Note 2 : Significant accounting policies

The significant 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, unless otherwise indicated.

Basis of preparation and presentation :

The financial statements have been prepared in accordance with the Indian Accounting
Standards (referred to as "Ind AS") prescribed under section 133 of the Companies Act, 2013
read with Companies (Indian Accounting Standards) Rules, as amended from time to time
and other relevant provisions of the Act.

The financial statements have been prepared under the historical cost convention with the
exception of certain assets and liabilities that are required to be carried at fair value by Ind AS.

a) Use of estimates and judgments

In the preparation of financial statements, the Company makes judgments in the application
of accounting policies; and estimates and assumptions which affects the carrying values of
assets and liabilities that are not readily apparent from other sources. The estimates and
associated assumptions are based on historical experience and other factors that are
considered to be relevant.

Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised and future
periods affected. In particular, information about significant areas of estimation uncertainty
and critical judgments in applying accounting policies that have the most significant effect on
the amounts recognised in the financial statements are included in the following notes:

i) Note 3.1 - Property, plant and equipment - useful life and impairment

ii) Note 5.1 - Recoverability/recognition of deferred tax assets

iii) Note 5.2 - Assets and obligations relating to employee benefits

iv) Note 5.10 - Provisions and contingent liabilities

b) Current / Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current and non¬
current classification.

An asset is treated as current when it is:

a) expected to be realised or intended to be sold or consumed in normal operating cycle;

b) held primarily for the purpose of trading;

c) expected to be realised within twelve months after the reporting period; or

d) cash or cash equivalent unless restricted from being exchanged or used to settle a
liability for

e) at least twelve months after the reporting period.

f) All other assets are classified as non-current.

A liability is treated as current when it is:

a) expected to be settled in normal operating cycle;

b) held primarily for the purpose of trading;

c) due to be settled within twelve months after the reporting period; or

d) there is no unconditional right to defer the settlement of the liability for at least twelve
months after the reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

c) Property, Plant and Equipment

All the items of property, plant and equipment are stated at cost, or deemed cost applied on
transition to Ind AS, less accumulated depreciation and accumulated impairment losses, if
any. Such cost includes purchase price, borrowing cost and any cost directly attributable to
bringing the assets to its working condition for its intended use, net charges on foreign
exchange contracts and adjustments arising from exchange rate variations attributable to the
assets. 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. All other
expenses on existing fixed assets, including day-to-day repair and maintenance expenditure
and cost of replacing parts, are charged to the statement of profit and loss for the period
during which such expenses are incurred.

Property, Plant and Equipment which are significant to the total cost of that item of Property,
Plant and Equipment and having different useful life are accounted separately. Depreciation
on Property, Plant and Equipment is provided on the straight-line method over the useful
lives of the assets estimated by the management. Depreciation is provided based on useful life
of the assets as prescribed in Schedule II to the Companies Act, 2013. Useful lives and residual
values of assets are reviewed periodically.

The residual values, useful lives and methods of depreciation of property, plant and
equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

An item of property, plant and equipment and any significant part is derecognised upon
disposal or when no future economic benefits are expected from its use or disposal. Gains or
losses arising from derecognition of a Property, Plant and Equipment 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 derecognized.

d) Intangible Assets

Software and Website costs are included in the balance sheet as intangible assets when it is
probable that associated future economic benefits would flow to the Company. In this case
they are measured initially at purchase cost and then amortised on a straight-line basis over
their estimated useful lives. All other costs on patents, trademarks and software are expensed
in the statement of profit and loss as and when incurred.

e) Investment Property

Investment properties are properties held to earn rentals and/or for capital appreciation
(including property under construction for such purposes). Investment properties are
measured initially at cost, including transaction costs. Subsequent to initial recognition,
investment properties are measured in accordance with Ind AS 16's requirements for cost
model. An investment property is derecognised upon disposal or when the investment
property is permanently withdrawn from use and no future economic benefits are expected
from the disposal. Any gain or loss arising on derecognition of the property (calculated as the
difference between the net disposal proceeds and the carrying amount of the asset) is included
in profit or loss in the period in which the property is derecognized.

f) Impairment

At each balance sheet date, the Company reviews the carrying value of its property, plant and
equipment and intangible assets to determine whether there is any indication that the carrying
value of those assets may not be recoverable through continuing use. If any such indication
exists, the recoverable amount of the asset is reviewed in order to determine the extent of
impairment loss, if any. Where the asset does not generate cash flows that are independent
from other assets, the Company estimates the recoverable amount of the cash generating unit
to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. 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 for which the estimates of future cash flows have not been adjusted.
An impairment loss is recognised in the statement of profit and loss as and when the carrying
value of an asset exceeds its recoverable amount.

Where an impairment loss subsequently reverses, the carrying value of the asset (or cash
generating unit) is increased to the revised estimate of its recoverable amount so that the
increased carrying value does not exceed the carrying value that would have been determined
had no impairment loss been recognised for the asset (or cash generating unit) in prior years.
A reversal of an impairment loss is recognised in the statement of profit and loss immediately.

g) Leases

The Company determines whether an arrangement contains a lease by assessing whether the
fulfillment of a transaction is dependent on the use of a specific asset and whether the
transaction conveys the right to control the use of that asset to the Company in return for
payment.

As a lessee

A lease is classified at the inception date as a finance lease or an operating lease. A lease that
transfers substantially all the risks and rewards incidental to ownership to the Company is
classified as a finance lease. The Company does not have any arrangement during or at the
reporting period that can be classified as finance lease. Operating lease payments are
recognised as an expense in the statement of profit and loss on a straight-line basis over the
lease term except in the case where incremental lease reflects inflationary effect in which case,
lease expense is accounted by actual rent for the period.

As a lessor

Leases in which the Company does not transfer substantially all the risks and rewards of
ownership of an asset are classified as operating leases. Rental income from operating lease is
recognised on a straight-line basis over the term of the relevant lease. Initial direct costs
incurred in negotiating and arranging an operating lease are added to the carrying amount of
the leased asset and recognised over the lease term on the same basis as rental income.
Contingent rents are recognised as revenue in the period in which they are earned.

h) Cash and Cash Equivalents

Cash and cash equivalents comprise of cash on hand, cash at banks, short-term deposits and
short term, highly liquid investments that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value.