4. SUMMARY OF MATERIAL ACCOUNTING
POLICIES INFORMATION

4.1. Non-Current Assets Held for Sale

Non-current assets are classified as assets-held-for sale
when their carrying amount is to be recovered principally
through a sale transaction and a sale is considered highly
probable. The sale is considered highly probable only when
the asset is available for immediate sale in its present
condition, it is unlikely that the sale will be withdrawn
and sale is expected within one year from the date of the
classification. Assets classified as held for sale are stated at
the lower of carrying amount and fair value less costs to sell.

Assets classified as held for sale are presented separately
in the balance sheet.

Loss is recognised for any initial or subsequent write
-down of the asset to fair value less costs to sell. A gain is
recognised for any subsequent increases in fair value less
costs to sell of an asset, but not in excess of any cumulative
loss previously recognised.

Discontinued operations are excluded from the results of
continuing operations and are presented as a single amount
as profit/ loss after tax from discontinued operations in the
Statement of Profit and Loss.

4.2. Property Plant and Equipment (‘PPE’)

An item is recognised as an asset, if and only if, it is
probable that the future economic benefits associated
with the item will flow to the Company and its cost can
be measured reliably. PPE are stated at actual cost less
accumulated depreciation and impairment loss, if any.
Actual cost is inclusive of freight, installation cost, duties,
taxes and other incidental expenses for bringing the asset
to its working conditions for its intended use (net of tax
credit, if any) and any cost directly attributable to bring
the asset into the location and condition necessary for it
to be capable of operating in the manner intended by the
Management. It includes professional fees and borrowing
costs for qualifying assets.

Property, Plant and Equipment and intangible assets are not
depreciated or amortized once classified as held for sale.

Significant Parts of an item of PPE (including major
inspections) having different useful lives & material value or
other factors are accounted for as separate components.
All other repairs and maintenance costs are recognized in
the statement of profit and loss as incurred.

Depreciation of these PPE commences when the assets
are ready for their intended use. The estimated useful
lives and residual values are reviewed on an annual basis
and if necessary, changes in estimates are accounted for
prospectively. Depreciation on subsequent expenditure
on PPE arising on account of capital improvement or
other factors is provided for prospectively over the
remaining useful life.

Depreciation is provided pro-rata to the period of use on
the straight line method based on the estimated useful life
of the assets. The residual values are not more than 5% of
the original cost of the assets. The useful life of property,
plant and equipment are as follows: -

Note:

a. For these classes of assets based on internal
assessment and technical evaluation, the
management believes that the useful lives as given
above best represent the period over which the
Management expects to use these assets. Hence,
the useful lives for these assets is different from the
useful lives as prescribed under Part C of Schedule II
of Companies Act 2013.

b. Depreciation on the amount capitalized on up-
gradation of the existing assets is provided over the
balance life of the original asset.

c. An item of PPE is de-recognized 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 the disposal or retirement of an item
of PPE is determined as the difference between the
sales proceeds and the carrying amount of the asset
and is recognized in the Statement of Profit and Loss.

4.3. Intangible Assets and amortisation

Intangible assets are recognised when it is probable that
the future economic benefits that are attributable to the
asset will flow to the enterprise and the cost of the asset
can be measured reliably. Intangible assets are stated at
original cost net of tax/duty credits availed, if any, less
accumulated amortisation and cumulative impairment.
Administrative and other general overhead expenses that
are specifically attributable to acquisition of intangible
assets are allocated and capitalised as a part of the cost of
the intangible assets.

Recognition of intangible assets

a. Computer software

Purchase of computer software used for the purpose
of operations is capitalized. However, any expenses
on software support, maintenance, upgrade etc.
payable periodically is charged to the Statement
of Profit & Loss.

b. Revenue expenditure of specialized R&D Division

Research and development expenditure
on new products:

(i) Expenditure on research is expensed under
respective heads of account in the period in
which it is incurred.

(ii) Development expenditure on new products
is capitalised as intangible asset, if all of the
following can be demonstrated:

• the technical feasibility of completing the
intangible asset so that it will be available
for use or sale;

• the company has intention to complete the
intangible asset and use or sell it;

• the company has ability to use or sell the
intangible asset;

• the manner in which the probable future
economic benefits will be generated
including the existence of a market for

output of the intangible asset or intangible
asset itself or if it is to be used internally,
the usefulness of intangible assets;

• the availability of adequate technical,
financial and other resources to complete
the development and to use or sell the
intangible asset; and

• the company has ability to reliably
measure the expenditure attributable to the
intangible asset during its development.

Development expenditure that does not meet
the above criteria is expensed in the period in
which it is incurred.

Following initial recognition of the development
expenditure as an asset, the asset is carried at
cost less any accumulated amortization and
accumulated impairment losses. Amortization of
the asset begins when development is complete
and the asset is available for use.

It is amortized over the period of expected future
benefit. Amortization expense is recognized
in the statement of profit and loss unless
such expenditure forms part of carrying value
of another asset.

During the period of development, the asset is
tested for impairment annually

Amortisation periods and methods: Intangible
assets are amortised on straight line basis over a
period ranging between 2-5 years which equates
its economic useful life.

The amortization period and the amortization
method are reviewed at least at each financial
year end. If the expected useful life of the asset
is different from previous estimates, the change
is accounted for prospectively as a change in
accounting estimate.

• De-recognition of intangible assets

An intangible asset is derecognized on disposal,
or when no future economic benefits are
expected from use or disposal. Gains or losses
arising from de-recognition of an intangible
asset, 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.

After initial measurement, such financial assets are
subsequently measured at amortized cost using the
effective interest rate (EIR) method.

Debt instrument at FVTOCI

A ‘debt instrument’ is classified as at the FVTOCI if both of
the following criteria are met:

a) The objective of the business model is achieved both
by collecting contractual cash flows and selling the
financial assets, and

b) The asset’s contractual cash flows represent SPPI

Debt instruments included within the FVTOCI category
are measured initially as well as at each reporting date
at fair value. Fair value movements are recognized in
the other comprehensive income (OCI). However, the
Company recognizes interest income, impairment losses &
reversals and foreign exchange gain or loss in the P&L. On
derecognition of the asset, cumulative gain or loss previously
recognized in OCI is reclassified from the equity to P&L.
Interest earned whilst holding FVTOCI debt instrument is
reported as interest income using the EIR method.

Debt instrument at FVTPL

Any debt instrument, that does not meet the criteria
for categorization as at amortized cost or as FVTOCI, is
classified as at FVTPL.

In addition, the Company may elect to designate a debt
instrument, which otherwise meets amortized cost or
FVTOCI criteria, as at FVTPL. However, such election
is allowed only if doing so reduces or eliminates a
measurement or recognition inconsistency (referred to as
‘accounting mismatch’). The Company has not designated
any debt instrument as at FVTPL.

Debt instruments included within the FVTPL category are
measured at fair value with all changes recognized in the P&L.

Equity investments (Other than investment in subsidiary)

All other equity investments are measured at fair value. For
Equity instruments, the Company may make an irrevocable
election to present in other comprehensive income
subsequent changes in the fair value. The Company
makes such election on an instrument-by-instrument
basis. The classification is made on initial recognition and
is irrevocable.

If the Company decides to classify an equity instrument as
at FVTOCI, then all fair value changes on the instrument,
excluding dividends, are recognized in the OCI. This
amount is not recycled from OCI to P&L, even on sale
of investment. However, the Company may transfer the
cumulative gain or loss within equity.

Financial assets are measured at fair value through profit
or loss unless they are 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
Statement of Profit and Loss.

Equity instruments included within the FVTPL category are
measured at fair value with all changes recognized in the
Statement of Profit and Loss.

Investments in Mutual Funds

Investments in mutual funds are measured at fair value
through profit or loss (FVTPL)

Cash and cash equivalents

The Company considers all highly liquid financial
instruments, which are readily convertible into known
amounts of cash that are subject to an insignificant risk
of change in value and having original maturities of three
months or less from the date of purchase, to be cash
equivalents. Cash and cash equivalents consist of balances
with banks which are unrestricted for withdrawal and usage.

De-recognition

A financial asset is de-recognized 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 Company has transferred an asset, it evaluates
whether it has transferred substantially all risks and
rewards of ownership of the financial asset. In such cases,
the financial asset is de-recognized.

Where the Company has neither transferred a financial
asset nor retains substantially all risks and rewards of
ownership of the financial asset, the financial asset is de¬
recognised 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.

Impairment of financial assets

The Company assesses at each date of balance sheet
whether a financial asset or a group of financial assets is
impaired. Ind AS 109 requires expected credit losses to
be measured through a loss allowance. In determining the
allowances for doubtful trade receivables, the Company
has used a practical expedient by computing the expected
credit loss allowance for trade receivables based on a

provision matrix. The provision matrix considers historical
credit loss experience and is adjusted for forward looking
information. For all other financial assets, expected credit
losses are measured at an amount equal to the 12-months
expected credit losses or at an amount equal to the life
time expected credit losses if the credit risk on the financial
asset has increased significantly since initial recognition.

ECL impairment loss allowance (or reversal) recognized
during the period is recognized as income/ expense in the
statement of profit and loss (P&L).

Financial liabilities

Financial liabilities and equity instruments issued by the
company are classified according to the substance of the
contractual arrangements entered into and the definitions
of a financial liability and an equity instrument.

Initial recognition and measurement

Financial liabilities are recognised when the company
becomes a party to the contractual provisions of the
instrument. Financial liabilities are initially measured at
the amortised cost unless at initial recognition, they are
classified as fair value through profit and loss.

Subsequent measurement

Financial liabilities are subsequently measured at
amortised cost using the effective interest rate method.
Financial liabilities carried at fair value through profit or
loss are measured at fair value with all changes in fair value
recognised in the statement of profit and loss.

Trade and Other Payables

These amounts represent liabilities for goods and services
provided to the Company prior to the end of financial period
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
amortised cost using the effective interest method.

Loans and Borrowings

After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortized cost
using the EIR method. Gains and losses are recognized in
profit or loss when the liabilities are derecognized as well as
through the EIR amortization process.

Financial Guarantee Contracts

Financial guarantee contracts are recognised initially as
a liability at fair value, adjusted for transaction costs that
are directly attributable to the issuance of the guarantee.
Subsequently, the liability is measured at the higher of the
amount of loss allowance determined as per impairment
requirements of Ind AS 109 and the amount recognised
less cumulative amortisation.

Derecognition

A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.

4.5. Impairment of Non-Financial Assets

The Company assesses, at each reporting date, whether
there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for
an asset is required, the Company estimates the asset’s
recoverable amount. An asset’s recoverable amount is the
higher of an asset’s or cash-generating unit’s (CGU) fair
value less costs of disposal and its value in use.

Recoverable amount is determined for an individual
asset, unless the asset does not generate cash inflows
that are largely independent of those from other assets or
group of assets.

When the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and
is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset.
In determining fair value less costs of disposal, recent
market transactions are considered. If no such transactions
can be identified, an appropriate valuation model is used.
Impairment losses of continuing operations, including
impairment on inventories, are recognized in the statement
of profit and loss.

A previously recognized impairment loss (except for
goodwill) is reversed only if there has been a change in the
assumptions used to determine the asset’s recoverable
amount since the last impairment loss was recognized. The
reversal is limited to the carrying amount of the asset.

4.6. Inventories

a) Basis of valuation:

1. Inventories including work-in-progress , other
than scrap materials are valued at lower of cost
and net realizable value after providing cost of
Obsolescence, if any. The cost is determined
using weighted average cost method.

2. Inventory of scrap materials have been valued at
net realizable value.

b) Method of valuation:

1. Cost of raw materials comprises all costs of
purchase, duties, taxes (other than those subsequently
recoverable from tax authorities) and all other costs
incurred in bringing the inventories to their present
location and condition.

2. Cost of finished goods and work-in-progress
includes direct fixed and variable production
overheads and indirect taxes as applicable.
Fixed production overheads are allocated on the
basis of normal capacity of production facilities.

3. Cost of traded goods comprises all costs
of purchase, duties, taxes (other than those
subsequently recoverable from tax authorities)
and all other costs incurred in bringing the
inventories to their present location and condition.

4. Net realizable value is the estimated selling
price in the ordinary course of business, less
estimated costs of completion and estimated
costs necessary to make the sale.

4.7. Borrowing Costs

Borrowing costs that are directly attributable to the
acquisition, construction or production of qualifying
asset are capitalized as part of cost of such asset. Other
borrowing costs are recognized as an expense in the period
in which they are incurred.

Borrowing costs consists of interest and other costs that an
entity incurs in connection with the borrowing of funds.

4.8. Investments in subsidiaries, associates and joint
ventures

The Company records the investments in subsidiaries,
associates and joint ventures 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.

When the Company issues financial guarantees on behalf
of subsidiaries, initially it measures the financial guarantees
at their fair values and subsequently measures at the
higher of the amount of loss allowance determined as per
impairment requirements of Ind AS 109 and the amount
recognized less cumulative amortization.

The Company records the initial fair value of financial
guarantee as deemed investment with a corresponding
liability recorded as deferred revenue. Such deemed
investment is added to the carrying amount of investment
in subsidiaries.

Deferred revenue is recognized in the Statement of
Profit and Loss over the remaining period of financial
guarantee issued.

The Company reviews its carrying value of investments
carried at cost (net of impairment, if any) annually, or
more frequently when there is indication for impairment. If
the recoverable amount is less than its carrying amount,
the impairment loss is accounted for in the statement of
profit and loss.

4.9. Foreign Currency Transactions

The functional currency of the Company is Indian Rupees
which represents the currency of the economic environment
in which it operates.

Transactions in currencies other than the Company’s
functional currency are recognized at the rates of exchange
prevailing at the dates of the transactions. Monetary items
denominated in foreign currency at the year end and not
covered under forward exchange contracts are translated
at the functional currency spot rate of exchange at the
reporting date.

Any income or expense on account of exchange difference
between the date of transaction and on settlement or on
translation is recognized in the profit and loss account as
income or expense.

Non-monetary items that are measured at fair value in a
foreign currency are translated using the exchange rates
at the date when the fair value was determined. Translation
difference on such assets and liabilities carried at fair value
are reported as part of fair value gain or loss.

In case of forward exchange contracts, the premium
or discount arising at the inception of such contracts
is amortized as income or expense over the life of the
contract. Further exchange difference on such contracts

i.e. difference between the exchange rate at the reporting
/settlement date and the exchange rate on the date of
inception of contract/the last reporting date, is recognized
as income/expense for the period.

4.10. Taxation

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 adjusted by changes in
deferred tax assets and liabilities attributable to temporary
differences and to unused tax losses, if any.

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 Standalone Financial Statement. However, deferred
tax liabilities are not recognized if they arise from the
initial recognition of goodwill. Deferred income tax is also
not accounted for if it arises from initial recognition of an
asset or liability in a transaction other than a business
combination that at the time of the transaction affects

neither accounting profit nor taxable profit (tax loss).
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.

The carrying amount of deferred tax assets are reviewed at
the end of each reporting period and are recognized only if
it is probable that future taxable amounts will be available
to utilize those temporary differences and losses.

Deferred tax liabilities are not recognized for temporary
differences between the carrying amount and tax bases
of investments in subsidiaries, where the Company is
able to control the timing of the reversal of the temporary
differences and it is probable that the differences will not
reverse in the foreseeable future.

Deferred tax assets are not recognized for temporary
differences between the carrying amount and tax bases of
investments in subsidiaries, associates and interest in joint
arrangements where it is not probable that the differences
will reverse in the foreseeable future and taxable profit will
not be available against which the temporary difference
can be utilized.

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.

Deferred Tax includes MAT tax Credit. The Company
recognizes tax credit in the nature of MAT credit as an asset
only to the extent that there is convincing evidence that the
Company will pay normal income tax during the specified
period, i.e. the period for which tax credit is allowed to be
carried forward. The Company reviews the such tax credit
asset at each reporting date to assess its recoverability.

4.11.Revenue Recognition

The company recognizes revenue in accordance with Ind-
AS 115. Revenue is recognized upon transfer of control of
promised products or services to customers in an amount
that reflects the consideration that the Company expects to
receive in exchange for those products or services.

Revenues in excess of invoicing are classified as contract
assets (which may also refer as unbilled revenue) while
invoicing in excess of revenues are classified as contract
liabilities (which may also refer to as unearned revenues).

The Company presents revenues net of indirect taxes in its
Statement of Profit and loss.

The specific recognition criteria from various stream of
revenue is described below:

a. Revenue from the sale of goods is recognized upon
transfer of control of promised products, usually on
delivery of the goods (i.e. when performance obligation
is satisfied) at the amount of transaction price (net of
variable consideration) allocated to that performance
obligation. The transaction price of goods sold and
services rendered is net of returns and allowances,
trade discounts and volume rebates offered by the
Company as part of the contract.

b. Revenue from Services is recognized when respective
service is rendered and accepted by the customer.

c. Capacity swaps

The exchange of network capacity is recognised at
fair value unless the transaction lacks commercial
substance or the fair value of neither the capacity
received nor the capacity given is reliably measurable.

d. Interest income

For all debt instruments measured either at amortized
cost or at fair value through other comprehensive
income, interest income is recorded using the effective
interest rate (EIR).

e. Rental income

Rental income arising from operating leases or on
investment properties is accounted for on a straight¬
line basis over the lease terms and is included in
other non-operating income in the statement of
profit and loss.

f. Insurance Claims

Insurance claims are accounted for as and when
admitted by the concerned authority.

g. Dividend Income

Dividend income on investments is recognised when
the right to receive dividend is established.

h. Other Income

Other Income is accounted for on accrual basis
except, where the receipt of income is uncertain.

4.12. Employee Benefits

Short Term Employee Benefits

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.

Long-Term employee benefits

Compensated expenses which are not expected to occur
within twelve months after the end of period in which the
employee renders the related services are recognized as a
liability at the present value of the defined benefit obligation
at the balance sheet date.

Post-employment obligations

i. Defined contribution plans

Provident Fund and employees’ state
insurance schemes

All employees of the Company are entitled to
receive benefits under the Provident Fund, which is
a defined contribution plan. Both the employee and
the employer make monthly contributions to the
plan at a predetermined rate (presently 12%) of the
employees’ basic salary. These contributions are
made to the fund administered and managed by the
Government of India. In addition, some employees
of the Company are covered under the employees’
state insurance schemes, which are also defined
contribution schemes recognized and administered
by the Government of India.

The Company’s contributions to both these schemes
are expensed in the Statement of Profit and Loss.
The Company has no further obligations under these
plans beyond its monthly contributions.

ii. Defined benefit plans
Gratuity

The Company provides for gratuity obligations through
a defined benefit retirement plan (the ‘Gratuity Plan’)
covering all employees. The Gratuity Plan provides a
lump sum payment to vested employees at retirement
or termination of employment based on the respective
employee salary and years of employment with the
Company. The Company provides for the Gratuity
Plan based on actuarial valuations in accordance with
Indian Accounting Standard 19 (revised), “Employee
Benefits”. The Company makes annual contributions
to the Life Insurance Corporation of India for the
Gratuity Plan in respect of employees. The present
value of obligation under gratuity is determined
based on actuarial valuation using Project Unit Credit
Method, which recognizes each period of service
as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to
build up the final obligation.

Defined retirement benefit plans comprising of gratuity,
un-availed leave, post-retirement medical benefits
and other terminal benefits, are recognized based on
the present value of defined benefit obligation which
is computed using the projected unit credit method,
with actuarial valuations being carried out at the end
of each annual reporting period. These are accounted
either as current employee cost or included in cost of
assets as permitted.

Leave Encashment

The company has provided for the liability at period
end on account of un-availed earned leave as
per the actuarial valuation as per the Projected
Unit Credit Method.

iii. Actuarial gains and losses are recognized in OCI as
and when incurred.

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.

Remeasurement, comprising actuarial gains and
losses, the effect of the changes to the asset ceiling
(if applicable) and the return on plan assets (excluding
net interest as defined above),are recognized in
other comprehensive income except those included
in cost of assets as permitted in the period in which
they occur and are not subsequently reclassified to
profit or loss.

The retirement benefit obligation recognized in the
Standalone Financial Statements represents the
actual deficit or surplus in the Company’s defined
benefit plans. Any surplus resulting from this
calculation is limited to the present value of any
economic benefits available in the form of reductions
in future contributions to the plans.

Termination benefits

Termination benefits are recognized as an expense in
the period in which they are incurred.

4.13.Employee Share Based Payment

Equity- settled share- based payments to employees are
measured at the fair value of the employee stock options at
the grant. The fair value determined at the grant date of the
equity- settled share - based payments is amortised over the
vesting period, based on the Company’s estimate of equity
instruments that will eventually vest, with a corresponding
increase in equity. At the end of each reporting period,
the Company revises its estimate of the number of equity
instruments expected to vest. The impact of the revision of
the original estimates, if any, is recognised in the Statement
of Profit and Loss such that the cumulative expense reflects
the revised estimate, with a corresponding adjustment to
the Share based payment reserve outstanding.

The Company measures the cost of equity- settled
transactions with employees using Black- Scholes model
to determine the fair value of the liability incurred on the
grant date. Estimating fair value for share- based payment
transactions require determination of the most appropriate
valuation model, which is dependent on the terms and
conditions of the grant.

This estimate also requires determination of the most
appropriate inputs to the valuation model including the
expected life of the share option, volatility and dividend
yield and making assumptions about them.

The dilutive effect, if any outstanding options is reflected
as additional share dilution in computation of diluted
earnings per share.

4.14. Leases

As a lessee

The Company’s lease asset classes primarily consist of
leases for land and buildings. The Company assesses
whether a contract contains a lease, at 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:

i. the contract involves the use of an identified asset

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

iii. the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the
Company recognizes a right-of-use asset (“ROU”) and a
corresponding lease liability for all lease arrangements in
which it is a lessee, except for leases with a term of twelve
months or less (short-term leases) and low value leases.
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.

Certain lease arrangements include the options to extend
or terminate the lease before the end of the lease term.
ROU assets and lease liabilities includes these options
when it is reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost,
which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct

costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and
impairment losses.

Right-of-use assets are depreciated from the
commencement date on a straight-line basis over the
shorter of the lease term and useful life of the underlying
asset. Right of use assets are evaluated for recoverability
whenever events or changes in circumstances indicate that
their carrying amounts may not be recoverable. For the
purpose of impairment testing, the recoverable amount (i.e.
the higher of the fair value less cost to sell and the value-
in-use) is determined on an individual asset basis unless
the asset does not generate cash flows that are largely
independent of those from other assets. In such cases, the
recoverable amount is determined for the Cash Generating
Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost
at the present value of the future lease payments. The
lease payments are discounted using the interest rate
implicit in the lease or, if not readily determinable, using
the incremental borrowing rates in the country of domicile
of these leases. Lease liabilities are remeasured with a
corresponding adjustment to the related right of use asset
if the Company changes its assessment if whether it will
exercise an extension or a termination option.

Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments have
been classified as financing cash flows.

The company’s lease labilities are included in Other
financial liabilities.

As a lessor

Leases for which the Company is a lessor is classified as a
finance or operating lease. Whenever the terms of the lease
transfer substantially all the risks and rewards of ownership
to the lessee, the contract is classified as a finance lease.
All other leases are classified as operating leases.

When the Company is an intermediate lessor, it accounts for
its interests in the head lease and the sublease separately.
The sublease is classified as a finance or operating
lease by reference to the right-of-use asset arising from
the head lease.

For operating leases, rental income is recognized on a
straight line basis over the term of the relevant lease.

Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition
exemption to its short-term leases (i.e., those leases
that have a lease term of 12 months or less from the
commencement date and do not contain a purchase
option). It also applies the lease of low-value assets
recognition exemption to leases that are considered to

be low value. Lease payments on short-term leases and
leases of low-value assets are recognised as expense on a
straight-line basis over the lease term.

4.15.Earning Per Share (‘EPS’)

The Company presents the Basic and Diluted EPS data.
Basic earnings per share are computed by dividing the net
profit after tax by the weighted average number of equity
shares outstanding during the period. Diluted earnings per
share is computed by dividing the profit after tax by the
weighted average number of equity shares considered for
deriving basic earnings per share and also the weighted
average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares.

4.16.Segment Reporting

Identification of segments:

Operating segments are reported in a manner consistent
with the internal financial reporting provided to the Chief
Operating Decision Maker (CODM) i.e. Chief Executive officer.
CODM monitors the operating results of all product segments
separately for the purpose of making decisions about resource
allocation and performance assessment. Segment performance
is evaluated based on profit and loss and is measured
consistently with profit and loss in the Standalone Financial
Statements. The primary reporting of the Company has been
performed on the basis of business segments. The analysis
of geographical segments is based on the areas in which the
Company's products are sold or services are rendered.

Allocation of common costs:

Common allocable costs are allocated to each segment
according to the relative contribution of each segment to
the total common costs.

Unallocated items:

The Corporate and other segment include general corporate
income and expense items, which are not allocated to any
business segment.

4.17. Government Grant

Government Grants are recognized where there is
reasonable assurance that the grant will be received and all
attached conditions will be complied with .

Government grants related to depreciable fixed assets are
treated as deferred income which has been recognised in the
profit and loss statement on a systematic and rational basis
over the useful life of the asset, i.e., such grants should be
allocated to income over the periods and in the proportions
in which depreciation on those assets is charged.

4.18. Cash & Cash Equivalents

Cash comprises cash on hand and demand deposits with
banks. Cash equivalents are short-term balances (with
an original maturity of three months or less from the date

of acquisition), highly liquid investments that are readily
convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.

4.19.Prior Period Items

The Company has adopted following materiality threshold
limits in the recognition of Prior period expenses/incomes:

4.20. Exceptional Items

Exceptional items refer to items of income or expense within
the statement of profit and loss from ordinary activities
which are non-recurring and are of such size, nature or
incidence that their separate disclosure is considered
necessary to explain the performance of the Company.