2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparation

The financial statements have been prepared in accordance with Indian Accounting Standards ('Ind AS') as per the
Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of the Companies Act, 2013 ('the Act')
in conformity with generally accepted accounting principles in India and other relevant provisions of the Act.

The financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities
which have been measured at fair value (refer accounting policy regarding financial instruments).

The financial statements are presented in Indian Rupees ("INR" or "'").

2.2 Estimates and Judgements

The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments
and assumptions. These estimates, judgments and assumptions effect the application of accounting policies and the
reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial
statements and reported amounts of revenues and expenses during the period. Application of accounting policies that
require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these
financial statements have been disclosed in Note 2.14. Accounting estimates could change from period to period. Actual
results may differ from those estimates. Appropriate changes in estimates are made as management becomes aware of
changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the
period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

2.3 Property, Plant and Equipment

Freehold land is carried at cost. All other items of property, plant and equipment are stated at cost less accumulated
depreciation and accumulated impairment loss, if any.

The cost of an item of property, plant and equipment comprises of its purchase price, any costs directly attributable to
its acquisition and an initial estimate of the costs of dismantling and removing the item and restoring the site on which it
is located, the obligation for which the company incurs when the item is acquired. 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 company and the cost of the item can be measured reliably. All other
repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.
Depreciation on property, plant and equipment is calculated using the straight-line method. The useful lives estimated
for the major classes of property, plant and equipment are as follows:

The useful lives have been determined based on technical evaluation done by the management's experts, which in some
cases may differ from the lives as specified by Schedule II to the Companies Act, 2013. The residual values are not more
than 5% of the original cost of acquisition of the asset including the assets as on the date of transition. The asset's residual
values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

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 de-recognition of the
asset is included in the statement of profit and loss when the asset is derecognised.

2.4 Cash and Cash Equivalent

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits maturing
within twelve months from the date of Balance Sheet, which are subject to an insignificant risk of changes in value.

2.5 Financial Instruments

A. Financial Instruments -Initial recognition and measurement

Financial assets and financial liabilities are recognised in the company's statement of financial position when
the company becomes a party to the contractual provisions of the instrument. The company determines the
classification of its financial assets and liabilities at initial recognition. All financial assets are recognised initially
at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs
that are attributable to the acquisition of the financial asset.

B. 1. Financial assets - Subsequent measurement

The Subsequent measurement of financial assets depends on their classification which is as follows:

a. Financial assets at fair value through profit or loss

Financial assets at fair value through profit and loss include financial assets held for sale in the near term and
those designated upon initial recognition at fair value through profit or loss.

b. Financial assets measured at amortised cost

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are
not quoted in an active market. Trade receivables do not carry any interest and are stated at their nominal
value as reduced by appropriate allowance for estimated irrecoverable amounts based on the ageing of the
receivables balance and historical experience. Additionally, a large number of minor receivables are grouped
into homogenous groups and assessed for impairment collectively. Individual trade receivables are written
off when management deems them not to be collectible.

c. Financial assets at fair value through OCI

All equity investments, except investments in subsidiaries, joint ventures and associates, falling within the
scope of Ind AS 109, are measured at fair value through Other Comprehensive Income (OCI). The company
makes an irrevocable election on an instrument-by-instrument basis to present in other comprehensive income
subsequent changes in the fair value. The classification is made on initial recognition and is irrevocable.

If the company decides to designate an equity instrument at fair value through OCI, then all fair value changes
on the instrument, excluding dividends, are recognized in the OCI.

B. 2. Financial assets -Derecognition

The company derecognises a financial asset when the contractual rights to the cash flows from the assets expire
or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset.

Upon derecognition of equity instruments designated at fair value through OCI, the associated fair value changes
of that equity instrument is transferred from OCI to Retained Earnings.

C. 1. Financial liabilities - Subsequent measurement

The Subsequent measurement of financial liabilities depends on their classification which is as follows:

a. Financial liabilities at fair value through profit or loss.

Financial liabilities at fair value through profit or loss include financial liabilities held for trading, if any.

b. Financial liabilities measured at amortised cost

Interest bearing loans and borrowings are subsequently measured at amortised cost using the effective
interest rate method (EIR). Amortised cost is calculated by taking into account any discount or premium on
acquisition and fee or costs that are integral part of the EIR. The EIR amortised is included in finance costs in
the statement of profit and loss.

C. 2. Financial liabilities -Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or expires.

D. OffseWng financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position,
if and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention
to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

E. Fair value measurement

The company measures certain financial instruments at fair value at each reporting date. 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 presumption that the transaction
to sell the asset or transfer the liability takes place either:

Ý In the principal market for the assets or liability or

Ý 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 to the company.

The company uses valuation technique 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.

2.6 Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured, regardless of when the payment is received. Revenue is measured at the fair value of
the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes,
duties or other charges collected on behalf of the government/authorities.

The specific recognition criteria for the various types of the company's activities are described below:

Interest income

Interest on Loan is recognised using the effective interest rate method. The effective interest rate is that rate that exactly
discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a
financial asset. While calculating the effective interest rate, the company estimates the expected cash flows by considering
all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but
does not consider the expected credit losses.

Dividends

Revenue is recognised when the Company's right to receive the payment is established.

Other Income

Other Income is accounted for on accrual basis except, where the receipt of income is uncertain.

2.7 Employee benefits

Short Term employee benefits

Liabilities for wages, salaries and other employee benefits that are expected to be settled within twelve months of rendering
the service by the employees are classified as short-term employee benefits. Such short-term employee benefits are
measured at the amounts expected to be paid when the liabilities are settled.

Post-employment benefits
(a) Defined benefit plans

The liabilities recognised in the balance sheet in respect of defined benefit plan is the value of the defined benefit
obligation related to gratuity at the end of the year.

The liabilities in respect of defined benefit plan related to gratuity is calculated on accrual basis at the end of every
year and net changes in the liability is included in employee benefit expense in the statement of profit and loss.
Payment related to defined benefit plan related to gratuity is included in employee benefit expenses in the statement
of profit & loss.

2.8 Leases

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of
time in exchange for consideration.

Company as a Lessee

The Company recognises right-to-use asset representing its right to use the underlying asset for the lease term at the
lease commencement date. The cost of the right-to-use asset measured at inception shall comprise of the amount of the
initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less
any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in
dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-
to-use assets is subsequently measured at cost less any accumulated amortisation, accumulated impairment losses, if any

and adjusted for any remeasurement of the lease liability. The right-to-use assets is amortised from the commencement
date of lease over the period of lease term or useful life of right-to-use asset.

Right-to-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be
recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.

The Company has elected not to apply the requirements of Ind AS 116 "Leases" to short term leases of all assets that
have a lease term of 12 months or less and leases for which the underlying assets is of low value. The lease payments
associated with these leases are recognized as an expense on a straight-line basis over the lease term.

The Company recorded the lease liability at the present value of total remaining lease payments discounted at the
incremental borrowing rate as on the date of commencement of lease. The lease liability is amortised during the period
of lease. Payment against lease is divided into repayment of lease liabilities and interest cost on lease liabilities.
Company as a Lessor

At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance lease. The
Company recognises lease payments received under operating leases as income on a straight-line basis over the lease
term. In case of a finance lease, finance income is recognised over the lease term based on a pattern reflecting a constant
periodic rate of return on the lessor's net investment in the lease.

2.9 Taxes

Current Tax

The current tax expense for the period is determined as the amount of tax payable in respect of taxable income for the
period, based on the applicable income tax rates.

Current tax relating to items recognised in other comprehensive income or equity is recognised in other comprehensive
income or equity, respectively.

Deferred Tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities
and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for all
deductible temporary differences and, the carry forward of unused tax credits and any unused tax losses. Deferred tax
assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, the carry forward of unused tax credits and unused tax losses can be utilised.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is
realised or the liability is settled, based on tax rates (and tax laws) that have been enacted at the reporting date.
Deferred tax relating to items recognised in other comprehensive income or equity is recognised in other comprehensive
income or equity, respectively.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets
against current tax liabilities.