The carrying amount of any component accounted
for as a separate asset is derecognised when replaced.
All other repairs and maintenance are charged to
statement of profit and loss during the reporting
period in which they are incurred.

Depreciation on the Property, Plant and Equipment is
provided using straight line method over the useful
life of the assets as specified in Schedule II to the
Companies Act, 2013.

The asset's residual values, useful lives and method of
depreciation are reviewed at each financial year end
and are adjusted prospectively, if appropriate.

Losses arising from the retirement of, and gains or
losses arising from disposal of Property, Plant and
Equipment are recognised in the Statement of Profit
and Loss.

iii) Intangible Assets

Intangible assets are stated at acquisition cost, net of
accumulated amortisation and impairment losses, if
any.

Intangible Assets with finite useful lives are amortized
on a straight line basis over the following period:

a) Material Accounting Policies

i) Investments in subsidiaries

I nvestments in subsidiaries and associates are
recognized at cost, less impairment loss (if any)
as per Ind AS 27. Investments are reviewed for
impairment if events or changes in circumstances
indicate that the carrying amount may not be
recoverable.

ii) Property, Plant and Equipment

Property, Plant and Equipment are carried at
cost, net of recoverable taxes, trade discount
and rebates less accumulated depreciation
and impairment losses, if any. Cost includes
purchase price, borrowing cost and any cost
directly attributable to the bringing the assets
to its working condition for its intended use.
Subsequent costs are included in the asset's
carrying amount or recognised as a separate
asset, as appropriate, only when it is probable
that future economic benefits associated with
the item will flow to the entity and the cost can
be measured reliably. In case of Property, Plant
and Equipment, the Company has availed the
carrying value as deemed cost on the date of Ind
AS transition i.e. 1st April, 2016.

The assets' residual values and useful lives are reviewed,
and adjusted if appropriate, at the end of each reporting
period.

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

iv) I mpairment of Non-Financial Assets - Property,
Plant and Equipment and Intangible Assets:

The Company assesses at each Balance Sheet date
whether there is any indication that an asset may be
impaired. For the purposes 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
group of assets is considered as a cash generating unit.
If any such indication exists, the Company estimates
the recoverable amount of the asset. The recoverable
amount is the higher of an asset's fair value less costs of
disposal and value in use. If such recoverable amount
of the asset or the recoverable amount of the cash
generating unit to which the asset belongs is less than
its carrying amount, the carrying amount is reduced to

its recoverable amount. The reduction is treated as an
impairment loss and is recognised in the Statement of
Profit and Loss. If at the Balance Sheet date there is an
indication that a previously assessed impairment loss
no longer exists or may have decreased, the recoverable
amount is reassessed and the asset is reflected at the
recoverable amount.

v) Financial instruments

Financial assets and financial liabilities are recognised
when the Company becomes a party to the contractual
provisions of the instruments.

Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of
financial assets and financial 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 financial liabilities,
as appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial
assets or financial liabilities at fair value through profit
or loss are recognised immediately in statement of
profit and loss.

Investments and Other Financial Assets
Classification

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

• those to be measured subsequently at fair value
(either through other comprehensive income, or
through profit or loss), and

• those measured at amortised 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.

The Company reclassifies debt investments when and
only when its business model for managing those
assets changes.

Debt instruments

Subsequent measurement of debt instruments
depends on the Company's business model for
managing the asset and the cash flow characteristics
of the asset.

Amortised 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
amortised cost. A gain or loss on a debt investment
that is subsequently measured at amortised cost and
is not part of a hedging relationship is recognised
in statement of profit and loss when the asset is
derecognised or impaired. Interest income from these
financial assets is included in finance income using the
effective interest rate method"

Fair value through profit or loss:

Assets that do not meet the criteria for amortised cost
or FVTOCI 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"

Impairment of financial assets

The Company applies the expected credit loss model
for recognising impairment loss on financial assets
measured at amortised cost including Loans, Unbilled
Revenue, trade receivables and other contractual rights
to receive cash or other financial asset.

For trade receivables or any contractual right to
receive cash or another financial asset that result from
transactions that are within the scope of Ind AS 115,
the Company always measures the loss allowance at
an amount equal to lifetime expected credit losses.

Further, for the purpose of measuring lifetime expected
credit loss ("ECL") allowance for trade receivables, the
Company has used a practical expedient as permitted
under Ind AS 109. This expected credit loss allowance is
computed based on a provision matrix which takes into
account historical credit loss experience and adjusted
for forward-looking information."

De-recognition 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 derecognised.

Financial liabilities and equity instruments
Classification as debt or equity

Debt and equity instruments issued by a Company
entity are classified as either financial liabilities or
as equity in accordance with the substance of the
contractual arrangements and the definitions of a
financial liability and an equity instrument.

Equity Instrument

An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments issued
are recognised at the proceeds received, net of direct
issue costs.

Financial liabilities

All financial liabilities are subsequently measured at
amortised cost using the effective interest method or
at fair value through profit and loss.

Financial liabilities that are not held-for-trading
and are not designated as FVTPL are measured at
amortised cost at the end of subsequent accounting
periods. The carrying amounts of financial liabilities
that are subsequently measured at amortised cost are
determined based on the effective interest method.

The effective interest method is a method of calculating
the amortised 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 paid or received that form an integral part of
the effective interest rate, transaction costs and other
premiums or discounts) through the expected life of
the financial liability, or (where appropriate) a shorter
period, to the amortised cost of a financial liability.

Borrowings are classified as current liabilities unless
the Company has an unconditional right to defer
settlement of the 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 Company does not classify
the liability as current, if the lender has 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.

Offsetting Financial Instruments

Financial Assets and Liabilities are offset and the net
amount is reflected in the balance sheet where there
is a legally enforceable right to offset the recognised
amounts and there is an intention to 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
Company or counterparty.

vi) Inventories

Inventories comprise of stock-in-trade and
consumables. Inventories are valued at the lower of
cost and the net realisable value after providing for
obsolescence and other losses, where considered
necessary. Cost is determined on Simple Average basis.
Cost includes all charges in bringing the goods to their
present location and condition, including octroi and
other levies, transit insurance and receiving charges.

Net realizable value is the estimated selling price in
the ordinary course of business less the estimated cost
necessary to make the sale.

vii) Employee Benefits

(i) Short-term obligations

Liabilities for 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 recognised 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.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave which 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 recognised 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:

- Defined Contribution plans such as
provident fund, pension and employee state
insurance scheme

- Defined Benefit plans such as Gratuity
Defined Contribution Plans

The Company's contribution to provident fund (in
case of contributions to the Regional Provident
Fund office), pension and employee state
insurance scheme are considered as defined
contribution plans, as the Company does not
carry any further obligations apart from the
contributions made on a monthly basis and are
charged as an expense based on the amount of
contribution required to be made.

Defined Benefit Plan

The liability or asset recognised in the balance
sheet in respect of 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
annually by actuary 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, changes in actuarial
assumptions and return on plan assets (excluding
interest income) are recognised in the period in
which they occur, directly in other comprehensive
income. They are included in retained earnings
in the statement of changes in equity and in the
balance sheet.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognised immediately in profit
or loss as past service cost.

(iv) Termination benefits

Termination benefits are payable when
employment is terminated by the Company

before the normal retirement date, or when
an employee accepts voluntary redundancy
in exchange of these benefits. The Company
recognises termination benefits at earlier of
the following dates: (a) when the Company can
no longer withdraw the offer of those benefits;
and (b) when the entity recognises cost for a
restructuring that is within the Scope of Ind As
37 and involves the payment of termination
benefits. In case of an offer made to encourage
voluntary redundancy, the termination benefits
are based on the number of employees expected
to accept the offer. Benefits falling due more than
12 months after the end of reporting period are
discounted to the present value.

(v) Bonus Plans

The Company recognises a liability and an expense
for bonuses. The Company recognises a provision
where contractually obliged or where there is a
past practice that has created a constructive
obligation.