(n) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized
when the Company has a present obligation (legal or constructive) as a result of a 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.

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
recognized as a finance cost.

Contingent liabilities are not recognized but are disclosed in notes.

Contingent assets are neither recognised nor disclosed in the financial statements,

(o) Segment Reporting

The accounting policies adopted by the company for segment reporting are in line with
the Ind AS 108.

Business Segment: The Company's operating business is engineering goods only and
accordingly there is only one business segment.

Currency Segment: The analysis of currency segment is based on the basis of currency.

The currency segments considered for disclosure are as follows:

(a) Sales in Indian Currency ___

(b) Sales in foreign currency Tffy'N

Segment Assets denotes for assets in Local Currency and in foreign currenc^S'''" \

(p) Earning Per Share

Basic earning per share is 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.

For the purpose of calculating diluted Earning 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 effects of all dilutive potential Equity
Shares.

(q) Financial Instruments

(i) Financial Assets

A. Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs
that are directly attributable to the acquisition or issue of financial assets and financial
liabilities, which are not at fair value through profit or loss, are adjusted to the fair value
on initial recognition. Purchase and sale of financial assets are recognised using trade
date accounting.

B. Subsequent measurement

(i) Financial assets carried at amortised cost (AC)

A financial asset is measured at amortised cost if it is held within a business model
whose objective is to hold the asset 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.

(ii) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI 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.

(iii) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are measured at
FVTPL

C. Investment in subsidiaries, Associates and Joint Ventures

The Company has accounted for its investments in subsidiaries, associates and joint
venture at cost, if any.

D. Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised
in Statement of Profit and Loss, except for those equity investments fof-wtych the
Company has elected to present the value changes in 'Other Comprehensive^OT&

E. Impairment of financial assets

In accordance with Ind AS 109, the Company evaluate impairment of financial assets at
fair value through profit and loss (FVTPL).

(ii) Financial liabilities

A. Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly
attributable cost. Fees of recurring nature are directly recognised in the Statement of
Profit and Loss as finance cost.

B. Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For
trade and other payable maturing within one year from the balance sheet date, the
carrying amounts approximate fair value due to the short maturity of these
instruments.

(iii) Derivative and Financial Instrument and Hedge Accounting

The Company uses derivative financial instruments such as currency swaps and
forwards contracts to mitigate the risk of changes in exchange rates. Such derivative
financial instruments are initially recognised at fair value on the date on which a
derivative contract is entered into and are also subsequently measured at fair value.
Derivatives are carried as financial assets when the fair value is positive and as financial
liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are taken
directly to Statement of Profit and Loss, except for the effective portion of cash flow
hedges which is recognised in Other Comprehensive Income and later to Statement of
Profit and Loss when the hedged item affects profit or loss or treated as basis
adjustment if a hedged forecast transaction subsequently results in the recognition of a
non-financial assets or non-financial liability.

Hedges that meet the criteria for hedge accounting are accounted for as follows:

a) Cash flow hedge

The Company designates derivative contracts or non derivative financial assets /
liabilities as hedging instruments to mitigate the risk of movement in foreign exchange
rates for foreign exchange exposure on highly probable future cash flows attributable to
a recognised asset or liability or forecast cash transactions. When a derivative is
designated as a cash flow hedging instrument, the effective portion of changes in the
fair value of the derivative is recognized in the cash flow hedging reserve being^lfycf
other comprehensive income. Any ineffective portion of changes in the fair value~o?Tft>e
derivative is recognized immediately in the Statement of Profit and Loss! If the hedging
relationship no longer meets the criteria for hedge accounting, then hedge accounting is
discontinued prospectively. If the hedging instrument expires or is sold, terminated or
exercised, the cumulative gain or loss on the hedging instrument recognized in cash
flow hedging reserve till the period the hedge was effective remains in cash flow
hedging reserve until the underlying transaction occurs. The cumulative gain or loss
previously recognized in the cash flow hedging reserve is transferred to the Statement
of Profit and Loss upon the occurrence of the underlying transaction. If the forecasted
transaction is no longer expected to occur, then the amount accumulated in cash flow
hedging reserve is reclassified in the Statement of Profit and Loss.

b) Fair Value Hedge

The Company designates derivative contracts or non derivative financial assets /
liabilities as hedging instruments to mitigate the risk of change in fair value of hedged
item due to movement in foreign exchange rates.

Changes in the fair value of hedging instruments and hedged items that are designated
and qualify as fair value hedges are recorded in the Statement of Profit and Loss. If the
hedging relationship no longer meets the criteria for hedge accounting, the adjustment
to the carrying amount of a hedged item for which the effective interest method is used
and is amortised to Statement of Profit and Loss over the period of maturity.

(r) Government Grants:

Government grants with a condition to purchase, construct or otherwise acquire long¬
term assets are initially measured based on grant receivable under the scheme. Such
grants are recognised in the Statement of Profit and Loss on a systematic basis over the
useful life of the asset. Amount of benefits receivable in excess of grant income accrued
based on usage of the assets is accounted as Government grant received in advance.
Changes in estimates are recognised prospectively over the remaining life of the assets.
The company has option to present the government grant related to fixed assets by
deducting the grant from the carrying value of the asset and to present the non¬
monetary grant at a nominal amount. The company has not availed this option in
current financial year. Grants from the government are recognised at their fair value
where there is a reasonable assurance that the grant will be received and the company
will comply with all attached condition.

(s) Current versus non-current classification

The Company presents assets and liabilities in balance sheet based on current/non-
current classification.

The Company has presented non-current assets and current assets before equity, non¬
current liabilities and current liabilities in accordance with Schedule III, Division II of
Companies Act, 2013 notified by MCA.

(i) An asset is classified _

as current when it is: X

a) Expected to be realised or intended to be sold or consumed in'nofmafo^«ting

b) Held primarily for the purpose of trading,

c) Expected to be realised within twelve months after the reporting period, or

d) 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.

(ii) A liability is classified

as current when it is:

a) Expected to be settled in normal operating cycle.

b) Held primarily for the purpose of trading,

c} Due to be settled within twelve months after the reporting period, or

d) There is no unconditional right to defer the settlement of the liability for at least

twelve months after the reporting period.

All other liabilities are classified as non-current. The operating cycle is the time between
the acquisition of assets for processing and their realisation in cash or cash equivalents

The preparation of company's financial statements in conformity with Ind AS require
management to make judgments, estimates and assumptions to be made that affect the
reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the
financial statements and the reported amount of revenues and expenses during the reporting
period. Uncertainty about these assumptions and estimates could result in outcomes that
require material adjustments to the carrying value of the assets or liabilities affected in future
period. Difference between the actual results and estimates are recognized in the period in
which the results are known/materialized. The management believes that the estimates used in
the preparation of the financial statements are prudent and reasonable.

3.1 Depreciation / Amortisation and useful lives of Property, Plant and Equipment /
Intangible Assets

Tangible Assets

Depreciation on Property, Plant and Equipment is provided on useful life of the assets
which is taken as specified in Schedule II to the Companies Act, 2013 and depreciation is
charged on Written Down Value method after taking into residual value of the assets in
order to determine the amount of depreciation / amortization to be recorded during
reporting period.

Intangible Assets

The intangible asset is amortized over a period of estimated useful life of asset, taking
into account of anticipated technological changes. The depreciation / amortization for
the future period is revised if there are Material changes from previous estimates.

3.2 Recoverability of trade receivable and advances

Judgements are required in assessing the recoverability of overdue trade regsivpbtes
and advances and determining whether a provision against those receivabl6&4i£*y \
required. Factors considered include the credit rating of the counterparty, the amount\C^

and timing of anticipated future payments and any possible actions that can be taken to
mitigate the risk of non-payment.

3.3 Provisions

Provisions and liabilities are recognized in the period when it becomes probable that
there will be a future outflow of funds resulting from past operations or events and the
amount of cash outflow can be reliably estimated. The timing of recognition and
quantification of the liability requires the application of judgement to existing facts and
circumstances, which can be subject to change. The carrying amounts of provisions and
liabilities are reviewed regularly and revised to take account of changing facts and
circumstances.

3.4 Income taxes

Management judgment is required for the calculation of provision for income taxes and
deferred tax assets and liabilities. The Company reviews at each balance sheet date the
carrying amount of deferred tax assets. The factors used in estimates may differ from
actual outcome which could lead to Material adjustment to the amounts reported in
the standalone financial statements.

3.5 Contingencies

Management judgement is required for estimating the possible outflow of resources, if
any, in respect of contingencies/ claim/litigations against the Company as it is not
possible to predict the outcome of pending matters with accuracy.