Note 1-General Information of the Company

The Company was incorporated on 21st December, 1994 as
Jaiprakash Hydro Power Limited (JHPL). Pursuant to Scheme
of Amalgamation approved by Hon'ble High Court of Himachal
Pradesh, erstwhile Jaiprakash Power Ventures Limited (JPVL)
was amalgamated into JHPL. Subsequent to the merger the
name of JHPL was changed to Jaiprakash Power Ventures
Limited w.e.f. 23rd December, 2009. The Company is engaged
in the business of generation of Thermal and Hydro Power,
cement grinding and Captive Coal Mining. The Company
owns and operates 400 MW Jaypee Vishnuprayag Hydro
Electric Plant at District Chamoli, Uttarakhand, 1320 MW
Jaypee Nigrie Super Thermal Power Plant at Nigrie, Distt.
Singrauli, M.P, 500 MW Jaypee Bina Thermal Power Plant at
Village. Sirchopi, Distt. Sagar, M.P The Company is operating
Cement Grinding Unit (2 MTPA) at Nigrie, Distt. Singrauli (M.P)
and is also engaged in Captive coal mining operations at
Amelia Coal Block allotted by Government of India for supply
of Coal to Jaypee Nigrie Super Thermal Power Plant.

The financial statements for the financial year ended March 31,
2025 were approved by the Board of Directors and authorized
for issue on 01st May, 2025

Note 2 -(A) Material Accounting Policies followed by the
Company

a) Basis of preparation of financial statements

The Company has adopted accounting policies that
comply with Indian Accounting standards (Ind AS) notified
by Ministry of Corporate Affairs vide notification dated 16
February 2015 under section 133 of the Companies Act
2013, as required by the relevant applicability provisions
prescribed in the same notification. Accounting policies
have been applied consistently to all periods presented
in these financial statements. The financial statements
referred hereinafter have been prepared in accordance
with the requirements and instructions of Schedule III
to the Companies Act 2013, amended from time to time
applicable to companies to whom Ind AS applies.

The Company's financial statements have been
prepared in accordance with the Ind AS prescribed.
The preparation of the Company's financial statements
in conformity with Indian Accounting Standard requires
the Company to exercise its judgement in the process of
applying the accounting policies. It also requires the use
of accounting estimates and assumptions that effect the
reported amounts of assets and liabilities at the date of the
financial statements. These estimates and assumptions
are assessed on an ongoing basis and are based on
experience and relevant factors, including expectations of
future events that are believed to be reasonable under the
circumstances and presented under the historical cost
convention on accrual basis of accounting.
b Basis of Measurement

These financial statements have been prepared under the
historical cost convention on the accrual basis, except
for the following assets and liabilities which have been

measured at fair value:

• Defined benefit plans- plan assets measured at fair
value,

• Derivative financial instruments,

• Certain investments

The financial statements are presented in Indian Rupees
which is the Company's functional and presentation
currency and all amounts are rounded to the nearest
Lakhs (Rs.00,000), except as otherwise stated.

c) Use of Estimates

The preparation of financial statements require estimates
and assumptions to be made that affect the reported
amount of asset and liabilities on the date of the financial
statements and the reported amount of the revenue and
the expenses during the reporting period. Difference
between the actual results and estimates are recognized
in the period in which the results are known / materialized.

d) Critical accounting estimates, assumptions and
judgments

Revenue recognition

Revenue from sale of electrical energy are accounted for
in accordance with provisional/multi-year tariff orders and
sometime based on past provisional approved/notified
tariff rates determined by regulator which are subject to
true up. The method of determining such tariff is complex
and judgmental and requires estimates and assumptions
with respect to the annual capacity charges consisting of
depreciation, interest on loan, return on equity, interest on
working capital and operation & maintenance expenses
etc. which may vary and require adjustments at the time of
true up and may have significant impact on the revenue.

Property, plant and equipment

External advisor and/or internal technical team assesses
the remaining useful life and residual value of property,
plant and equipment. Management believes that the
assigned useful lives and residual values are reasonable.

Intangibles

Internal technical and user team assess the remaining
useful lives of Intangible assets. Management believes
that assigned useful lives are reasonable. All Intangibles
are carried at net book value on transition.

Mine restoration obligation

In determining the cost of the mine restoration obligation
the Company uses technical estimates to determine the
expected cost to restore the mines and the expected
timing of these costs.

Liquidated damages

Liquidated damages payable or receivable are estimated
and recorded as per contractual terms/management
assertion;estimate may vary from actuals as levy by
customer/vendor.

Impairment of Investments in subsidiaries

At the end of each reporting period, the Company reviews

the carrying amounts of its investments in subsidiaries
when there is an indication for impairment. If the
recoverable amount is less than its carrying amount, the
impairment loss is accounted for.

Other estimates

The Company estimates the un-collectability of accounts
receivable by analyzing historical payment patterns,
customer concentrations, customer credit-worthiness
and current economic trends. If the financial condition of
a customer deteriorates, additional allowances/ provision
may be required. Similarly, the Company provides for
inventory obsolescence, excess inventory and inventories
with carrying values in excess of net realizable value
based on assessment of the future demand, market
conditions and specific inventory management initiatives.
In all cases inventory is carried at the lower of historical
cost and net realizable value.

e) Revenue

Revenue towards satisfaction of a performance obligation
is measured and recognized at transaction price, when
the control of the goods or services has been transferred
to customers net of returns and allowances, trade
discounts and volume rebates, excluding taxes or duties
collected on behalf of the government.

Contract assets: A contract asset is the right to
consideration in exchange for goods or services
transferred to the customer. If the Company performs by
transferring goods or services to a customer before the
customer pays consideration or before payment is due, a
contract asset is recognised for the earned consideration.
Trade Receivable: A receivable is recognised when
the goods are delivered and to the extent that it has an
unconditional contractual right to receive cash or other
financial assets (i.e., only the passage of time is required
before payment of the consideration is due).

400 MW Jaypee Vishnuprayag HEP : Revenue from sale
of electrical energy is accounted for on the basis of sale to
Uttar Pradesh Power Corporation Limited (UPPCL) as per
Tariff approved by Uttar Pradesh Electricity Regulatory
Commission (UPERC) in accordance with the provisions
of Power Purchase Agreement dated 16.01.2007,
executed between the Company and UPPCL for 30
years comprising of expenditure on account of operation
and maintenance expenses, financing cost, taxes and
assured return on regulator approved equity. Income on
Generation based incentive is accounted on accrual basis
considering eligibility for project for availing the incentive.
500 MW Jaypee Bina Thermal Power Plant: Revenue
from sale of electrical energy is accounted for on the
basis of sale to Madhya Pradesh Power Management
Company Limited (MPPMCL) as per Tariff approved by
Madhya Pradesh Electricity Regulatory Commission
in accordance with the provisions of Power Purchase
Agreement dated 05.01.2011, executed between the
Company and MPPMCL to the extent of 65% of installed
capacity on regulated tariff basis for 25 years comprising

of expenditure on account of fuel cost, operation and
maintenance expenses, financing cost, taxes and assured
return on regulator approved equity and 5% of net power
generation on variable charge basis for life of Project and
balance on merchant basis.

1320 MW Jaypee Nigrie Super Thermal Power Plant:

Revenue from sale of electrical energy is accounted for on
the basis of sale to Madhya Pradesh Power Management
Company Limited (MPPMCL) as per Tariff approved by
Madhya Pradesh Electricity Regulatory Commission
in accordance with the provisions of Power Purchase
Agreement dated 05.01.2011 executed between the
Company and MPPMCL to the extent of 30% of installed
capacity on regulated tariff basis for 20 years comprising
of expenditure on account of fuel cost, operation and
maintenance expenses, financing cost, taxes and assured
return on regulator approved equity and 7.50% of the total
net power generation on variable charge basis for the life
of Project and balance on merchant basis.

Further, any surplus/shortfall that may arise on account
of true-up by respective State Regulatory Commissions
under the aforesaid Tariff Regulations/Tariff Orders is
made after the completion of such true-up and same
is adjusted in revenue of the year in which order been
passed/communicated.

The Company has recognize Delayed Payment Surcharge
on accrual basis based on contractual terms and an
assessment of certainty of realization.

Revenue from sale of sand in recognized when sand is
delivered/handed over to the customer.

Gross Revenue from operations comprises of sale of
power, sale of sand and cement and other operating
income. Sale of cement, sale of sand and captive transfer
of coal excludes Goods and Service Tax (GST) which is
received by the Company on behalf of the government.
Revenue from sale of Verified Emission Reductions
(VERs) is accounted for on receipt basis.

Sales of Fly Ash is net of GST and exclusive of self¬
consumption.

Insurance claims are accounted for on receipt basis or as
acknowledged by the insurance Company.

Advance against depreciation claimed/ to be claimed as
part of tariff in terms of PPA (in respect of Vishnuprayag
HEP) during the currency of loans to facilitate repayment
installments is treated as 'Deferred Revenue'. Such
Deferred Revenue is included in Sales in subsequent
years. Also effect on sales due to fuel price adjustment in
respect of PPA's has been considered in sales.

Interest Income is recognized using the effective interest
rate (EIR). EIR is the rate that exactly discounts the
estimated future cash flows over the expected life of
financial instrument, to the gross carrying amount of the
financial assets or to the amortised cost of the financial
liability.

Dividend income is recognized when the Company's right
to receive the payment is established, which is generally

when shareholders approve the dividend.

Inter Divisional Transfer/ Captive sales: Captive sales
in regard to Coal produced from Captive Mine to be
utilized for generation of power are transferred at cost.

The value of inter-divisional transfer and captive sales is
netted off from sales and corresponding cost under cost
of materials consumed. The same is shown as a contra
item in the statement of profit and loss.

f) Property, Plant and Equipment (PPE)

PPE are stated at cost, net of accumulated depreciation
and accumulated impairment losses, if any.

The initial cost of PPE is cost of acquisition or construction
inclusive of freight, erection & commissioning charges
and any directly attributable costs of bringing an asset
to working condition and location for its intended use,
including borrowing costs relating to the qualified asset
over the period upto the date the asset is ready to
commence commercial production. The Company has
availed the exemption available in IndAS 101, to continue
capitalization of foreign currency fluctuation on long
term foreign currency monetary liabilities outstanding on
transition date.

The carrying amount of a property, plant and equipment
is de-recognised when no future economic benefits are
expected from its use or on disposal.

Depreciation on property, plant and equipment is
provided on straight line method based on estimated
useful life of assets as prescribed in part C of schedule II
to the Companies Act, 2013

The property, plant and equipment acquired under
finance leases, if any, is depreciated over the asset's
useful life or over the shorter of the asset's useful life and
the lease term if there is no reasonable certainty that the
Company will obtain ownership at the end of the lease
term.

Freehold land is not depreciated.

g) Intangible Assets

Intangible assets acquired separately are measured on
initial recognition at cost less accumulated amortisation
and accumulated impairment losses, if any.

The cost of an intangible asset includes purchase cost
(net of rebates and discounts), including any import duties
and non-refundable taxes, and any directly attributable
costs on making the asset ready for its intended use.

Cost of acquisition of coal mine & other mine related
expenditure are amortised on the basis of the balance life
of the Project. The cost of intangible assets are amortized

on a straight line basis over their estimated useful life as
per the schedule II of Companies Act 2013 and in case
the estimated useful life is more than the mining period
the same is depreciated over the lease period of mine

The amortisation period and method are reviewed at least
at each financial year end. If the expected useful life of the
asset is significantly different from previous estimates, the
amortisation period is changed accordingly.

An intangible asset is derecognised on disposal, or when
no future economic benefits are expected from use. Gains
and losses arising from de-recognition of an intangible
asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset
are recognised in the statement of profit and loss when
the asset is de-recognised or on disposal.

Mine closure expenses are capitalized in Mining cost and
are amortised on the basis of the lease period of mine.

Provision of Mine closure expenses is made as per
guidelines from Ministry of Coal, Government of India and
are amortised on the basis of the lease period of mine.

h) Intangible assets under development

Mines development expenditure incurred in respect of
new coal mine are shown under ‘Intangible assets under
development'.

On mine being ready for intended use, this amount is
transferred to appropriate head under intangible assets.

Development expenditure incurred on an individual
project is recognized as an intangible asset when the
Company can demonstrate all the following:

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

• Its intention to complete the asset

• Its ability to use or sell the asset

• How the asset will generate future economic benefits

• The availability of adequate resources to complete
the development and to use or sell the asset

• The ability to measure reliably the expenditure
attributable to the intangible asset during
development.

i) Impairment

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 groups
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 taken into account. If no such
transactions can be identified, an appropriate valuation
model is used. These calculations are corroborated by
valuation multiples, quoted share prices for publicly
traded companies or other available fair value indicators.

For assets other than goodwill, an assessment is made
at each reporting date to determine whether there is an
indication that previously recognised impairment losses
no longer exist or have decreased. If such indication
exists, the Company estimates the asset's or CGU's
recoverable amount. A previously recognised impairment
loss 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 recognised.
The reversal is limited so that the carrying amount of
the asset does not exceed its recoverable amount, nor
exceed the carrying amount that would have been
determined, net of depreciation, had no impairment
loss been recognised for the asset in prior years. Such
reversal is recognised in the statement of profit or loss
unless the asset is carried at a revalued amount, in which
case, the reversal is treated as a revaluation increase.

Goodwill is tested for impairment as at each Balance
Sheet date and when circumstances indicate that the
carrying value may be impaired.

Impairment is determined for goodwill by assessing the
recoverable amount of each CGU (or group of CGUs) to
which the goodwill relates. When the recoverable amount
of the CGU is less than its carrying amount, an impairment
loss is recognised. Impairment losses relating to goodwill
cannot be reversed in future periods.

Intangible assets with indefinite useful lives are tested for
impairment annually as at each Balance sheet date at
the CGU level, as appropriate, and when circumstances
indicate that the carrying value may be impaired.

When an impairment loss subsequently reverses, the
carrying amount of the asset (or a cash-generating unit)
is increased to the revised estimate of its recoverable
amount, but so that the increased carrying amount does
not exceed the carrying amount 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 immediately
in profit or Loss.

j) Expenditure during construction period

Assets in the course of construction are capitalized in the
assets and treated as capital work in progress and upon
commissioning of project the assets are capitalised and
transferred to appropriate category of PPE. At the point
when an asset is operating at management's intended
use, the cost of construction is transferred to appropriate
category of PPE.

k) Inventories:-

Inventories are valued at the lower of cost or net realizable
value. Cost of Inventories comprises of cost of purchase,
cost of conversion and other costs incurred in bringing
the inventories to their present location and condition.
Cost is determined on the following basis:-

• Raw material, construction materials, stores &spares,
packing materials, operating stores and supplies is
determined on weighted average basis.

• Material-in-transit is valued at cost.

• Finished goods and work in progress - cost includes
cost of direct materials and labour and a systematic
allocation of fixed and variable production overheads
that are incurred in converting materials into finished
goods.

Overburden Removal (OBR) Expenses

In coal mining, cost of OBR is charged on technically
evaluated average ratio (COAL: OB) with due adjustment
for advance stripping and ratio-variance account after the
mine become operational. Net of balances of advance
stripping and ratio variance at the Balance Sheet date is
shown as cost of removal of OB under the head for Work
in Progress in inventories.

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

l) Foreign Exchange Transactions

These financial statements are presented in Indian rupees
(INR), which is the Company's functional currency.

Transactions in foreign currency are recorded on initial
recognition at the spot rate prevailing at the time of the
transaction.

At the end of each reporting period

• Monetary items (Assets and Liabilities) denominated
in foreign currencies are retranslated at the rates
prevailing at that date.

• Non-monetary items carried at fair value that are
denominated in foreign currencies are retranslated
at the rates prevailing at the date when the fair value
was determined.

• Non-monetary items that are measured in terms
of historical cost in a foreign currency are not
retranslated

Exchange differences on monetary items are recognised
in profit or loss in the period in which they arise except for:

i. Exchange differences on foreign currency
borrowings relating to assets under construction
for future productive use, which are included in
the cost of those assets when they are regarded
as adjustment to interest costs on those foreign
currency borrowings in respect of Rate regulated
assets.

ii. The exchange differences arising on reporting of
long term foreign currency monetary items at rates
different from those at which they were initially
recorded in so far as they relate to the acquisition
of depreciable capital assets are shown by addition
to/deduction from the cost of the assets as per
exemption provided under IND AS 21 read along
with Ind AS 101 appendix ‘D' clause-D13AA.

m) Borrowing Cost

Borrowing costs specifically relating to the acquisition or
construction of a qualifying asset that necessarily takes
a substantial period of time to get ready for its intended
use are capitalized as part of the cost of the asset. All
other borrowing costs are charged to statement of profit
& loss account in the period in which it is incurred except
loan processing fees which is recognized as per Effective
Interest Rate method. Borrowing costs consist of interest
and other costs that Company incurs in connection with
the borrowing of funds. Borrowing cost also includes
exchange differences to the extent regarded as an
adjustment to the borrowing costs.

n) Employee Benefits

The undiscounted amount of short-term employee
benefits i.e. wages and salaries,bonus, incentive and
annual leave etc. expected to be paid in exchange for
the service rendered by employees are recognized as
an expense except in so far as employment costs may
be included within the cost of an asset during the period
when the employee renders the services.

Retirement benefit in the form of provident fund and
pension contribution is a defined contribution scheme
and is recognized as an expense except in so far as
employment costs may be included within the cost of an
asset.

Gratuity and leave encashment is a defined benefit
obligation. The liability is provided for on the basis of
actuarial valuation made at the end of each financial year.
The actuarial valuation is done as per Projected Unit
Credit method.

Re measurements, comprising of actuarial gains and
losses, the effect of the asset ceiling, excluding amounts
included in net interest on the net defined benefit liability

and the return on plan assets (excluding amounts
included in net interest on the net defined benefit liability),
are recognised immediately in the balance sheet with a
corresponding debit or credit to profit or loss through OCI
in the period in which they occur. Re measurements are
not reclassified to profit or loss in subsequent periods.

o) Tax Expenses

Income Tax expense comprises of current tax and
deferred tax charge or credit. Provision for current tax
is made with reference to taxable income computed for
the financial year for which the financial statements are
prepared by applying the tax rates as applicable.

Current Tax- Current Income tax relating to items
recognized outside the profit and loss is recognized
outside the profit and loss (either in other comprehensive
income or in other component of equity)

MAT- Minimum Alternate Tax (MAT) paid in a year is
charged to the Statement of Profit and Loss as current tax.
The Company recognizes MAT credit available as an asset
only to the extent there is convincing evidence that the
Company will pay normal income tax during the specified
period, i.e., the period for which MAT Credit is allowed
to be carried forward. In the year in which the Company
recognizes MAT Credit as an asset in accordance with
the Guidance Note on Accounting for Credit Available in
respect of Minimum Alternate Tax under the Income Tax
Act, 1961, the said asset is created by way of credit to the
statement of Profit and Loss and shown as “MAT Credit
Entitlement.” The Company reviews the “MAT Credit
Entitlement” asset at each reporting date and writes
down the asset to the extent the Company does not have
convincing evidence that it will pay normal tax during the
sufficient period.

Deferred Tax: - Deferred tax is provided using the
balance sheet approach on temporary differences at
the reporting date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting
purpose at reporting date i.e. timing difference between
taxable income and accounting income. Deferred income
tax assets and liabilities are measured using tax rates
and tax laws that have been enacted or substantively
enacted by the balance sheet date and are expected
to apply to taxable income in the years in which those
temporary differences are expected to be recovered or
settled. The effect of changes in tax rates on deferred
income tax assets and liabilities is recognized as income
or expense in the period that includes the enactment or
the substantive enactment date. A deferred income tax
asset is recognized to the extent that it is probable that
future taxable profit will be available against which the
deductible temporary differences and tax losses can be
utilized.

The carrying amount of deferred tax assets is reviewed
as at each balance sheet date and reduced to the extent
that it is no longer probable that sufficient taxable profit
will not be available against which deferred tax asset

to be utilized. Unrecognized deferred tax assets are re¬
assessed at each reporting date and are recognized to
the extent that it has become probable that future taxable
profits will allow the deferred tax asset to be recovered.

Deferred tax assets are recognized for the unused tax
credit to the extent that it is probable that taxable profits
will be available against which the losses will be utilized.
Significant management judgement is required to
determine the amount of deferred tax assets that can be
recognized, based upon the likely timing and the level of
future taxable profits.

p) Leases

Right of Use Assets

The Company recognizes a right-of-use asset, on a lease-
by-lease basis, to measure that right-of-use asset an
amount equal to the lease liability, adjusted by the amount
of any prepaid or accrued lease payments relating to that
lease recognized in the balance sheet immediately before
the date of initial application.

The cost of right-of-use assets includes the amount of
lease liabilities recognized. Initial direct costs incurred and
lease payments made at or before the commencement
date less any lease incentives received, the recognized
right-of-use assets are depreciated on a straight-line
basis over the shorter of its estimated useful life and the
lease term. Right-of-use assets are subject to impairment
test.

Lease Liabilities

The Company recognize a lease liability at the present
value of the remaining lease payments, discounted using
the lessee's incremental borrowing rate

The lease payments include fixed payments (including
in-substance fixed payments) less any lease incentives
receivable, variable lease payments that depend on a
lease by lease basis

In calculating the present value of lease payments, the
Company uses the incremental borrowing rate at the
lease commencement date if the interest rate implicit in
the lease is not readily determinable.

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

Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability
takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must be
accessible by the Company. The fair value of an asset or
a liability is measured using the assumptions that market
participants would use when pricing the asset or liability,
assuming that market participants act in their economic
best interest.

A fair value measurement of a non-financial asset takes
into account a market participant's ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant that
would use the asset in its highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the use
of unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows,
based on the lowest level input that is significant to the
fair value measurement as a whole:

• Level 1 - Quoted (unadjusted) market prices in active
markets for identical assets or liabilities

• Level 2 - Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is directly or indirectly observable

• Level 3 - Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is unobservable.

For assets and liabilities that are recognised in the
financial statements on a recurring basis, the Company
determines whether transfers have occurred between
levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the
fair value measurement as a whole) at the end of each
reporting period.

For the purpose of fair value disclosures, the Company
has determined classes of assets Pliabilities on the basis
of the nature, characteristics and the risks of the asset
or liability and the level of the fair value hierarchy as
explained above.

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.

A. Recognition

The Company recognizes financial assets and
financial liabilities when it becomes a party to the
contractual provisions of the instrument

B. Measurement

i) Financial assets

A financial asset is measured at

- amortised cost or

- fair value either through other compressive
income or through profit or loss

ii) Financial liability

A financial liabilities is measured at

- amortised cost using the effective interest
method or

- fair value through profit or loss.

iii) Initial recognition and measurement:-

All financial assets are measured (except trade
receivable that does not contain significant financing
component) at its fair value plus, in the case of a
financial asset not at fair value through profit or loss,
transaction costs that are directly attributable to the
acquisition of the financial asset. Transaction costs
of financial assets carried at fair value through profit
or loss are expensed in profit or loss.

At initial recognition, all financial liabilities other than
fair valued through profit and loss are recognised
initially at fair value less transaction costs that
are attributable to the issue of financial liability.
Transaction costs of financial liability carried at fair
value through profit or loss is expensed in profit or
loss

iv Subsequent measurement

Financial assets as subsequent measured
at amortised cost or fair value through other
comprehensive income (FVOCI) or fair value
through profit or loss (FVTPL) as the case may
be.

Financial liabilities as subsequent measured at
amortised cost or fair value through profit or loss.

C. Financial assets

i) Trade Receivables:-

Trade receivables are the contractual right to receive
cash or other financial assets. Trade receivables

are recognized initially at transaction value except
trade receivable that contains significant financing
component that are subsequently measured at
amortised cost using the effective interest method,
less provision for impairment. Expected credit loss is
the difference between all contractual cash flows that
are due to the Company and all that the Company
expects to receive (i.e. all cash shortfall), discounted
at the effective interest rate.

ii) Equity investments

Investment in Subsidiary, associates & Joint
venture

Investment in Subsidiary, associates & Joint venture
is carried at cost as per IndAS 27

Other equity

All other equity investments in scope of Ind AS 109
are measured at fair value. Equity instruments which
are held for trading and contingent consideration
recognised by an acquirer in a business combination
to which Ind AS103 applies are classified as at FVTPL.
For all other 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 Fair value to other comprehensive
income (FVTOCI), then all fair value changes on the
instrument, excluding dividends, are recognized in
the OCI. There is no recycling of the amounts from
OCI to P&L, even on sale of investment. However,
the Company may transfer the cumulative gain or
loss within equity.

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

D. Cash and cash Equivalents:-

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

E. Impairment of Financial Assets:-

The Company recognizes loss allowances using the
expected credit loss (ECL) model for the financial
assets which are not fair valued through profit or 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
are measured at lifetime ECL. The amount of expected
credit losses (or reversal) that is required to adjust the
loss allowance at the reporting date to the amount that is
required to be recognised is recognized as an impairment
gain or loss in profit or loss.

F. Financial liabilities

i) Trade payables

Trade payables represent liabilities for goods and
services provided to the Company prior to the end of
financial year and which are unpaid. Trade payables
are presented as current liabilities unless payment
is not due within 12 months after the reporting
period or not paid/payable within operating cycle.
They are recognised initially at their fair value and
subsequently measured at amortised cost using the
effective interest method.

ii) 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 profit or 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.

Borrowings are classified as current liabilities unless
the Company has an unconditional right to defer
settlement of the liability for at least 12 months after
the reporting period. Where there is a breach of a
material provision of a long-term loan arrangement
on or before the end of the reporting period with the
effect that the liability becomes payable on demand
on the reporting date, the Company does not
classify the liability as current, if the lender agreed,
after the reporting period and before the approval
of the financial statements for issue, not to demand
payment as a consequence of the breach.

iii) Equity Instruments:-

An equity instrument is any contract that evidences a
residual interest in the assets of Company after deducting
all of its liabilities. Equity instruments are recognised at
the proceeds received, net of direct issue costs.

Repurchase of the Company's own equity instruments
is recognised and deducted directly in equity. No gain
or loss is recognised in profit or loss on the purchase,
sale, issue or cancellation of the Company's own equity
instruments.

G. Derecognition of financial instrument:-

The Company derecognizes a financial asset when the
contractual rights to the cash flows from the financial asset

expire or it transfers the financial asset and the transfer
qualifies for derecognition under Ind AS 109. A financial
liability (or a part of a financial liability) is derecognized from
the Company's balance sheet when the obligation specified
in the contract is discharged or cancelled or expires.

H. Offsetting of financial instruments:-

Financial assets and financial liabilities are offset and the
net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised
amounts and there is an intention to settle on a net basis,
to realise the assets and settle the liabilities simultaneously

I. Financial guarantee

Financial guarantee contracts issued by the Company
are those contracts that require a payment to be made
to reimburse the holder for a loss it incurs because the
specified debtor fails to make a payment when due in
accordance with the terms of a debt instrument. 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 asper impairment
requirements of IND AS 109 and the amount recognised
less cumulative amortization.

J. Compound financial instruments

The component parts of compound financial instruments
(convertible instrument) issued by the Company are
classified separately as financial liabilities and equity
in accordance with the substance of the contractual
arrangements and the definitions of a financial liability
and an equity instrument. A conversion option that will
be settled by the exchange of a fixed amount of cash or
another financial asset for a fixed number of the Company's
own equity instruments is an equity instrument.

At the date of issue, the fair value of the liability component
is estimated using the prevailing market interest rate
for similar non-convertible instruments. This amount is
recognised as a liability on an amortised cost basis using
the effective interest method until extinguished upon
conversion or at the instrument's maturity date.

The conversion option classified as equity is determined
by deducting the amount of the liability component from
the fair value of the compound financial instrument as a
whole. This is recognized and included in equity, net of
income tax effects, and is not subsequently remeasured.
In addition, the conversion option classified as equity will
remain in equity until the conversion option is exercised,
in which case, the balance recognized directly in equity
will be transferred to other component of equity. When the
conversion option remains unexercised at the maturity
date of the convertible note, the balance recognised in
equity will be transferred to retained earnings. No gain
or loss is recognised in profit or loss upon conversion
or expiration of the conversion option. Transaction costs
that relate to the issue of the convertible instrument

are allocated to the liability and equity components in
proportion to the allocation of the gross proceeds.

Transaction costs relating to the equity component are
recognised directly in equity. Transaction costs relating
to the liability component are included in the carrying
amount of the liability component and are amortised over
the lives of the convertible instrument using the effective
interest method.

K. Derivative Financial Instruments

The Company enters into a variety of derivative financial
instruments to manage its exposure to interest rate and
foreign exchange rate risks, including foreign exchange
forward contracts, interest rate and cross currency swaps.

Derivatives are initially recognised at fair value at the date
the derivative contracts are entered and are subsequently
remeasured to their fair value at the end of each reporting
period. The resulting gain or loss is recognised in profit
or loss immediately unless the derivative is designated
and effective as a hedging instrument, in which event
the timing of the recognition in profit or loss depends on
nature of the hedging relationship and the nature of the
hedged item.

L. Embedded derivatives

Derivatives embedded in non-derivative host contracts
that are not financial assets within the scope Ind AS 109
are treated as separate derivatives when their risks and
characteristics are not closely related to those of the host
contracts and the host contracts are not measured at
FVTPL.