2 Summary of Significant Accounting Policies

A. Basis of preparation of financial statements

The financial statements of the Company h

in India (Indian GAAP). The Company has prep^^selm ^with *e generally accepted accounting principles

accounting standards notified under section 133 ₀f the r_omn ^S^^{tements t0} comply in all material respects with the

(Accounts) Rules 2014 (as amended) andCompandS with paragraph 7 of the Companies

pi epared on an accrual basis and under the historical cost conventiM^³"^ ^RUlCS' ²°¹⁶' ^{?he financial statements} have been

B. ^ad°^P“^d *“ ^P''^Parati” «—« ^are consistent with those o, previous ,„r.

of the Company to make estimamrancTassumm^ ^SeiI^{erally acce}P^ted accounting principles requires the management

relating the L„,i„g,„, ,SmEa_s„ to STuso T ^raP”^r'^{ed d}~'°—

during the period Difference between the t i ancial statements and reported amounts of income and expenses

known / mLriali_ZTs?_Rnmranre_SHm^« h T ^eSt“^S 3re recognized in the P^{eriod in which} ‘he -suits are

estimates of the economic useful lives of property, plLS equipment^ ^PreParat,'°ⁿ °^{f theS6 finandal Statements} deludes

C. Revenue recognition

be easily measured^ ^ ^{th6 eXtent that lt:} *^S P^{robable that the} economic benefits will how to the Company and the revenue can

Compietk)n ba^Is " ^ ^ ^CUSt°^merS’ ^{iS reC}°^gniSed 35 P6r the termS °^{f contract and} Percentage of j

IlTneT T"*r h ^6XCeSS °^{f b}a"^{ingS d}°^{ne dUring the year are classified as unbii|}ed revenue while billing in excess of revenue earned is classified as unearned revenue.

Interest is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

D. Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation. Cost of an asset comprises of its purchase price and direct cost attributable to bringing the asset to its present condition for its intended use and borrowing cost on qualifying assets.

Leasehold improvements are depreciated on a straight line basis over the period of lease.

Advances paid towards acquisition of property, plant and equipment, outstanding at each balance sheet date are disclosed as capital advances.

The Management estimates the useful lives of the assets as per the indicative useful life prescribed in Schedule 11 to the Companies Act, 2013.

E. Borrowing costs

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

F. Foreign currency transactions

Transactions denominated in foreign

ZoT7r^{ntCS d0Sely Prevailin}^ - the date of the foreign currency are reportedsi ^Uon'^m^y items whth^Z ^curre"^c'“ are restated into rupee

restatements are reflected in the St-^ ^ ^{GXchange rate} at the date of the ftT™* • ^{m termS} °^{f hlstorical c}°st denominated in a 'octed in the Statement of Profit and Loss. ^transact,on. All exchange differences arising on such

^G* Warnings per share

Fo?TSo"^{,ta PCTi}°^{d a,,rib}“°^bl= “ Phar^older, b, ft.

H. Employee benefits

p^yabTeT/ ^Pr°^{Vident Pr}°^{Vident Fund} Commissioner, in accordance with the

oo “I™:^{an expense in the period in} ^ 2?r "sr °^{n p,an and contributi}°ⁿ -^id -

present value of the defined benefit obligation at the BalanceSh³"^ ^{reCOgnized in the} Balance Sheet represents the

adjustments for unrecognized past service coste TheSmnanJ's^ ^ ^Va'^Ue °^f'^{3lan assets} Of any], together with

aluation carried out as at the Balance Sheet date bv an indoJ , ^{bllgatlon ,n} respect of the plan is provided for based on actuarial oss arising from experience adjustments and changes in xctuT- f ° ^{aCtUary US,ng the} P^r°jected unit credit method. Actuarial gain or Loss in the year in which such gain or loss arise sumptions are credited or charged to the Statement of Profit and

benefits (such as nTedfcal cme]^^{5 31-6 reC}°^{rded 35 eXpenses}' Short term employee benefits including salaries, non monetary

I. Tax expense

^pres^n^the^i^^n^of'income^ax^ay^bl^irrespect'onh^texaW^^ ^ -acted rates. Current tax

computed as per section 115BAA of the Income Tax Act 1961 Deferred¹*⁰™* ^ ^ ^{report,ng penod}- Tax liability has been taxable income and accounting income for the reporting period that nr' ^{3X represents the efrfect} of timing difference between or more subsequent periods. Deferred tax assets in resn^rt f ^ T ^{one penod and is} capable of reversal in one

recognized only to the extent that there is virtual certainty that suff ^ ^{dGpreciatlon and carr}y forward of losses are assets. All other deferred tax assets ar^co^ ^{be availab}^ to realize these

taxable income will be available to realize these assets. reasonable certainty that sufficient future

j. Cash and cash equivalents

Cash and cash equivalents include cash in hand, demand deposits with banks other short tprm h\ohu, i; •a Ý

original maturity of three months or less. ^{tGrm h,ghly hquid mvestments} with

K. Impairment

At each Balance Sheet date, the Company reviews the carrying amounts of its assets to determine whether there is anv mdicat.on of .mpa.rment based on internal or external factors. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an asset's net selling Pnce and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asse^ and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset. Reversal of impairment loss is recognized immediately as income in the Statement of Profit and Loss. ^y

L Leases

Leases where the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at the lower of the fair value of the leased assets at inception and the present value of minimum lease payments. Lease payments are apportioned between the finance charge and the outstanding liability, the ^{c iarg}

is allocated to periods during the lease term at a constant periodic rate of interest on the remaining balance of tlie la )i i y

Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating Ie rentals in respect of assets taken under operating leases are charged to statement of profit an oss on a over the lease term unless other systematic basis is more representative of the time pattern o t e ene 1