deferred income taxes are provided based on the balance sheet approach considering the
temporary differences between the tax bases of assets and liabilities and their carrying amounts
for financial reporting purposes at the reporting date.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively
enacted at the balance sheet date. Deferred tax assets are recognised only to the extent that
there is reasonable certainty that sufficient future taxable income wili be available against which
such deferred tax assets can bo realised.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The
company writes off the carrying amount of a deferred tax asset to the extent that it is no longer
probable that sufficient future taxable income wiil be available against which deferred tax asset
can be realized. Any such write-off is reversed to the extent that it becomes reasonably certain
that sufficient future taxable income will be available.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set
off current tax assets against current tax liabilities and the deferred taxes relate to the same
taxable entity and the same taxation authority.

n} Prior period items:

In case prior period adjustments are material in nature the company prepares restated financial
statement as required under Ind AS 3 - "Accounting Policies, Changes in Accounting Fstimates
and Errors¹'. In case of immaterial items pertaining to prior periods ^nwn under respective items
in the Statement of Profit and Loss. yf' u-u

o) Cash and cash equivalents;

Cash and cash equivalents include cash on hand and at bank, deposits held at call with banks,
other short-term highly liquid investment with original maturities of three months or less that
are realty convertible to a known amount of cash which are subject to an insignificant risk of
changes in value and are held for meeting short-term cash commitments.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and
short-term deposits, as defined above, net of outstanding hank overdrafts as they are considered
an integral part of the Company's cash management.

p) Segment Reporting:

Identification of Segments:

The company's operating business is 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 cm the areas in which major operating divisions of the company operate. Operating
Segments are reported in a manner consistent with internal reporting provided to the Executive
Manager/ Chief Operating Decision Maker (CODM),

The Board of Directors of the company has identified Managing Director as the CODM,

Allocation of Common Costs:

Common allocable costs are allocated to each segment according to relative contribution of each
segment to the total common costs.

Unallocated Items:

The corporate and other segment includes general corporate income and expense items which
are not allocated to any business segment.

q) 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;

a. Initial recognition and measurement:

AH 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. Transaction costs of financial assets carried at fair value
' through profit or loss are expensed in the statement of profit or loss. Purchases or sales of

financial assets that require delivery of assets within a time frame established by regulation
or convention in the marketplace (regular way trades) are recognised on the trade date, i.e.,
the date that the company commits to purchase or sell the asset.

b. Subsequent measurement:

For the purpose of subsequent measurement,, financial assets are classified in to following
categories

a. Debt instruments at amortised cost

b_ Debt Instruments at fair value through profit and lossfFVTPL)

c. Equity instruments at fair value through profit and Ioss(FVTFL)

a. Debts Instruments at amortised cost:

A 'Debt Instrument' is measured at the amortised cost if both the following
conditions are met:

L The asset is held within a business model whose objective is to hold assets
for collecting contractual cash flows, and

ii. Contractual terms of the asset give rise on specified dates to cash flows that
are solely payments of principal and interest (SPPI) on the principal amount
outstanding.

After initial measurement, such financial assets are subsequently 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. The EIR amortisation
is included in other income in the profit or loss. The losses arising from
impairment are recognised in the profit or loss.

b. Debt Instruments at Fair value through profit and loss (FVTPL):

As per the Ind AS 101 and Ind AS 109, the Company is permitted to designate the
previously recognised financial asset at initial recognition irrevocably at fair value
through profit and loss on the basis of fact and circumstances that exists on the
date of transition to ind AS. Debt instruments included within the FVTPL category
are measured at fair value with all changes recognised in the statement of Profit
and Loss.

c. Equity instruments at fair value through profit and loss (l-VTPL):

Equity instruments in the scope of Ind AS 109 are measured at fair value. The
classification is made cm initial recognition and is irrevocable. Subsequent
changes in the fair values at each reporting date are recognised in the Statement
' of Profit and Loss.

c. De recognition;

A financial asset or where applicable, a part of a financial asset is primarily
derecognised when:

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

b. The company has transferred Its rights to receive cash flows from the asset or has
assumed an obligation to pay (he received cash flows in full without material
delay to a third party under a 'pass-through' arrangement; and either (a) the
Company has transferred substantially all the risks and rewards of the asset, or
(b) the company has neither transferred nor retained substantially all the risks
and rewards of the asset but has transferred control of the asset.

When the company has transferred its rights to receive cash flows from an asset or
has entered into a pass-through arrangement, it evaluates, if and to what extent it has
retained the risks and rewards of ownership. When it has neither transferred nor
retained substantially all the risks and rewards of the asset, nor transferred control of
the asset, the company continues to recognise the transferred asset to the extent of
the company's continuing involvement.In that case, the company also recognises an
associated liability. The transferred asset and the associated liability are measured on
a basis that reflects the rights and obligations that the company has retained.

d. Impairment of financial assets;

In accordance with Ind AS 109, the Company applies the expected credit loss (ECL)
model for measurement and recognition of impairment loss on financial instruments.

Expected credit loss 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.

The management uses a provision matrix to determine the impairment loss on the
portfolio of trade and other receivables. Provision matrix is based on its historically
observed expected credit loss rates over the expected life of the trade receivables and
is adjusted for forwa rd looking estimates.

' The expected credit loss allowance or reversal recognised during the period is
" recognised as income or expense, as the case may be, in the statement of profit and
loss. In case of balance sheet, it is shown as an adjustment from the specific financial
asset

Financial liabilities:

a. Initial recognition and measurement;

At initial recognition, all financial liabilities are recognised at fair value and in the case
of loans, borrowings and payables, net of directly attributable transaction costs.

b. Subsequent measurement:

i. 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. Gains or losses on liabilities held for trading are
recognised in the profit or loss. The company does not designate any financial
liability at fair value through profit or loss.

ff. Financial liabilities at amortised cost:

Amortised cost, in the case of financial liabilities with maturity more than one
year, is calculated by discounting the future cash flows with an effective interest
rate. Effective interest rate amortisation is included as finance costs in the
statement of profit and loss. Financial liability with maturity of less than one year
is shown at transaction value.

c. Derecognition:

Financial liability is derecognised when the obligation under the liability is discharged
or cancelled or expires. The difference between the carrying amount of a financial
liability that has been extinguished or transferred to another party and the
consideration paid, including any non-cash assets transferred gt liabilities assumed, is
recognised in profit or loss as other income or finance costs.

Reclassification:

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. 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 does not restate any previously recognised gains, losses (Including impairment
gains or losses} or interest.

r} 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 soli the asset or transfer the
liability takes plate either

* in the principal market for such asset or liability, or

* in the absence of a principal market, in the most advantageous market which is
accessible to 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 categorized 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:

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

liabilities. .

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

c. 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 recurring basis, the
Company -determines whether transfers have occurred between levels in the hierarchy by re
assessing the categorization (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.