1. MATERIAL ACCOUNTING POLICIES
The material accounting policies applied by the Company in the preparation of its financial statements are
listed below. Such accounting policies have been applied consistently to all the periods presented in these
financial statements and in preparing the Ind AS Balance Sheet, Statement of Profit and Loss Account,
Statement of Cash Flow, Statement of changes in equity and notes forming part of financials.
a. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
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 read with Rule 3 of the Companies (Indian Accounting Standards)
Rules, 2015 as amended from time to time.
The standalone financial statements have been prepared on accrual and going concern basis. The accounting
policies are applied consistently to all the periods presented in the standalone financial statements.
All assets and liabilities have been classified as current or non-current as per the Company's normal operating
cycle, the Company has considered an operating cycle of 12 months
Financial statements are presented in Indian Rupee (') which is the functional currency, and all values are
rounded to the nearest Lakhs as per the requirement of Schedule III to the Companies Act, 2013, except
where otherwise indicated. The Company has prepared the financial statements on the basis that it will
continue to operate as a going concern.
Foreign currency transactions are recorded at exchange rates prevailing on the date of the transaction.
Foreign currency denominated monetary assets and liabilities are retranslated at the exchange rate
prevailing on the balance sheet dates and exchange gains and losses arising on settlement and restatement
are recognised in the statement of profit and loss.
b. USE OF ESTIMATES
The preparation of these financial statements in conformity with the recognition and measurement principles
of Ind AS requires the management of the Company to make estimates and assumptions that affect the
reported balances of assets and liabilities, disclosures relating to contingent liabilities as at the date of the
financial statements and the reported amounts of income and expense for the periods presented. Estimates
and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and future periods are affected. Estimates and
judgements are continually evaluated. They are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the company and that are believed to be
reasonable under the circumstances. Information about critical judgments in applying accounting policies,
as well as estimates and assumptions that have the most significant effect to the carrying amounts of assets
and liabilities within the next financial year, are as follows:
- Determination of the estimated useful lives of tangible assets and the assessment as to which component of
the cost may be capitalized - refer point 1 (d) of material accounting policies
- Determination of the estimated useful lives of Intangible assets and the assessment as to which component
of the cost may be capitalized - refer point 1 (e) of material accounting policies
- Recognition of deferred tax assets - refer note no. 6
- Recognition and measurement of defined benefit obligations - refer note no. 34
- Provisions and Contingent Liabilities - refer note no. 35
c. 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 realised or intended to be sold or consumed in normal operating cycle
• Held primarily for the purpose of trading
• Expected to be realised 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 within twelve months after the reporting period, or
• There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash
and cash equivalents. The Company has identified twelve months as its operating cycle.
d. PROPERTY, PLANT AND EQUIPMENT
Property, Plant and Equipment are stated at acquisition cost, net of accumulated depreciation and
accumulated impairment losses, if any. Cost includes acquisition cost and any capital expenditure directly
attributable to the cost of acquisition. All other repair and maintenance costs that do not enhance the life or
benefit of the property, plant and equipment are recognised in profit or loss as incurred.
Gains or losses arising on retirement or disposal of property, plant and equipment are recognised in the
Statement of Profit and Loss.
DEPRECIATION METHODS, ESTIMATED USEFUL LIFE AND RESIDUAL VALUE:
Depreciation is provided on the Written Down method on the estimated useful life as prescribed under
Schedule II to the Companies Act, 2013 to allocate the cost of assets, net of their residual values, over their
The residual values are not more than 5% of the original cost of the asset. The residual values, useful lives
and method of depreciation of property, plant and equipment is reviewed at each financial year end and
adjusted prospectively, if appropriate.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits
are expected to arise from the continued use of the asset. Any gain or loss arising on disposal or retirement
of an item of property, plant and equipment is determined as the difference between sales proceeds and
the carrying amount of the asset and is recognised in profit or loss. Fully depreciated assets still in use are
retained in financial statements at residual value.
e. INTANGIBLE ASSETS
Intangible Assets are recognized only when future economic benefits arising out of the assets flow to the
enterprise and are amortised over their useful life of 3 years or useful life of the intangible asset as decided
by the management. Following initial recognition, intangible assets are carried at cost less any accumulated
amortisation and accumulated impairment losses, if any. Internally generated intangibles, excluding
capitalised development costs, are not capitalised and the related expenditure is reflected in Statement of
Profit and Loss in the period in which the expenditure is incurred. Gains or losses arising from derecognition
of an intangible asset are measured as the difference between the net disposal proceeds and the carrying
amount of the asset and are recognised in the Statement of Profit and Loss when the asset is derecognised.
Kindly refer to Note No. 4 of the Standalone Financials for derecognition/ sale of Intangible Assets during
the year
f. INVESTMENT IN SUBSIDIARIES AND ASSOCIATES
Investments in subsidiaries and associates are carried at cost less accumulated impairment losses, if any.
Where an indication of impairment exists, the carrying amount of the investment is assessed and written
down immediately to its recoverable amount. Any disposal of investments in subsidiaries, the difference
between net disposal proceeds and the carrying amounts are recognized in the Statement of Profit and
Loss.
g. INVENTORIES
Inventories are valued at the lower of cost and net realizable value. Cost includes cost of purchase and other
cost incurred in bringing the inventories to their present location and condition. Cost is determined on First
in First out (FIFO) basis. Net realizable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and the estimated costs necessary to make the sale.
h. CASH AND CASH EQUIVALENTS
The Company considers all highly liquid investments, which are readily convertible into known amounts
of cash that are subject to an insignificant risk of change in value, to be cash equivalents. Cash and cash
equivalents consist of balances with banks, Cash in hand and short-term deposits with an original maturity
of three months or less that are readily convertible to known amounts of cash, which are unrestricted for
withdrawal and usage.
Other bank balances represent balances held with banks that are not readily available for use by the Company
in its day-to-day operations and do not meet the definition of cash and cash equivalents. Such balances
primarily include:
• Margin money deposits against borrowings, guarantees, or other commitments, and
• Unpaid dividend accounts
These balances are carried at amortised cost using the effective interest rate method, where applicable.
i. FINANCIAL INSTRUMENTS
Financial assets and liabilities are recognised when the Company becomes a party to the contractual
provisions of the instrument. Financial assets and 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 measured on initial recognition of financial asset or financial liability.
FINANCIAL ASSETS AT AMORTISED COST
Financial assets are subsequently measured at amortised cost if these financial assets are held within a
business whose objective is to hold these assets in order to collect contractual cash flows and the contractual
terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (FVTOCI)
Financial assets are measured at fair value through other comprehensive income if these financial assets
are held within a business whose objective is achieved by both collecting contractual cash flows that give
rise on specified dates to solely payments of principal and interest on the principal amount outstanding and
by selling financial assets.
The Company has made an irrevocable election to present subsequent changes in the fair value of equity
investments not held for trading in Other Comprehensive Income
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (FVTPL)
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.
FINANCIAL LIABILITIES
All financial liabilities are recognised initially at fair value and in the case of loans and borrowings and
payables, net of directly attributable transaction costs.
The Company's financial liabilities include trade and other payables, loans and borrowings including bank
overdrafts and other current liabilities.
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised
cost using the 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 the EIR. Gains and losses are recognised in
profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. The EIR
amortisation is included as finance costs in the Statement of Profit and Loss.
OFF SETTING OF FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet if
there is a currently enforceable legal right to offset the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle the liabilities simultaneously.
j. FAIR VALUE MEASUREMENT
i. 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 under current market conditions
regardless of whether that price is directly observable or estimated using another valuation technique.
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.
ii. 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 marketparticipants act in their economic best interest.
iii. 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.
iv. All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised 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 - This hierarchy uses quoted (unadjusted) market prices in active markets for identical assets
or liabilities.
• Level 2 - The fair value of financial instruments that are not traded in an active market is determined
using valuation techniques which maximize the use of observable market data and rely as little as
possible on company specific estimates.
• Level 3 - If the lowest level input that is significant to the fair value measurement is not based on
observable market data.
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