Significant Accounting Policies

1. Basis of Preparation
Compliance with Ind AS

These standalone financial statements have been prepared in accordance with the Indian
Accounting Standards (hereinafter referred to as the 'Ind AS') as notified by Ministry of
Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 ('Act') read with of the
Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant
provisions of the Act.

The accounting policies are applied consistently to all the periods presented in the financial
statements, including the preparation of the opening Ind AS Balance Sheet as at 1st April,
2020 being the date of transition to Ind AS.

Historical cost convention

The financial statements have been prepared on a historical cost except for certain financial
assets and liabilities that are measured at fair value at the end of each reporting period.

Current non-current classification

All assets and liabilities have been classified as current or non-current as per the Company's
normal operating cycle (twelve months) and other criteria set out in the Schedule III to the Act.

Based on the nature of services rendered to customers and time elapsed between
deployment of resources and the realization in cash and cash equivalents of the consideration
for such services rendered, the Company has considered an operating cycle of twelve months.

Rounding of Amounts

All amounts disclosed in the financial statements and notes have been rounded off to the
nearest Lakhs as per the requirement of Schedule III, unless otherwise stated. While preparing
the financial statements where amounts have been rounded off in rupees lakhs, value 0.00
represents value less than 1,000.

2. Property, Plant and Equipment

The Company has applied for the one time transition exemption of considering the carrying
cost on the transition date i.e. April 1,2020 as the deemed cost under Ind AS. Hence regarded
thereafter as historical cost.

All other items of Property, Plant and Equipment are stated at cost less accumulated
depreciation and accumulated impairment losses, if any. Historical cost includes expenditure
that is directly attributable to the acquisition of the items and to bring the asset to its working
condition for its intended use.

Subsequent costs are included in the asset's carrying amount or recognized as a separate
asset, as appropriate, only when it is probable that future economic benefits associated with
the item will flow to the Company and the cost of the item can be measured reliably.

The company identifies and determines cost of each component/part of the plant and
equipment separately, if the component/part has a cost which is significant to the total cost of
the plant and equipment and has useful life that is materially different from that of the
remaining plant and equipment.

Gains or losses arising from derecognition of tangible property, plant and equipment are
measured as the difference between the net disposal proceeds and the carrying amount of
the asset and are recognized in the Statement of Profit and loss when the asset is
derecognized.

Depreciation is provided on assets to get the initial cost down to the residual value.
Depreciation in respect of Property, Plant and Equipment is provided on straight line basis
over the estimated useful life of the asset in accordance with Schedule II of Companies Act
2013 or based on the technical evaluation of the asset. The charge in respect of periodic
depreciation is derived after determining an estimate of an asset's expected useful life and the
expected residual value at the end of its life. Cost incurred on assets under development are
disclosed under capital work-in-progress and not depreciated till asset is ready to use. The
residual values and useful lives for depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate. An asset's
carrying amount is written down immediately to its recoverable amount if the asset's carrying
amount is greater than its estimated recoverable amount. Recoverable amount is higher of
value in use or exchange. Gains and losses on disposals are determined by comparing the
sale proceeds with the carrying amount and are recognized in the statement of profit and loss.
Estimated useful lives of items of property, plant and equipment are as follows:

3.Leases

The Company as a lessee

The Company assesses whether a contract contains a lease, at the inception of a contract. A
contract is, or contains, a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration. To assess whether a
contract conveys the right to control the use of an identified asset, the Company assesses
whether:

1. The contract involves the use of an identified asset

2. The Company has substantially all of the economic benefits from use of the asset through
the period of the lease and

3. The Company has the right to direct the use of the asset.

At the date of commencement of lease, the company has assessed the lease to be of low
value and for a term of less than 12 months. For these short-term and low value leases, the
Company recognizes the lease payments as an operating expense on a straight-line basis
over the term of the lease.

4. 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

4.1. 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, 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 recognized using trade date accounting.

4.2. Investments in Subsidiaries

Investments in Subsidiaries are carried at cost less accumulated impairment losses, if any.
Subsequent measurement

4.2.1.1. Financial assets carried at amortized cost (AC)

A financial asset is measured at amortized 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.

4.2.1.2. 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. Fair value
movements are recognized in the other comprehensive income (OCI). When the financial
asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified
from the equity to the Statement of Profit and Loss.

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

A financial asset, which is not classified in any of the above categories, is measured through
FVTPL.

4.2.2. Equity Instruments

All equity investments are measured at fair values. The Company may irrevocably elect to

measure the same either at FVTOCI or FVTPL on initial recognition. The Company makes such
election on an instrument-by-instrument basis. The fair value changes on the investment are
recognized in OCI or reclassified to retained earnings on sale of such investments. Dividend
income on the investments in equity instruments are recognized in the Statement of Profit and
Loss.

4.2.3. Impairment of financial assets

In accordance with Ind AS 109, the Company uses 'Expected Credit Loss' (ECL) model, for
evaluating impairment of financial assets other than those measured at fair value through
profit and loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

The 12-months expected credit losses (expected credit losses that result from those default
events on the financial instrument that are possible within 12 months after the reporting date);
or

Full lifetime expected credit losses (expected credit losses that result from all possible default
events over the life of the financial instrument)

For Trade Receivables Company applies 'simplified approach' which requires expected
lifetime losses to be recognized from initial recognition of the receivables. The Company uses
historical default rates to determine impairment loss on the portfolio of trade receivables. At
every reporting date these historical default rates are reviewed and changes in the forward
looking estimates are analyzed.

For other assets, the Company uses 12-month ECL to provide for impairment loss where there
is no significant increase in credit risk. If there is significant increase in credit risk full lifetime
ECL is used.

The impairment provisions for financial assets are based on assumptions about risk of defaults
and expected cash loss rates. The company uses judgments in making these assumptions and
selecting the inputs to the impairment calculation, based on companies past history, existing
market conditions as well as forward looking estimates at the end of each reporting period.

4.3. Financial Liabilities

4.3.1. 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 recognized in the Statement of Profit
and Loss as finance cost.

4.3.2. Subsequent measurement

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

4.4. De-recognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows
from the financial asset expire or it transfers the financial asset and the transfer qualifies for
derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is
derecognized from the Company's Balance Sheet when the obligation specified in the
contract is discharged or cancelled or expires.

5. Segment Reporting:

Operating segments are reported in a manner consistent with the internal reporting provided
to the chief operating decision maker.

6. Finance costs

Interest and other borrowing costs attributable to qualifying assets are capitalized. Other
interest and borrowing costs are charged to Statement of Profit and Loss.