2 MATERIAL ACCOUNTING POLICIES:

This note provides a list of the material accounting
policies adopted in the preparation of these
financial statements. These policies have been
consistently applied to all the years presented, unless
otherwise stated

2.1 Basis of preparation of financial statements

(i) Compliance with IND AS

The Standalone financial statements have been
prepared in accordance with Indian Accounting
Standards (Ind AS) as per the Companies (Indian
Accounting Standards) Rules, 2015 notified under
Section 133 of Companies Act, 2013, (the 'Act')
and [Companies (Indian Accounting Standards)
Rules, 2015] and other relevant provisions of the
Act and read with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 as amended
and Companies (Indian Accounting Standards)
Amendment Rules, 2016 and relevant amendment
rules issued thereafter.

Accordingly, the Company has prepared these
Standalone Financial Statements which comprise
the Balance Sheet as at 31 March, 2025, the
Statement of Profit and Loss for the year ended
31 March 2025, the Statement of Cash Flows for
the year ended 31 March 2025 and the Statement
of Changes in Equity for the year ended as on
that date, and accounting policies and other

explanatory information (together hereinafter
referred to as 'Standalone Financial Statements'
or 'financial statements').

(ii) Basis of preparation

The financial statements have been prepared
on a historical cost basis, except for the
following items:

• certain financial assets and liabilities
(including derivative instruments) that are
measured at fair value;

• net defined benefit (asset)/ liability - present
value defined benefit obligations less fair
value of plan assets.

(iii) Functional and presentation currency

These financial statements are presented in Indian
Rupees, which is also the Company's functional
currency. All amounts have been rounded off
to the nearest Lakh except share data, unless
otherwise indicated.

2.2 Revenue recognition:

Revenue towards satisfaction of a performance
obligation is measured at the amount of transaction
price (net of variable consideration) allocated to
that performance obligation. Revenue is reduced
for estimated customer returns, rebates and other
similar allowances.

The Company applies the five-step approach for
recognition of revenue:

• Identification of contract(s) with customers;

• Identification of the separate performance
obligations in the contract;

• Determination of transaction price;

• Allocation of transaction price to the separate
performance obligations; and

• Recognition of revenue when (or as) each
performance obligation is satisfied.

The company generates revenue principally from -
Sale of goods:

The Company recognizes revenue when 'control' of the
promised goods underlying the particular performance

obligation is transferred to the customer in an amount
that reflects the consideration it expects to receive
in exchange for those goods. Control of products
passes to the customers, at a point in time which is
usually upon delivery of goods to the customer /
carrier. Revenue is recognized at that point in time.
Revenue excludes taxes collected from customers on
behalf of the government.

For contracts that permit the customer to return an
item, under Ind AS 115 revenue is recognized to the
extent that it is probable that a significant reversal in
the amount of cumulative revenue recognized will not
occur. Therefore, the amount of revenue recognized
is adjusted for expected returns, which are estimated
based on the historical data. Returned goods are
exchanged only for new goods - i.e. no cash refunds are
offered. In such circumstances, a refund liability, and a
right to recover returned goods asset are recognized.
The amount disclosed as revenue is net of Goods and
Services Tax collected on behalf of third parties.

Sale of tools:

Tooling contracts are the fixed price contracts to
build a specific tool (asset). Under these contracts
a performance obligation is satisfied when
control of such assets underlying the particular
performance obligation is transferred to the customer.
Hence, revenue from tooling contracts is recognized
when such tools are transferred to the customers since
the customer receives and consumes the benefits at
the end of the contract.

Generally, the Company receives short-term tooling
advances from its customers which are utilized for
providing advance to supplier of the tool. Using the
practical expedient in Ind AS 115, the Company does
not adjust the promised amount of consideration for
the effects of any significant financing component.

Sale of Services:

In contracts involving the rendering of services, revenue
is measured using the proportionate completion
method and are recognized net of goods and service
tax as applicable.

Other Income
Interest:

Interest Income from a financial asset is recognized
when it is probable that the economic benefits will
flow to the Company and the amount of income can be
measured reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding and at
the effective interest rate applicable.

Dividend income: Dividend income is recognized when
the Company's right to receive is established by the
reporting date.

Contract liabilities:

A contract liability is the obligation to transfer goods
or services to a customer for which the Company has
received consideration (or an amount of consideration
is due) from the customer. If a customer pays
consideration before the Company transfers goods
or services to the customer, a contract liability is
recognized when the payment is made or the payment
is due (whichever is earlier). Contract liabilities are
recognized as revenue when the Company performs
under the contract.

2.3 Current and Non-current classification

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

An asset is treated as current when it is:

• Expected to be realized or intended to be sold or
consumed in normal operating cycle.

• Held primarily for the purpose of trading.

• Expected to be realized within twelve months
after the reporting period, or

• 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.

A liability is current when:

• It is expected to be settled in normal
operating cycle.

• It is held primarily for the purpose of trading.

• It is due to be settled in twelve months after the
reporting period, or

• The company does not have an unconditional
right to defer the settlement of the liability for at
least twelve months after the reporting period.
Terms of the liability that could, at the option of
the counterparty, results in its settlement by the
issue of equity instruments do not affects its
classification.

The company classifies all other liabilities
as non-current.

Deferred tax assets and liabilities are classified as
non-current assets and liabilities respectively.

The operating cycle is the time between the acquisition
of assets for processing and their realization in cash
and cash equivalents. The company has identified
twelve months as its normal operating cycle.

2.4 Foreign currency transactions and translation:

Foreign currency transactions are translated into the
functional currency using the exchange rates prevailing
as at the respective dates of the transactions.

Monetary assets and liabilities denominated in foreign
currencies are translated into the functional currency
at the closing exchange rate prevailing as at the
reporting date.

Non-monetary assets and liabilities denominated in
a foreign currency are translated using the exchange
rate prevalent, at the date of initial recognition (in case
measured at historical cost) or at the date when the fair
value is determined (in case measured at fair value).

Foreign exchange gains and losses resulting from the
settlement of such transaction and from translation of
monetary assets and liabilities denominated foreign
currencies at year end exchange rates are generally
recognized in profit and loss. Foreign exchange
difference regarded as an adjustment to borrowing
cost are presented in the statement of profit and loss,
within finance costs.

All other foreign exchange gains and losses are
presented in the statement of profit and loss on net
basis within other income / other expenses.

2.5 Fair Value Measurement

The Company measures financial instruments at fair
value on initial recognition.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 sell the asset or transfer the liability
takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most
advantageous market for the asset or liability

The principal or the most advantageous market must
be accessible by 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,

maximizing the use of relevant observable inputs and
minimizing 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:

• Level 1 - Quoted (unadjusted) market prices in
active markets for identical assets or liabilities

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

• 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 a recurring basis, the Company
determines whether transfers have occurred between
levels in the hierarchy by re-assessing 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.

External valuers are involved for valuation of significant
assets, such as properties and unquoted financial
assets. Involvement of external valuers is decided
upon annually by the management. Selection criteria
include market knowledge, reputation, independence
and whether professional standards are maintained.
The management decides, after discussions with
the Company's external valuers, which valuation
techniques and inputs to use for each case.

For the purpose of fair value disclosures, the Company
has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the
asset or liability and the level of the fair value hierarchy
as explained above

Determination of Fair value:

1. Financial Assets- At Amortized cost

The fair values of all financial instruments carried
at amortised cost are not materially different
from their carrying amounts since they are either

short-term in nature or the interest rates applicable
are equal to the current market rate of interest.

2. Financial Assets- At fair value through Profit and
Loss

Financial assets are measured at fair value
through profit or loss unless it is measured at
amortised cost or at fair value through other
comprehensive income on initial recognition.
The transaction costs directly attributable to the
acquisition of financial assets and liabilities at
fair value through profit or loss are immediately
recognised in profit or loss.

3. Financial Liabilities

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit & loss, loans and borrowings,
payables, or as derivatives designated as hedging
instruments in an effective hedge, as appropriate.

All financial liabilities are recognized initially at fair
value and, in the case of loans and borrowings and
payables, net of directly attributable transaction
costs. The Companies financial liabilities include
trade and other payables, loans and borrowings
including bank overdrafts.

Loans and Borrowings

After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortized
cost using the Effective interest method (EIR) method.
Gains and losses are recognized in profit or loss when
the liabilities are derecognized as well as through
the EIR amortization process. The EIR amortization
is included as finance costs in the statement of
profit and loss.

2.6 Property, plant and equipment:

Freehold land is carried at historical cost. All other
items of property, plant and equipment are stated
at historical cost less depreciation less impairment
loss, if any. Historical cost comprises of purchase
price, including non-refundable purchase taxes, after
deducting trade discounts and rebates, any directly
attributable cost of bringing the item to its working
condition for its intended use and direct overheads for

self-constructed assets and other direct costs incurred
up to the date the asset is ready 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 carrying amount of any component
accounted for as a separate asset is derecognized
when replaced. All other repairs and maintenance are
charged to profit or loss during the reporting period in
which they are incurred.

Depreciation methods, estimated useful lives and
residual value:

Depreciation is provided on a pro-rata basis on the
straight line method over the estimated useful life
of the assets as prescribed in Schedule II to the
Companies Act, 2013

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.

Gains and losses on disposals are determined by
comparing proceeds with carrying amount and are
recognized as income or expense in the statement of
profit and loss.

2.7 Intangible asset:

Intangible assets acquired separately:

Intangible Assets are stated at acquisition cost,
net of accumulated amortization and accumulated
impairment losses, if any. After initial recognition,
an intangible asset is carried at its cost less any
accumulated amortization and any accumulated
impairment loss. Subsequent expenditure is
capitalized only when it increases the future economic
benefits from the specific asset to which it relates.
Intangible assets are amortized on a straight line
basis over their estimated useful lives ranging from
3-5 years. The amortization period and amortization
method are reviewed as at each financial year end.
If the expected useful life of the asset is significantly
different from previous estimates, the amortization
period is changed accordingly.

Gains or losses arising from the retirement or disposal
of an intangible asset are determined as the difference
between the net disposal proceeds and the carrying
amount of the asset and recognized as income or
expense in the Statement of Profit and Loss.

Internally generated intangible asset

Research costs are charged to the statement of Profit
and Loss in the year in which they are incurred.

Product development costs incurred on electric
two-wheeler are recognized as intangible assets, when
feasibility has been established, the Company has
committed technical, financial and other resources to
complete the development and it is probable that asset
will generate future economic benefits.

The cost of an internally generated intangible asset
is the sum of directly attributable expenditure
incurred from the date when the intangible asset first
meets the recognition criteria to the completion of
its development.

Product development costs is amortized over the life
of the related product, being a period of 24 months
to 120 months. Product development expenditure is
measured at cost less accumulated amortization and
impairment, if any.

Amortization is not recorded on product in progress
until development is complete.

De-recognition of intangible assets

An item of intangible assets is derecognized on
disposal or when fully amortized and no longer in use.
Any gain or loss arising from de-recognition of an item
of intangible assets is included in profit or loss.

2.8 Non-current assets classified as held for sale

Non-current assets are classified as held for sale if their
carrying amount will be recovered principally through
a sale transaction rather than through continuing use
and a sale is considered highly probable. They are
measured at the lower of their carrying amount and fair
value less cost to sell.

An impairment loss is recognised for any initial or
subsequent write down of the asset to fair value less
cost to sell. A gain is recognised for any subsequent
increase in fair value less cost to sell of an asset,
but not in excess of any cumulative impairment loss
previously recognised. A gain or loss not previously
recognised by the date of sale of the non-current asset
is recognised at the date of de-recognition.

Non-current assets are not depreciated or amortized
while they are classified as held for sale.

Non-current assets classified as held for sale are
presented separately from the other assets in
the balance sheet.

2.9 Borrowings:

Borrowings are initially recognized at fair value, net of
transaction costs incurred. Borrowingsare subsequently
measured at amortized cost. Any difference between
the proceeds (net of transaction costs) and the
redemption amount is recognized in profit or loss
over the period of the borrowings using the effective
interest method. Fees paid on the establishment of
loan facilities are recognized as transaction costs of
the loan to the extent that it is probable that some or all
of the facility will be drawn down. In this case, the fee
is deferred until the draw down occurs. To the extent
there is no evidence that it is probable that some or all
of the facility will be drawn down, the fee is capitalized
as a prepayment for liquidity services and amortized
over the period of the facility to which it relates.

Borrowings are classified as current liabilities unless
the company has an unconditional right to defer
settlement of liability for at least 12 months after the
reporting period. Where there is a breach of a material
provision of a long term loan arrangement on or
before the end of the reporting period with the effect
that the liability becomes payable on demand on the
reporting date, the entity does not classify the liability
as current, if the lender agreed, after the reporting
period and before the approval of the financial
statements for issue, not to demand payment as a
consequence of the breach.

Borrowings are removed from the balance sheet when
the obligation specified in the contract is discharged,
cancelled or expired. 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 or liabilities assumed, is recognized in
profit or loss as other income / expenses.

2.10 Borrowing costs:

General and specific borrowing costs that are
directly attributable to the acquisition, construction
or production of a qualifying asset are capitalized
during the period of time that is required to complete
and prepare the asset for its intended use or sale.
Qualifying assets are assets that necessarily take
a substantial period of time to get ready for their
intended use or sale. Investment income earned on the
temporary investment of specific borrowing pending
their expenditure on qualifying assets is deducted
from the borrowing costs eligible for capitalization.
Other borrowing costs are expensed in the period in
which they are incurred.

2.11 Leases

The Company assesses whether a contract contains
a lease, at the inception of the 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,

(i) the contract involves the use of identified asset;

(ii) the Company has substantially all of the economic
benefits from the use of the asset through the
period of lease and

(iii) the Company has right to direct the use of the asset
As a lessee

The Company recognizes a right-of-use asset and
a lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost,
which comprises the initial amount of the lease liability
adjusted for any lease payments made at or before
the commencement date, plus any initial direct costs
incurred and an estimate of costs to dismantle and
remove the underlying asset or to restore the underlying
asset or the site on which it is located, less any lease
incentives received.

Certain lease arrangements include the option to
extend or terminate the lease before the end of the
lease term. The right-of-use assets and lease liabilities
include these options when it is reasonably certain that
the option will be exercised.

The right-of-use asset is subsequently depreciated using
the straight-line method from the commencement date
to the earlier of the end of the useful life of the right-of-
use asset or the end of the lease term. The estimated
useful lives of right-of-use assets are determined on
the same basis as those of property and equipment.
In addition, the right-of-use asset is periodically
reduced by impairment losses, if any, and adjusted for
certain re-measurements of the lease liability.

The Company presents right-of-use assets that do not
meet the definition of investment property in 'property,
plant and equipment' and lease liabilities in 'Financials
Liabilities' in the financial statements (Refer Note 4,
Note 20 a and Note 24 a).

The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted using the interest
rate implicit in the lease or, if that rate cannot be readily
determined, Company's incremental borrowing rate.
Generally, the Company uses its incremental borrowing
rate as the discount rate.

The lease liability is subsequently measured at
amortised cost using the effective interest method.
It is remeasured when there is a change in future lease
payments arising from a change in an index or rate,
if there is a change in the Company's estimate of the
amount expected to be payable under a residual value
guarantee, or if Company changes its assessment
of whether it will exercise a purchase, extension or
termination option.

When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying
amount of the right-of-use asset or is recorded in profit
or loss if the carrying amount of the right-of-use asset
has been reduced to zero.

Lease payments have been classified as financing
activities in Statement of Cash Flow.

Lease payments included in the measurement of the
lease liability comprise the following:

- Fixed payments, including in-substance fixed
payments less any lease incentives receivable;

- Variable lease payments that depend on a
rate, initially measured using the rate as at the
commencement date;

- Amounts expected to be payable under a residual
value guarantee; and

- The exercise price of a purchase option if the
Company is reasonably certain to exercise
that option and.

- Payments of penalties for terminating the
lease, if the lease term reflects the Company
exercising that option

The lease liability is measured at amortized cost
using the effective interest method. If the rate cannot
be determined readily, the Company's incremental
borrowing rate is used, being the rate that the Company
would have to pay to borrow the funds necessary to
obtain an asset of similar value to the right of use asset
in a similar economic environment with similar terms,
security and conditions.

To determine the incremental borrowing rate,
the Company:

- Where possible, uses recent third-party financing
received as a starting point, adjusted to reflect
changes in financing conditions since third party
financing was received

- Makes adjustments specific to the lease e.g.
term, country, currency and security

Lease payments are allocated between principal and
finance cost. The finance cost is charged to profit or
loss over the lease period so as to produce a constant
periodic rate of interest on the remaining balance of
the liability of each period.

As a lessor

Lease income from operating leases where the
Company is a lessor is recognized in income on
a straight-line basis over the lease term unless
the receipts are structured to increase in line with
expected general inflation to compensate for the
expected inflationary cost increases. The respective
leased assets are included in the balance sheet based
on their nature. The Company did not need to make
any adjustments to the accounting for assets held
as lessor under operating lease as a result of the
adoption of Ind AS 116.

Short-term leases and leases of low-value assets

The Company has elected not to recognize right-of-
use assets and lease liabilities for short term leases
that have a lease term of 12 months. The Company
recognizes the lease payments associated with these
leases as an expense on a straight-line basis over
the lease term.

.12 Inventories:

Raw materials and stores, work in progress and
finished goods are stated at the lower of cost and
net realizable value. Cost of raw materials comprises
cost of purchases, inward freight and other incidental
expenses net of GST, wherever applicable Cost of
work-in- progress and finished goods comprises
direct materials, direct labour and an appropriate
proportion of variable and fixed overhead expenditure,

the latter being allocated on the basis of normal
operating capacity.

Cost of inventories also include all other costs incurred
in bringing the inventories to their present location and
condition. Costs are assigned to individual items of
inventory on FIFO basis. Goods in transit is valued at
cost incurred till date. Costs of purchased inventory
are determined after deducting rebates and discounts.
Net realizable value is the estimated selling price in the
ordinary course of business less the estimated costs
of completion and the estimated costs necessary
to make the sale.

Tools and Dies under process have been valued
on percentage completion based on estimated
cost of production and development of respective
tools and dies.

Scrap is valued at net realizable value.

2.13 Employee benefits:

(i) Short-term obligations

Liabilities for wages and salaries, including
non-monetary benefits that are expected to be
settled wholly within 12 months after the end of the
period in which the employees render the related
service are recognized in respect of employees'
services up to the end of the reporting period and
are measured at the amounts expected to be paid
when the liabilities are settled. The liabilities are
presented as current employee benefit obligations
in the balance sheet.

The undiscounted amount of short-term
employee benefits expected to be paid in
exchange of services rendered by the employees
is recognized during the year when the employees
render the service.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave and sick leave are
not expected to be settled wholly within 12 months
after the end of the period in which the employees
render the related service. They are therefore
measured as the present value of expected future
payments to be made in respect of services
provided by employees up to the end of the

reporting period using the projected unit credit
method. The benefits are discounted using the
market yields at the end of the reporting period
that have terms approximating to the terms of the
related obligation. Re-measurements as a result of
experience adjustments and changes in actuarial
assumptions are recognized in profit or loss.

The obligations are presented as current liabilities
in the balance sheet if the entity does not have
an unconditional right to defer settlement for at
least twelve months after the reporting period,
regardless of when the actual settlement is
expected to occur.

(iii) Post-employment obligations

The company operates the following
post-employment schemes:

(a) Defined benefit plans such as gratuity; and

(b) Defined contribution plans

(a) Defined benefit plans such as gratuity

Gratuity obligations:

The liability or asset recognized in the
balance sheet in respect of defined benefit
gratuity plans is the present value of the
defined benefit obligation at the end of the
reporting period less the fair value of plan
assets. The defined benefit obligation is
calculated quarterly by actuaries using the
projected unit credit method.

The present value of the defined benefit
obligation is determined by discounting
the estimated future cash outflows by
reference to market yields at the end of the
reporting period on government bonds that
have terms approximating to the terms of
the related obligation. The net interest cost
is calculated by applying the discount rate
to the net balance of the defined benefit
obligation and the fair value of plan assets.
This cost is included in employee benefit
expense in the statement of profit and
loss. Re-measurement gains and losses
arising from experience adjustments and

value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and
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 liabilities on initial recognition. Transaction costs
directly attributable to the acquisition of financial
assets or financial liabilities at fair value through profit
or loss are recognized immediately in profit or loss

(i) Classification

The Company classifies its financial assets in the
following measurement categories:

• t hose to be measured subsequently at fair
value (either through other comprehensive
income, or through profit or loss)
(FVTOCI /FVTPL), and

• those measured at amortized cost.

The classification depends on the entity's
business model for managing the financial assets
and the contractual terms of the cash flows.
For assets measured at fair value, gains and
losses will either be recorded in profit or loss or
other comprehensive income. For investments
in debt instruments, this will depend on the
business model in which the investment is held.
For investments in equity instruments, this will
depend on whether the Company has made
an irrevocable election at the time of initial
recognition to account for the equity investment
at fair value through other comprehensive income.

Financial liabilities are classified as measured at
amortized cost or FVTPL. A financial liability is
classified as at FVTPL if it is classified as held-
for- trading, or it is a derivative or it is designated
as such on initial recognition.

(ii) Measurement

At initial recognition, the Company measures a
financial asset (unless it is a trade receivable
without a significant financing component) or
financial liability at its fair value plus or minus, in the
case of a financial asset and financial liability not at
fair value through profit or loss, transaction costs
that are directly attributable to the acquisition of

the financial asset. Transaction costs of financial
assets carried at fair value through profit or loss
are expensed in profit or loss. A trade receivable
without a significant financing component is
initially measured at the transaction price.

Subsequent measurement of debt instruments
depends on the Company's business models
for managing the assets and the cash flow
characteristics of the assets. There are three
measurement categories into which the Company
classifies its debt instruments:

Amortized cost: Assets that are held for collection
of contractual cash flows where those cash
flows represent solely payments of principal and
interest are measured at amortized cost. A gain
or loss on a debt investment that is subsequently
measured at amortized cost and is not part of
a hedging relationship is recognized in profit or
loss when the asset is derecognized or impaired.
Interest income from these financial assets is
included in finance income using the effective
interest rate method.

Fair Value through Other Comprehensive Income
(FVOCI): Assets that are held for collection of
contractual cash flows and for selling the financial
assets, where the assets' cash flows represent
solely payments of principal and interest, are
measured at FVOCI. Movements in the carrying
amount are taken through Other Comprehensive
Income (OCI), except for the recognition of
impairment gains or losses, interest revenue
and foreign exchange gains and losses which
are recognised in statement of profit and loss.
When the financial asset is derecognised, the
cumulative gain or loss previously recognised
in OCI is reclassified from equity to profit or
loss and recognised in other gains/ (losses).
Interest income from these financial assets is
included in other income using the effective
interest rate method.

Fair value through profit or loss: Assets that do not
meet the criteria for amortised cost or FVOCI are
measured at fair value through profit or loss. A gain
or loss on a debt investment that is subsequently
measured at fair value through profit or loss and is

not part of a hedging relationship is recognised in
profit or loss and presented net in the statement
of profit and loss within other gains/(losses) in
the period in which it arises. Interest income from
these financial assets is included in other income.

Equity instruments:

The Company subsequently measures all equity
investments at fair value. Where the Company's
management has elected to present fair value
gains and losses on equity investments in other
comprehensive income, there is no subsequent
reclassification of fair value gains and losses to
profit or loss. Dividends from such investments
are recognised in profit or loss as other income
when the Company's right to receive payments is
established. Changes in the fair value of financial
assets at fair value through profit or loss are
recognised in other gain/ (losses) in the statement
of profit and loss.

I mpairment losses (and reversal of impairment
losses) on equity investments measured at
FVOCI are not reported separately from other
changes in fair value.

Financial liabilities at FVTPL are measured at
fair value and net gains and losses, including
any interest expense, are recognized in profit or
loss. Other financial liabilities (that are not held
for trading or not designated at fair value through
profit or loss) are measured at amortized cost
at the end of subsequent accounting periods.
The carrying amounts of financial liabilities that
are subsequently measured at amortized cost are
determined based in the effective interest method.

Effective interest method is a method of
calculating amortized 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, 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.

Financial liabilities denominated in a foreign
currency and are measured at amortized cost
at the end of each reporting period, the foreign
exchange gains and losses are determined based
on the amortized cost of the instruments and are
recognized in the Statement of Profit or Loss.

The fair value of financial liabilities denominated
in a foreign currency is determined in that foreign
currency and translated at the spot rate at the end
of the reporting period. For financial liabilities that
are measured at fair value through profit or loss,
the foreign exchange component forms part of
the fair value gains or losses and is recognized in
the Statement of Profit and Loss.

(iii) Impairment of financial assets:

The Company assesses on a forward-looking
basis the expected credit losses associated
with its assets carried at amortized cost
and debt instruments. The impairment
methodology applied depends on whether there
has been a significant increase in credit risk.
For trade receivables only, the Company applies
the simplified approach permitted by Ind AS 109
Financial Instruments, which requires expected
lifetime losses to be recognized from initial
recognition of the receivables.

An impairment loss for financial assets is
reversed if the reversal can be related objectively
to an event occurring after the impairment loss
has been recognized.

(iv) Derecognition
Derecognition of Financial Assets

A financial asset is derecognised only when

*The Company has transferred the rights to
receive cash flows from the financial asset or

* Retains the contractual rights to receive the
cash flows of the financial asset but assumes
a contractual obligation to pay the cash flows to
one or more recipients.

Where the entity has transferred an asset, the
Company evaluates whether it has transferred
substantially all risks and rewards of ownership

of the financial asset. In such cases, the financial
asset is derecognised. Where the entity has not
transferred substantially all risks and rewards
of ownership of the financial asset, the financial
asset is not derecognized. Where the entity has
neither transferred a financial asset nor retains
substantially all risks and rewards of ownership
of the financial asset, the financial asset is
derecognised if the Company has not retained
control of the financial asset. Where the Company
retains control of the financial asset, the asset
is continued to be recognised to the extent of
continuing involvement in the financial asset.

For financial assets that are measured at FVTOCI,
income by way of interest and dividend, provision
for impairment and exchange difference, if any,
(on debt instrument) are recognised in Profit
or Loss and changes in fair value (other than
on account of above income or expense) are
recognised in Other Comprehensive Income and
accumulated in Other equity. On disposal of debt
instruments at FVTOCI, the cumulative gain or
loss previously accumulated in Other equity is
reclassified to Profit and Loss. In case of equity
instruments at FVTOCI, such cumulative gain
or loss is not reclassified to Profit and Loss on
disposal of investments.

Derecognition of Financial Liability

Financial liabilities are derecognized when,
and only when, the obligations are discharged,
cancelled or have expired. An exchange with a
lender of a debt instruments with substantially
different terms is accounted for as an
extinguishment of the original financial liability
and a recognition of a new financial liability.
Similarly, a substantial modification of the terms
of an existing financial liability 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 a financial liability derecognized and
the consideration paid or payable is recognized in
the Statement of Profit or Loss.

2.15 Offsetting financial instruments:

Financial assets and liabilities are offset and the net

amount is reported in the balance sheet where there

is a legally enforceable right to offset the recognized
amounts and there is an intention to settle on a
net basis or realize the asset and settle the liability
simultaneously. The legally enforceable right must
not be contingent on future events and must be
enforceable in the normal course of business and in
the event of default, insolvency or bankruptcy of the
group or the counterparty.

2.16 Impairment of non-financial assets:

In accordance with Ind AS 36 on "Impairment of
Assets" at the balance sheet date, non-financial assets
are reviewed for impairment losses whenever events
or changes in circumstances indicate that the carrying
amount may not be recoverable. For the purpose of
assessing impairment, the smallest identifiable group
of assets that generates cash inflows from continuing
use that are largely independent of the cash inflows
from other assets or groups of assets, is considered
as a cash generating unit. If any such indication exists,
an estimate of the recoverable amount of the asset/
cash generating unit is made. Assets whose carrying
value exceeds their recoverable amount are written
down to the recoverable amount. Recoverable amount
is higher of an asset's or cash generating unit's net
selling price and its value in use. Assessment is also
done at each Balance Sheet date as to whether there
is any indication that an impairment loss recognized
for an asset in prior accounting periods may no longer
exist or may have decreased.

2.17 Cash and cash equivalents:

For the purpose of presentation in the statement of
cash flows, cash and cash equivalents includes cash
on hand, deposits held at call with financial institutions,
other short-term, highly liquid investments with original
maturities of three months or less that are readily
convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value,
and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities in the balance sheet.

2.18 Trade receivables:

1. Trade receivables are amounts due from
customers for goods sold or services performed
in the ordinary course of business.

2. Trade receivables are measured at their
transaction price unless it contains a significant
financing component or pricing adjustments
embedded in the contract.

3. The impairment provisions for trade receivables
are based on assumptions about risk of default
and expected loss rates. The Company uses
judgement in making these assumptions and
selecting the inputs to the impairment calculation,
based on the Company's past history, existing
market conditions as well as forward looking
estimates at the end of each reporting period.

2.19 Trade and other payables:

These amounts represent liabilities for goods and
services provided to the company prior to the end
of financial year which are unpaid. Trade and other
payables are presented as current liabilities unless
payment is not due within 12 months after the reporting
period. They are recognized initially at their fair value
and subsequently measured at amortized cost using
the effective interest method.

2.20 Earnings per share:

The Company reports basic and diluted earnings per
share in accordance with Ind AS 33 on Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

• the profit or loss for the period attributable to
owners of the company

• by the weighted average number of equity
shares outstanding during the financial year.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures
used in the determination of basic earnings per
share to take into account:

• t he after income tax effect of interest and
other financing costs associated with dilutive
potential equity shares, and

• t he weighted average number of additional
equity shares that would have been

outstanding assuming the conversion of all
dilutive potential equity shares except where
the results are anti-dilutive.

2.21 Income tax:

The income tax expense or credit for the period is the
tax payable on the current period's taxable income
based on the applicable income tax rate for each
jurisdiction adjusted by changes in deferred tax assets
and liabilities attributable to temporary differences and
to unused tax losses.

The current income tax charge is calculated on the basis
of the tax laws enacted or substantively enacted at the
end of the reporting period. Management periodically
evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject
to interpretation. It establishes provisions where
appropriate on the basis of amounts expected to be
paid to the tax authorities.

Deferred income tax is provided in full, using the liability
method, on temporary differences arising between the
tax bases of assets and liabilities and their carrying
amounts in the financial statements.

Deferred income tax is determined using tax rates (and
laws) that have been enacted or substantially enacted
by the end of the reporting period and are expected to
apply when the related deferred income tax asset is
realized or the deferred income tax liability is settled.
Deferred tax assets are recognized for all deductible
temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available
to utilize those temporary differences and losses.

Deferred tax assets and liabilities are offset when there
is a legally enforceable right to offset current tax assets
and liabilities and when the deferred tax balances relate
to the same taxation authority. Current tax assets and
tax liabilities are offset where the entity has a legally
enforceable right to offset and intends either to settle
on a net basis, or to realize the asset and settle the
liability simultaneously.

Current and deferred tax is recognized in profit or loss,
except to the extent that it relates to items recognized in
other comprehensive income or directly in equity. In this

case, the tax is also recognized in other comprehensive
income or directly in equity, respectively.