L Summary of significant Accounting Policies
1.1 basis of Preparation
The Flhfjgclal Statements have been prepared in accordance W-th Inrian Accounting Standards (lnd-A$) notified under
section 133 of the Cpnnpatiles Act 2D13 [The Companies {Indian Accounting Standards) Rules, jiDlSJ and comply In si I
material aspects with their provisions
1.2 Classification of Assets and Liabilities
Alt assets and liabilities are classified as current or nun-current as per the Company's normal operating cycis and other
criteria set out in inc-A5 I notified under the Companies [Indian Accounting Standards} Rules, 2015. Based on the nature of
products and rhe time between the acquisition of assets for processing and their realisation m cash end cash eq u. va-ents,
twelve months has beer cons id a rod by the Company for the purpose of current/ non-current classif cation of assets ard
;abilities. Howeve- certain I abilit-es such as trade payables and some accruals tor employee and other operating costs are
part of the working capital used in the Company's normal opening cycle, acc$tilrigty classified as current liabilities
1.3 Accounting Estimates end Judgements
Due to thf nature of the Company's operations, critical accounting estimates and Judgements principally relate to tluj:
* Tangible fixed assets (ash mate useful ife);
fhe management oTthe Compeniy makes assumption about.....estimated useh lives, depreciation meHiOds m residual
values of items of property, plant and equipment could Impact I he re-, .ills of the (lonnpany eased ci past experience and
'information currently available In amition. ch? management accesses arnually whether sny ind'cations of impairment of
.ntangihle assets and tangible assets The) manage merit nt i he Company relieve that on halunrF sheet d?,fe nn impainnenl.
hnd lea Lions re exist ing
tfis management of the Co vpr,ny ec-Heve :haT the inventory balances on hand could be sold to the third parties at the
disclosed value.
1.4 Presentation oFincome statement
The income ststenfwnjj is presem.ee! |n the form based pn the nature of expense and c less i Fie e expenses according to iheir
funecion. Further doLailed analyses of expenses ere provided n notes to Lho financial siaieniants.
1.5 inventories
As per Ind A5-2, all Inventories except financial instrL.menls aro valued attos-i or Net Realisable Value whichever Ý? less. Due
botho nature of inventories being F.nancial Instruments inventories are valued as per I ltd AS 105.32.
1.6 Property. Plant and Equipment
Furniture, plant and equipment held %Ý use n the business or foi admlmstreuve purposes are stated at historical cost, or
deemed cost less accumulated depredatori and any accumulated Impairment losses. Cost comp rises cf purchase price and
any directly, attributable cout of bringing the assets tc its work mg condition for its intended use
tfUSaequejH costs are included ifi tne asset's carry ,ng amount or rerpgmseo usi separate asset, as appropnare, only wlten it
£ probable that future economic benefits associated with the item will flow to th$ group and the cos; of the item can be
measured reliably The carry-ng a mo Lint of any coma orient accounted Jo- ss a separata asset is derecognised when
replaced All other repairs and maintenance ere charged t.o profit o*- loss during the reporting period in which they ere
Incurred.
Transition tn Ind AS
On transit lor to |nd Ai, the Company has elected to continue with (he carrying value of all of Its property, plant ard
equipment recogn sed as at 1 April 2016 measured as per the previous GAAP and use that carrying value as the deeneu
cost of the property, plant and equipment
1.7 Impairment of Assets
Assets ore tested for impairment wherever events o' changes in circumstances indicate that tne cam,- ng amount may not
t!F recoverable. An impairment IdJs is recognised for the amount by which the siSel'j CS^ying amcuirl exceeds ,tS
recoverable amount. The recoverable amount Is the higher of an asset's fair value less costs of disposa1 and value in use For
the purposes of assessing impa recent, assets are grouped at the lowest leve s for which there are separately dentihabie
ca"h nflows which are largely in it f per den tor lire casti in flows from other assets or groups of assets (cafflFgeaerating snitii.
New-flnofielal assets other thari guadwi-l Chat suffurad an impairment, are reviewed foe poss b!e reversal of the I mpaSimeht
at the end of each reporting period.
1.8 Depreciation
Depredation on buildings, machinery and epuipment has been provided on Straiflflt-lUle basis over the estimated useful
Ives of tlu> respective asseLs. intangible assets are arrvirt'ssd over their estimated useful eccnarnic lives on straight line
aasis. Land and construction In progress are not decreciated. The estimated useful ives considered foi providing
depreciaTor on other substantial assets are as follows.:
Machinery -15 Years
Furniture and Fixtures -10 Years
Computers - 3 Years
Servers Component li Years
Further the residual values, estimated useful Ives and depreciation methods of each items of property, plant and
equipment are reassessed annua by.
1.9 Investments and other financial assets
(ay Classification
The Investments and other financial assets has been classified as per Company's business model for managing the
financial assets,
(b) Measurement
For assets measured at fair value, gains and losses yy II eithe-' be records*) ;n profit or :oss or other comprehensive
Income. For Investments In debt instruments, inis will depend an the business model In which the investment is
he'd For investments h acuity instruments, this will depend or whether the group has made on irrevocable e lectio r
at the time of initial recognition to account tor tF,e equity ijives:meni ai fair yalue through- other cdfitprehepsive
Income.
(b. 1} Dc bt Instruments
Subsequent measurement of debt nsrrements depends on the Company's business model for managing the
asset and flip cash- flow characteristics of the asset. There are 1 Free measurement categories into which me
Company's classifies its debt instruments-:
Amortised Cost
Assets that ar# held for collection of contractual cash ^lovys 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 is recognised in profit or loss when the asset is derecognised or
impaired interest income from there financial assets U included in finance income using the effective
interest rate method
fair value through otner comprehensive ncome (i-vuuf:
Assets that are held far collection of contractual cash flows and for sol mg the Financial assets, where the
assets cash flows represent solely payments of principal and interest, are measured at fair tragus through
other comprehensive income (FV&d) Movements in the carrying amount are taEten through OG, except for
the recognition of Impairment gains gr fosses, nt-ere?t reVennf and Foreign exchange gains and lo^ps which
are recognised n pmfiL and loss. Y/hun thn finanda asset is Ýderecognised, the cumulative gain or loss
previously recognised in QCI is reclassified from equity to profit or loss and recognised in other gains/
flosses). Interest income from Inese financial assets is Included I ft other income using the effective interest
rate method
Fair value through profit or loM:
Assets that do itoi moot the enter ia :or amortised tost or FVOci are measured at fair value through prof: or
loss. A gain or loss on o debt investment that c suaseoLently measured at feir value through prosit or toss is
recogn-sed n profit or less and presented net in the statement of profit and loss within other gains/tlesses)
in the period In which it a-ises. interest Interne from these flnaridat assets is included m other nc*me.
(b.Z) Equity instruments
The Company i subsequently measures all equity invectne-nts at fair value. Where the group's management
has elected to present fair value gains and osses on equity Investments in other comprehensive income,
there is no subsequent reclassification cf fair value gc-ins and losses to profit or loss. Dividends from such
investments are recognise-d in profit or loss as ether income when the Company's right to receive payments
is established.
Changes in the fair value of financial assets at fair value through crofitor loss are recog'n sed in other ga^n/ (losses) n
rhe Statement of profit and loss. Impairment losses (and reversal of impairment losses) on equity investments
measured ail FVOCI aye not reported separately from ottu r clitupges Intglr value,
(c) Impairment of financial assets
The group assesses cm a toward looking jasis the expecti".'. credit losses associated yvH'i its assets earned at
amortised cost and FVOf debt instruments "m- impah Ý'lent methodology appliso depends on whether there has
been i| sijJJiificanL mere asp in credit risk,
Tor trade receivables only, the grifkip appfts the j rsypliffedflpp bach permitted by i d AS 109 Financial Instruments
which requires expectc-o f&el me losses to be recogn red from nlfi jl recognition of -he receivables.
(ri) Oh recognition <jf financial assets
A financial asset is derecognised only when
- The group has transferred the rights to receive cash flows from the Financial asset ui
retains the contractual rights to receive the cash flows of the financial asset, hut assumes a contractual obligat-on
to pay the cash flows to one or more recipients.
led Income recognition
(e,l) Interest Income
Inferefl Income from dt?bt insLiumtnis is re cognised using the effect; u-s IritOfeit rare methed. Ids effective
interest rate is the rate mat exactly discounts estimated future cash receipts through the expected life or the
tins real asset to the gross carrying amount of a financial asset WhErt calculating the effective interest rate,
the group estimates the expected cash Flows by considering all the contractual terms of the Financial
instrument but doss not consider tfte expected credit lossres.
(&.2| Dividends
Dividends are recognised in prof t or loss only when the rig it to receive payment is established, it is orobable
that the econo mis benefits associate:; w th me dividend: will flovj to the group, and the amount of the
dividend tan fcs measured reliably.
i.iu (jsri and tssn hquivaierits
For ;hs pur poise; of pretention in tlie statement of cash. flows* cash arid cash equivalents Includes cash or1 'land, deposits
field at call wish financial I rs titud ens, others bo't term, f’-igh-lv liquid investmcrits with orgii'-al maturities of three months or
less that are readily cenvertiblf to Known amounts of cash and which are subject to an insign heard risk of changes In value,
and ba h£t alre r d u ftj, Rjn k d wrdrg Fts a re S hown withl n bq r row'j ng; I rt culTen t H a bl lltl&S In t ^ e b? Ian ee 5 h a e!
1.11 Trade Receivables
Trade receivao es are recognised initially at fair value and sunsequently measured at amortised cost using the effective
interest method, less provision for impairment.
1.12 Borrowings.
Borrowings tKe reccgn led initially at fair value, less attributable iransscticn costs Subsequent to initial recognition, interest
hearing burrow mgs are stated at amorti:ed nest with any difference between cost and redemption value being recognized
In the statement of profit or loss over the perod of the bonrowingi on an effective interest basis.
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