(iv) Material accounting policy information
a. Use of estimates and judgements

The preparation of standalone financial statements in
conformity with Ind AS requires management to make
judgments, estimates and assumptions that affect the
application of accounting policies and the reported
amounts of assets, liabilities, income, expenses and
other comprehensive income (OCI) that are reported
and disclosed in the standalone financial statements
and accompanying notes. Accounting estimates could
change from period to period. Actual results may differ
from these estimates.

These estimates and judgment are based on the
management's best knowledge of current events,
historical experience, actions that the Company may
undertake in the future and on various other estimates
and judgments that are believed to be reasonable under
the circumstances. Accounting estimates could change
from period to period. Accounting estimates and
underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised
in the standalone financial statements in the period
in which changes are made. In particular, information
about significant areas of estimation, uncertainty and
critical judgements in applying accounting policies that

have most significant effect of the amounts recognized
in the financial statements is included in the following
notes :

Estimates

• Recognition of deferred tax assets: availability of
future taxable profit against which tax losses carried
forward can be used

• Measurement of defined benefit obligations: key
actuarial assumptions

• Estimation of useful lives of property, plant and
equipment and intangible assets

• Recognition and measurement of leases
Judgement

• Recognition and measurement of provisions and
contingencies: key assumptions about the likelihood
and magnitude of an outflow of resources.

b. Going concern

Going concern basis of accounting used for preparation
of the accompanying standalone financial statements is
appropriate with no material uncertainty.

c. Current/non-current classification

Based on the nature of business and the time between
the acquisition of assets for processing and their
realisation in cash and cash equivalents, the Company
has ascertained its operating cycle as 12 months for
the purpose of current or non-current classification of
assets and liabilities.

d. Property, plant and equipment
Recognition, derecognition and measurement

Items of property, plant and equipment are measured
at cost, which includes capitalised borrowing costs,
less accumulated depreciation and accumulated
impairment losses, if any. Cost of an item of property,
plant and equipment comprises its purchase price,
including import duties and non-refundable purchase
taxes, after deducting trade discounts and rebates,
any directly attributable cost of bringing the item to its
working condition for its intended use. The Company
identifies and determines separate useful lives for
each major component of the property, plant and
equipment, if they have a useful life that is materially
different from that of the asset as a whole.

The cost of an item of property, plant and equipment
shall be recognized as an asset if, and only if:

(a) it is probable that future economic benefits
associated with the item will flow to the entity; and

(b) the cost of the item can be measured reliably.

An item of property, plant and equipment and any
significant part initially recognised is derecognised
upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or
loss arising on derecognition of the asset (calculated
as the difference between the net disposal proceeds
and the carrying amount of the asset) is included
in the Statement of Profit and Loss when the asset
is derecognised.

Property, plant and equipment under construction and
cost of assets not ready for use at the year-end are
disclosed as capital work-in-progress.

Subsequent expenditure

Subsequent expenditure related to an item of property,
plant and equipment is added to its book value only if
it increases the future benefits from the existing asset
beyond its previously assessed standard or period of
performance. All other expenses on existing property,
plant and equipment, including day-to-day repairs,
maintenance expenditure and cost of replacing parts,
are charged to the Statement of Profit and Loss for the
year during which such expenses are incurred.

Depreciation

Depreciation on property, plant and equipment
is provided on the straight-line method over
their estimated useful lives, as determined by the
management. Depreciation is charged on a pro-rata
basis for assets purchased/sold during the year.

Based on technical assessment made by technical
expert and management estimate, the Company have
assessed the estimated useful lives of certain property,
plant and equipment that are different from the useful
life prescribed in Schedule II to the Companies Act,
2013. The management believes that these estimated
useful lives are realistic and reflect fair approximation
of the period over which the assets are likely to be used.

The estimated useful lives of items of property, plant
and equipment are as follows:

Leasehold land is depreciated over the period of lease.

Leasehold improvements are amortised over the period
of lease or their useful lives, whichever is shorter.

Assets costing less than H 5,000 are fully depreciated
over the period of one year from the date of purchase/
acquisition and such treatment did not have any
material impact on standalone financial statements of
the Company for the current year.

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

e. impairment of financial assets

The Company recognises loss allowance for expected
credit losses on financial assets measured at amortised
cost. At each reporting date, the Company assesses
whether financial assets carried at amortised cost are
credit impaired. A financial asset is 'credit impaired'
when one or more events that have a detrimental
impact on the estimated future cash flows of the
financial asset have occurred.

Evidence that a financial asset is credit impaired
includes the following observable data:

• significant financial difficulty of the issuer or
the borrower;

• a breach of contract such as a default in payment
within the due date;

• the lender(s) of the borrower, for economic or
contractual reasons relating to the borrower's
financial difficulty, having granted to the borrower
a concession(s) that the lender(s) would not
otherwise consider;

• it is probable that the debtor will enter bankruptcy
or other financial reorganisation;

• the disappearance of an active market for a security
because of financial difficulties;

• the purchase or origination of a financial asset at a
deep discount that reflects the incurred credit losses.

The Company recognises loss allowances using the
Expected Credit Loss ('ECL') model for the financial
assets which are not fair valued through Statement of
profit and loss. Loss allowance for trade receivables
with no significant financing component is measured at
an amount equal to lifetime ECL. For all other financial
assets, expected credit losses are measured at an
amount equal to the 12-month ECL, unless there has
been a significant increase in credit risk from initial
recognition, in which case those financial assets are
measured at lifetime ECL. The changes (incremental or
reversal) in loss allowance computed using ECL model,
are recognised as an impairment gain or loss in the
Statement of profit and loss.

In all cases, the maximum period considered when
estimating expected credit losses is the maximum
contractual period over which the Company is exposed
to credit risk.

When determining whether the credit risk of a
financial asset has increased significantly since initial
recognition and when estimating expected credit
losses, the Company considers reasonable and
supportable information that is relevant and available
without undue cost or effort. This includes both
quantitative and qualitative information and analysis,
based on the Company's historical experience and
informed credit assessment and including forward
looking information. When making this assessment,
the Company uses the change in the risk of a default
occurring over the expected life of the financial asset.
To make that assessment, the Company compares
the risk of a default occurring on the financial asset
as at the balance sheet date with the risk of a default
occurring on the financial asset as at the date of initial
recognition and considers reasonable and supportable
information, that is available without undue cost or
effort, that is indicative of significant increases in credit
risk since initial recognition. The Company assumes
that the credit risk on a financial asset has not increased
significantly since initial recognition if the financial
asset is determined to have low credit risk at the
balance sheet date. The Company considers a financial
asset to be in default when the debtor is unlikely to pay
its credit obligations to the Company in full, without
recourse by the Company to actions such as realising
security (if any) is held.

f. Right-of-use assets and lease liabilities

For all existing and new contract on or after April 01
2019, the Company considers whether a contract is, or
contains a lease. A lease is defined as 'a contract, or
part of a contract, that conveys the right to use an asset
(the underlying asset) for a period of time in exchange
for consideration'.

Classification of leases

The Company enters into leasing arrangements for
various assets. The assessment of the lease is based on
several factors, including, but not limited to, transfer of
ownership of leased asset at end of lease term, lessee's
option to extend/purchase etc.

Recognition and initial measurement

At lease commencement date, the Company recognises
a right-of-use asset and a lease liability on the balance
sheet. The right-of-use asset is measured at cost,
which is made up of the initial measurement of the
lease liability, any initial direct costs incurred by the
Company, an estimate of any costs to dismantle and
remove the asset at the end of the lease (if any), and

any lease payments made in advance of the lease
commencement date (net of any incentives received).

Subsequent measurement

The Company depreciates the right-of-use assets on a
straight-line basis from the lease commencement date
to the earlier of the end of the useful life of the right-
of-use asset or the end of the lease term. The Company
also assesses the right-of-use asset for impairment
when such indicators exist.

At lease commencement date, the Company measures
the lease liability at the present value of the lease
payments unpaid at that date, discounted using the
interest rate implicit in the lease if that rate is readily
available or the Company's incremental borrowing rate.
Lease payments included in the measurement of the
lease liability are made up of fixed payments (including
in substance fixed payments) and variable payments
based on an index or rate. Subsequent to initial
measurement, the liability will be reduced for payments
made and increased for interest. It is re-measured to
reflect any reassessment or modification, or if there
are changes in in-substance fixed payments. When
the lease liability is re-measured, the corresponding
adjustment is reflected in the right-of-use asset.

The Company has elected to account for short-term
leases and leases of low-value assets using the practical
expedients. Instead of recognising a right-of-use asset
and lease liability, the payments in relation to these are
recognised as an expense in Statement of Profit and
Loss on a straight-line basis over the lease term.

g. inventories

Inventories are measured at the lower of cost and net
realisable value.

Raw materials, stock-in-trade, packing material and
stores and spares: The cost of inventories is calculated
on weighted average basis, and includes expenditure
incurred in acquiring the inventories and other costs
incurred in bringing them to their present location
and condition. Raw materials, components and other
supplies held for use in the production of finished
products are not written down below cost except in
cases where material prices have declined and it is
estimated that the cost of the finished products will
exceed their net realisable value.

Work-in-progress and manufactured finished goods:

Cost includes raw material costs and an appropriate
share of fixed production overheads based on
normal operating capacity. Net realisable value is
the estimated selling price in the ordinary course of
business, less the estimated costs of completion and
selling expenses. The net realisable value of work-in¬
progress is determined with reference to the selling
prices of related finished products.

Waste: The valuation is done at net realisable value.

The comparison of cost and net realisable value is made
on an item-by-item basis.

h. Foreign exchange transactions

Transactions in foreign currencies are initially recorded
by the Company at its functional currency spot rates at
the date the transaction first qualifies for recognition.

All monetary assets and liabilities denominated in
foreign currencies are translated into the functional
currency at the exchange rate at the reporting date.
Non-monetary assets and liabilities that are measured
at fair value in a foreign currency are translated into
the functional currency at the exchange rate when the
fair value was determined. Non-monetary assets and
liabilities if any that are measured based on historical
cost in a foreign currency are translated at the exchange
rate at the date of the transaction.

All exchange differences, except those relating to long¬
term monetary foreign currency items, are dealt with in
the Statement of Profit and Loss.

i. Employee benefits

i. Short-term employee benefits

Short-term employee benefit obligations are
measured on an undiscounted basis and are
expensed as the related service is provided. A
liability is recognised for the amount expected
to be paid e.g., under short-term cash bonus, if
the Company has a present legal or constructive
obligation to pay this amount as a result of past
service provided by the employee, and the
amount of obligation can be estimated reliably.

ii. Defined contribution plans

A defined contribution plan is a post-employment
benefit plan under which an entity pays fixed
contributions into a separate entity and will
have no legal or constructive obligation to pay
further amounts. The Company makes specified
monthly contributions towards Government
administered provident fund scheme. Obligations
for contributions to defined contribution plans
are recognised as an employee benefit expense
in Statement of Profit and Loss in the periods
during which the related services are rendered
by employees.

Prepaid contributions are recognised as an asset
to the extent that a cash refund or a reduction in
future payments is available.

iii. Defined benefit plans

A defined benefit plan is a post-employment
benefit plan other than a defined contribution plan.
The Company's net obligation in respect of defined
benefit plans is calculated separately for each plan
by estimating the amount of future benefit that
employees have earned in the current and prior
periods, discounting that amount and deducting
the fair value of any plan assets. The calculation of
defined benefit obligation is performed annually
by a qualified actuary using the projected unit
credit method.

The Company operates a defined benefit gratuity
plan in India.

Remeasurements of the net defined benefit
liability, which comprise actuarial gains and losses,
are recognised in OCI. The Company determines
the net interest expense (income) on the net
defined benefit liability or the period by applying
the discount rate used to measure the defined
benefit obligation at the beginning of the annual
period to the then net defined benefit liability,
taking into account any changes in the net defined
benefit liability during the period as a result of
contributions and benefit payments. Net interest
expense and other expenses related to defined
benefit plans are recognised in Statement of Profit
and Loss.

When the benefits of a plan are changed or when a
plan is curtailed, the resulting change in benefit that
relates to past service ('past service cost' or 'past
service gain') or the gain or loss on curtailment is
recognised immediately in Statement of Profit and
Loss. The Company recognises gains and losses on
the settlement of a defined benefit plan when the
settlement occurs.

iv. Other long-term employee benefits

The Company's net obligation in respect of
long-term employee benefits other than post¬
employment benefits is the amount of future
benefit that employees have earned in return for
their service in the current and prior periods; that
benefit is discounted to determine its present value.

The employees can carry-forward a portion of the
unutilized accrued compensated absences and
utilize it in future service periods or receive cash
compensation on termination of employment.
Since the compensated absences do not fall due
wholly within twelve months after the end of
the period in which the employees render the
related service and are also not expected to be
utilized wholly within twelve months after the end
of such period, the benefit is classified as a long¬
term employee benefit. The Company records an

obligation for such compensated absences in the
period in which the employee renders the services
that increase this entitlement. The obligation is
measured on the basis of independent actuarial
valuation using the projected unit credit method.
Re measurements as a result of experience
adjustments and changes in actuarial assumptions
are recognized in the profit or loss.

The Company has unconditional right to defer
payment of compensated absences beyond 12
months from reporting date.

j. Revenue

i. Sale of goods

Revenue is measured based on the transaction
price, which is the consideration, adjusted for
volume discounts, service level credits, price
concessions and incentives, if any, as specified
in the contract with the customer. Revenue also
excludes taxes collected from customers. There
is no significant financing component because
there isn't any difference between the amount of
promised consideration and the cash selling price.

Revenue is recognised upon transfer of control
of promised products to customers in an amount
that reflects the consideration which the Company
expects to receive in exchange for those products
or services, the associated costs and possible
return of goods can be estimated reliably, there is
no continuing effective control over or managerial
involvement with, the goods, and the amount
of revenue can be measured reliably. Where the
payment extends beyond normal credit period,
interest is recovered separately.

ii. interest income

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

k. Borrowings

Borrowings are initially recognised at fair value, net of
transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the
proceeds (net of transaction costs) and the redemption
amount is recognised in Statement of Profit and Loss
over the period of the borrowings using the effective
interest method. Fees paid on the establishment of loan
facilities are recognised as transaction costs of the loan
to the extent that it is probable that some or all of the
facility will be drawn down.

Borrowings are removed from the balance sheet when
the obligation specified in the contract is discharged,
cancelled or expired. The difference between the
carrying amount of a financial liability that has been
extinguished or transferred to another party and the

• the contractual terms of the financial asset give
rise on specified dates to cash flows that are
solely payments of principal and interest on the
principal amount outstanding.

All financial assets not classified as measured at
amortised cost as described above are measured
at FVTPL.

For all other equity instruments, the Company
decides to classify the same either as at fair value
through other comprehensive income (FVOCI)
or fair value through profit and loss (FVTPL). On
initial recognition, the Company may irrevocably
designate a financial asset that otherwise meets
the requirements to be measured at amortised
cost at FVTPL if doing so eliminates or significantly
reduces an accounting mismatch that would
otherwise arise.

Financial assets: Business model assessment

The Company makes an assessment of the objective
of the business model in which a financial asset is
held at a portfolio level because this best reflects
the way the business is managed and information
is provided to management. The information
considered includes:

• the stated policies and objectives for the
portfolio and the operation of those policies in
practice. These include whether management's
strategy focuses on earning contractual interest
income, maintaining a particular interest rate
profile, matching the duration of the financial
assets to the duration of any related liabilities or
expected cash outflows or realising cash flows
through the sale of the assets;

• how the performance of the portfolio is evaluated
and reported to the Company's management;

• the risks that affect the performance of the
business model (and the financial assets held
within that business model) and how those risks
are managed;

• how managers of the business are compensated
- e.g. whether compensation is based on the fair
value of the assets managed or the contractual
cash flows collected; and

• the frequency, volume and timing of sales of
financial assets in prior periods, the reasons
for such sales and expectations about future
sales activity.

Transfers of financial assets to third parties in
transactions that do not qualify for derecognition
are not considered sales for this purpose,
consistent with the Company's continuing
recognition of the assets.

Financial assets that are held for trading or are
managed and whose performance is evaluated on
a fair value basis are measured at FVTPL.

Financial assets: Assessment whether
contractual cash flows are solely payments of
principal and interest

For the purposes of this assessment, 'principal'
is defined as the fair value of the financial asset
on initial recognition. 'Interest' is defined as
consideration for the time value of money and
for the credit risk associated with the principal
amount outstanding during a particular period of
time and for other basic lending risks and costs
(e.g. liquidity risk and administrative costs), as
well as a profit margin.

I n assessing whether the contractual cash flows
are solely payments of principal and interest,
the Company considers the contractual terms of
the instrument. This includes assessing whether
the financial asset contains a contractual term
that could change the timing or amount of
contractual cash flows such that it would not
meet this condition. In making this assessment,
the Company considers:

• contingent events that would change the
amount or timing of cash flows;

• terms that may adjust the contractual coupon
rate, including variable interest rate features;

• prepayment and extension features; and

• terms that limit the Company's claim to cash
flows from specified assets (e.g. non-recourse
features).

A prepayment feature is consistent with the solely
payments of principal and interest criterion if the
prepayment amount substantially represents
unpaid amounts of principal and interest on the
principal amount outstanding. Additionally, for a
financial asset acquired at a significant discount or
premium to its contractual par amount, a feature
that permits or requires prepayment at an amount
that substantially represents the contractual par
amount plus accrued (but unpaid) contractual
interest is treated as consistent with this criterion
if the fair value of the prepayment feature is
insignificant at initial recognition. Financial assets
at amortised cost are measured at amortised
cost using the effective interest method. Interest
income recognised in Statement of Profit and Loss.

Subsequent measurement and sains and losses

Financial liabilities

Financial liabilities are classified as measured at
amortised cost or FVTPL. A financial liability is
classified as at FVTPL if it is classified as held for
trading. Financial liabilities at FVTPL are measured
at fair value and net gains and losses, including
any interest expense, are recognised in Statement
of Profit and Loss. Other financial liabilities are
subsequently measured at amortised cost using
the effective interest method. Interest expense
and foreign exchange gains and losses are
recognised in Statement of Profit and Loss. Any
gain or loss on derecognition is also recognised in
Statement of Profit and Loss.

n. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise
cash at banks, cheques on hand, cash on hand, short
term deposits with an original maturity of three months
or less, that are readily convertible to known amount
of cash and which are subject to an insignificant risk of
changes in value.

For the purpose of statement of cash flows, cash
and cash equivalents consist of cash and short-term
deposits, as defined above, as they are considered an
integral part of the Company's cash management.