C. Summary of Material Accounting Policies

The following are the material accounting policies applied by the Company in
preparing its financial statements consistently to all the periods presented

I. Current versus non-current classification

The Company presents assets and liabilities in the Balance Sheet based on
current/non-current classification.

An asset is current when it is:

• Expected to be realised or intends to be sold or consumed in the normal
operating cycle;

• Held primarily for the purpose of trading;

• Expected to be realised within twelve months after the reporting period; or

• Cash and cash equivalent unless restricted from being exchanged or used to
settle a liability for at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in the normal operating cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months after the reporting period; or

• There is no unconditional right to defer the settlement of the liability for at
least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

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

Operating cycle

Operating cycle of the Company is the time between the acquisition of assets for
processing and their realization in cash or cash equivalents. As the Company's
normal operating cycle is not clearly identifiable, it is assumed to be twelve
months.

II. Use of estimates and judgments

The estimates and judgments used in the preparation of the financial
statements are continuously evaluated by the Company and are based on
historical experience and various other assumption and factors (including
expectations of future events) that the Company believes to be reasonable
under the existing circumstances. Difference between actual results estimates
are recognized in the period in which the result is known/materialized.

The said estimates are based on the facts and events, that existed as at
reporting date, or that occurred after that date but provide additional
evidence about conditions existing as at the reporting date.

III. Financial instruments

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

A. Financial asset

i. Classification and measurement

Classification

The Company classifies its financial assets, other than investments in
subsidiaries and joint venture in the following measurement categories:

a. those to be measured subsequently at fair value (either through other
comprehensive income, or through profit or loss), and

b. those measured at amortised cost.

The classification depends on the Company's business model for managing the
financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in
profit or loss or other comprehensive income. For investments in debt
instruments, this will depend on the business model in which the investment is
held. For investments in equity instruments, this will depend on whether the
Company has made an irrevocable election at the time of initial recognition to
account for the equity investment at fair value through other comprehensive
income.

The Company reclassifies debt investments when and only when its business
model for managing those assets changes.

Measurement

At initial recognition, all financial assets are measured 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.
Transaction costs of financial assets carried at fair value through profit or loss are
expensed in profit or loss. Purchase or sales of financial assets that require
delivery of assets within a time frame established by regulation or convention in
the market place (regular way trade) are recognised on trade date.

Debt instruments

Subsequent measurement of debt instruments depends on the Company's
business model for managing the asset and the cash flow characteristics of the
asset. There is only one measurement category into which the Company classifies
its debt instruments as follows:

Amortised cost:

Assets that are held for collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured at amortised
cost. A gain or loss on a debt investment that is subsequently measured at
amortised cost and is not part of a hedging relationship is recognised in profit or
loss when the asset is derecognised or impaired. Interest income from these
financial assets is included in finance income using the effective interest rate
method.

Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured
at amortised cost using the effective interest method, less provision for
impairment.

Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash
equivalents includes cash on hand, deposits held at call with financial institutions,
other short-term, highly liquid investments with original maturities of three
months or less that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value, and bank overdrafts which
are repayable on demand and form an integral part of an entity's cash
management system.

Other bank overdrafts are shown within borrowings in current liabilities in the
balance sheet.

ii. Impairment of financial assets

The Company assesses on a forward-looking basis the expected credit losses
associated with its assets carried at amortised cost. The impairment
methodology applied depends on whether there has been a significant
increase in credit risk. Note 25.2 details how the Company determines
whether there has been a significant increase in credit risk. For trade
receivables only, the Company applies the simplified approach permitted by
Ind AS 109 Financial Instruments, which requires expected lifetime losses to
be recognised from initial recognition of the receivables.

iii. Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a
group of similar financial assets) is primarily derecognised when:

• The rights to receive cash flows from the financial asset have been
transferred, or

• The Company retains the contractual rights to receive the cash flows of the
financial asset but assumes a contractual obligation to pay the cash flows to
one or more recipients.

When the Company has transferred an asset, it evaluates whether it has
transferred substantially all risks and rewards of ownership of the financial asset.
In such cases, the financial asset is derecognised. When the Company has not
transferred substantially all the risks and rewards of ownership of a financial asset,
the financial asset is not derecognised.

When the Company has neither transferred a financial asset nor retains
substantially all risks and rewards of ownership of the financial asset, the financial
asset is derecognised if the Company has not retained control of the financial
asset. When the Company retains control of the financial asset, the asset is
continued to be recognised to the extent of continuing involvement of the asset.

iv. Income recognition

Interest income from debt instruments is recognised using the effective
interest rate method. The effective interest rate is the 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. When
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 are recognised in profit or loss
only when the right to receive payment is established, it is probable that the
economic benefits associated with the dividend will flow to the Company, and
the amount of the dividend can be measured reliably.

B. Financial liabilities

i. Initial recognition and measurement:

Financial liabilities are classified, at initial recognition, as financial liabilities at
fair value through statement of Profit and Loss, loans and borrowing, payables,
or as derivatives designated as hedging instruments in an effective hedge, as
appropriate.

All financial liabilities are recognized initially at fair value and, in the case of
loans and borrowings and payables, net of directly attributable transaction
costs.

The company's financial liabilities include trade and other payables, loans and
borrowings including cash credit facilities from banks and derivative financial
instruments.

ii. Subsequent measurement:

The measurement of financial liabilities depends on their classification, as
described below:

Financial liabilities at fair value through Statement of Profit and loss. Financial
liabilities at fair value through profit and loss include financial liabilities held
for trading and financial liabilities designated upon initial recognition at fair
value through Profit and loss. Financial liabilities are classified as held for
trading if they are incurred for the purpose of repurchasing in the near term.
This category also includes derivatives financial instruments entered into by
the company that are not designated as hedging instruments in hedge
relationships as defined by Ind AS 109.

Gains or losses on liabilities held for trading are recognized in the Statement of
Profit and loss.

Financial liabilities designated upon initial recognition at fair value through
statement of profit and loss are designated as such at the initial date of
recognition and only if the criteria in Ind AS 109 are satisfied. For liabilities
designated as FVTPL, fair value gains/losses attributable to changes in own
credit risks are recognized in OCI. These gains/losses are not subsequently
transferred to P&L. However, the company may transfer the cumulative gain or
loss within equity. All other changes in fair value of such liability are recognized
in the statement of profit and loss.

Loans and borrowings:

After initial recognition, interest-bearing loans and borrowings are
subsequently measured at amortised cost using the EIR method. Gains and
losses are recognized in the statement of profit and loss when the liabilities are
derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium
on acquisition and fees or costs that are an integral part of the EIR. The EIR

amortisation is included as finance costs in the statement of profit and loss.
This category generally applies to borrowings.

Financial guarantee contracts:

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 recognized initially as a liability at fair value
through statement of profit and loss (FVTPL), 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 as per impairment requirements of Ind AS 109 and the amount
recognized less cumulative amortisation.

iii. Derecognition:

A financial liability is derecognised when the obligation under the liability is
discharged or cancelled or expires. When an existing financial liability is
replaced by another from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified, such an exchange
or modification is treated as the derecognition of the original liability and the
recognition of a new liability. The difference in the respective carrying
amounts is recognized in the statement of Profit and loss.

C. Derivative financial instrument:

The Company uses derivative financial instruments, such as forward currency
contracts, to hedge its foreign currency risks. Such derivative financial
instrument is initially recognized at fair value through consolidated statement
of Profit and loss (FVTPL) on the date on which a derivative contract is entered
into and is subsequently re-measured at fair value. Derivatives are carried as
financial assets when the fair value is positive and as financial liabilities when
the fair value is negative.

Any gains or losses arising from changes in the fair value of derivative financial
instrument are classified in the consolidated statement of Profit and loss and
reported with foreign exchange gains/(loss) not within results from operating
activities. Changes in fair value and gains/(losses) on settlement of foreign

currency derivative financial instruments relating to borrowings, which have
not been designed as hedge are recorded as finance cost.

D. 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 recognized amounts and there is an intention to settle on a net basis,
to relate the assets and settle the liabilities simultaneously.

IV. Property, plant and equipment

Property, plant and equipment are stated at cost, net of recoverable taxes less
accumulated depreciation and accumulated impairment losses, if any. The
cost comprises purchase price and borrowing costs if capitalisation criteria are
met, the cost of replacing part of the fixed assets and directly attributable cost
of bringing the asset to its working condition for the intended use. Each part of
an item of property, plant and equipment with a cost that is significant in
relation to the total cost of the item is depreciated separately. This applies
mainly to components for machinery. When significantly parts of fixed assets
are required to be replaced at intervals, the company recognizes such parts as
individual assets with specific useful lives and depreciates them accordingly.
Likewise, when a major overhauling is performed, its cost is recognized in the
carrying amount of the Property, plant and equipment as a replacement if the
recognition criteria are satisfied. Any trade discounts and rebates are
deducted in arriving at the purchase price.

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 of performance. All
other expenses on existing Property, plant and equipment, including day-to¬
day repair and maintenance expenditure and cost of parts replaced, are
charged to the statement of Profit and Loss for the period during which such
expenses are incurred.

Capital work in progress comprised of cost of Property, plant and equipment
that are yet not installed and not ready for their intended use at the balance
sheet date.

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 applicable.

The Company calculates depreciation on items of property, plant and
equipment on a straight-line method (SLM) basis as per the Companies Act
2013.

Derecognition

An item of property, plant and equipment 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.

V. Intangible Assets

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

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortised over their useful economic
lives and assessed for impairment whenever there is an indication that the
intangible asset may be impaired. The amortisation period and the
amortisation method for an intangible asset with a finite useful life are
reviewed at least at the end of each reporting period. Changes in the expected
useful life or the expected pattern of consumption of future economic benefits
embodied in the assets are considered to modify the amortisation period or
method, as appropriate, and are treated as changes in accounting estimates.
The amortisation expense on intangible assets with finite lives is recognized in
the Statement of Profit and Loss. Intangible assets with indefinite useful lives
are not amortised, but are tested for impairment annually, either individually
or at the cash generating unit level. The assessment of indefinite life is
reviewed annually to determine whether the indefinite life continues to be
supportable. If not, the change in useful life from indefinite to finite is made on
a prospective basis.

Gains or losses arising from derecognition of an intangible asset are measured
as the difference between the net disposal proceeds and the carrying amount
of the asset and are recognized in the Statement of Profit and Loss when the
asset is derecognised.

Amortisation

Software is amortized over management estimate of its useful life of 5 years.

VI. Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that
an asset may be impaired. If any indication exists, 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) net selling price and its value in use. The
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. Where the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is 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 net selling price, recent market transactions are taken into account, if
available. If no such transactions can be identified, an appropriate valuation
model is used.

VII. Inventories

Inventories of Raw material, Work-in-progress, finished goods and Stock-in-trade
are valued at the lower of cost and net realisable value. However, Raw material
and other items held for use in the production of inventories are not written down
below cost if the finished products in which they will be incorporated are expected
to be sold at or above cost.

Costs incurred in bringing each product to its present location and conditions are
accounted for as follows:

Cost of Raw Material, Packing material, Chemicals, Stores and Consumables,
Finished goods, trading and other products are ascertained on FIFO basis.

All other inventories of stores, consumables, project material at site are valued at
cost. The stock of waste is valued at net realisable value.

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.

VIII. Revenue Recognition

Revenue is recognized 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 being made. Revenue is measured at the fair value of the

consideration received or receivable. Amounts disclosed as revenue are exclusive
of Goods & Services Tax net of returns, trade discounts, rebates and amounts
collected on behalf of third parties.

The Company recognises revenue when the amount of revenue can be reliably
measured, it is probable that future economic benefits will flow to the Company
and specific criteria have been met for each of the Company's activities as
described below. The Company bases its estimates on historical results, taking
into consideration the type of customer, the type of transaction and the specifics
of each arrangement.

The specific recognition criteria described below must also be met before revenue
is recognized.

a. Sale of Goods: Revenue from the sale of goods is recognised when all the
following conditions are satisfied:

• the Company has transferred to the buyer the significant risks and rewards
of ownership of the goods;

• the Company retains neither continuing managerial involvement to the
degree usually associated with ownership nor effective control over the
goods sold;

• the amount of revenue can be measured reliably;

• it is probable that the economic benefits associated with the transaction
will flow to the Company; and

• the costs incurred or to be incurred in respect of the transaction can be
measured reliably.

b. Sale of Services

Sales are recognised upon the rendering of services and are recognised net of
Goods & Services Tax (GST).

c. Interest income

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

d. Dividend

Dividend Income is recognised when the Company's right to receive is
established which is generally occurred when the shareholders approve the
dividend.

e. All other items are recognised on accrual basis.

IX. Taxes on Income

Tax expense comprises of current income tax and deferred tax.

Current income tax

Current income tax assets and liabilities are measured at the amount expected
to be recovered from or paid to the taxation authorities. The tax rates and tax
laws used to compute the amount are those that are enacted or substantively
enacted, at the reporting date.

Current income tax relating to items recognised outside the statement of
Profit and Loss is recognised outside the statement of Profit and Loss (either in
other comprehensive income or in equity). Deferred tax items are recognised
in correlation to the underlying transaction either in OCI or directly in equity.

Management periodically evaluates positions taken in the tax returns with
respect to situations in which applicable tax regulations are subject to
interpretation and establishes provision where appropriate.

Deferred income tax

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

Deferred tax liabilities are recognized for all taxable temporary differences,
except.

• When the Deferred tax liability arises from the initial recognition of
goodwill or an asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither accounting
profit nor taxable profit or loss;

• In respect of taxable temporary differences associated with investments in
subsidiaries, when the timing of the reversal of the temporary differences
can be controlled and it is probable that the differences will not reverse in
the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences,
the carry forward of unused tax credits and any unused tax losses. Deferred tax
assets are recognized to the extent it is probable that future taxable amounts
will be available against the deductible temporary differences and the carry
forward of unused tax credits and unused tax losses can be utilised except:

• When the deferred tax asset arises relating to the deductible temporary
difference arises from the initial recognition of an asset or liability in a
transaction other than a business combination that at the time of the
transaction affects neither accounting profit nor taxable profit or loss.

• In respect of deductible temporary differences associated with
investments in subsidiaries, associates and interests in joint
arrangements, deferred tax assets are recognised only to the extent that it
is probable that the temporary differences will reverse in the foreseeable
future and taxable profit will be available against which the temporary
differences can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date
and reduced to the extent that it is no longer probable that sufficient taxable
profit will be available to allow all or part of the deferred tax assets is to be
utilised. Unrecognized deferred tax assets are re-assessed at each reporting
date and are recognised to the extent that it has become probable that future
taxable profits will allow the deferred tax asset to be recovered.

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 or
substantively enacted at the reporting date.

Deferred tax relating to items recognised outside the statement of Profit and
Loss is recognised outside the statement of Profit and Loss. Deferred tax items
are recognised in correlation to the underlying transaction either in other
comprehensive income or directly in equity.

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 and the
deferred taxes relate to the same taxable entity and the same taxation
authority.

X. Employee benefits
Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are
expected to be settled wholly within 12 months after the end of the period in
which the employees render the related service are recognized in respect of
employees services up to the end of the reporting period and are measured at
the amounts expected to be paid when the liabilities are settled. The liabilities

are presented as current employee benefit obligations in the balance sheet.
Other long-term employee benefit obligations

The liabilities for earned leave and sick leave are not expected to be settled
wholly within 12 months after the end of the period in which the employees
render the related service. They are therefore measured as the present value
of expected future payments to be made in respect of services provided by
employees up to the end of the reporting period on government bonds using
the projected unit credit method. The benefits are discounted using the
market yields at the end of the reporting period that have terms approximating
to the terms of the related obligation. Remeasurements as a result of
experience adjustments and changes in actuarial assumptions are recognised
in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the
Company does not have an unconditional right to defer settlement for at least
twelve months after the reporting period, regardless of when the actual
settlement is expected to occur.

Post-employment obligations

The Company operates the following post-employment schemes:

a) defined benefit plans such as gratuity and

b) defined contribution plans such as provident fund.

Defined benefit plan

The liability or asset recognised in the balance sheet in respect of defined
benefit gratuity plans is the present value of the defined benefit obligation at
the end of the reporting period less the fair value of plan assets. The defined
benefit obligation is calculated annually by actuaries using the projected unit
credit method.

The present value of the defined benefit obligation is determined by
discounting the estimated future cash outflows by reference to market yields
at the end of the reporting period on government bonds that have terms
approximating to the terms of the related obligation. The net interest cost is
calculated by applying the discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets. This cost is included in
employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and
changes in actuarial assumptions are recognised in the period in which they
occur, directly in other comprehensive income. They are included in retained
earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from
plan amendments or curtailments are recognised immediately in profit or loss
as past service cost.

Defined contribution plans

The Company pays provident fund contributions to publicly administered
provident funds as per local regulations. The Company has no further payment
obligations once the contributions have been paid. The contributions are
accounted for as defined contribution plans and the contributions are
recognised as employee benefit expense when they are due. Prepaid
contributions are recognised as an asset to the extent that a cash refund or a
reduction in the future payments is available.

XI. Foreign Currency Transactions

Items included in the financial statements of the Company are measured using
the currency of the primary economic environment in which the Company
operates ('The Functional Currency') The Financial statements are presented
in Indian Rupee (INR), which is the company's functional and presentation
currency.

Transactions in Foreign currency are recorded at the rate of exchange in force
at the time transactions are affected and exchange difference, if any, on
settlement of transaction is recognized in the Statement of Profit & Loss.
Monetary transaction balance other than FCDL as on date of Balance Sheet
have been reported at exchange rate on Balance Sheet date and difference
charged to the Statement of Profit & Loss. Forward contract premium paid on
forward contracts are amortized to Statement of Profit &Loss over life of such
contract.

Non-monetary items that are measured in terms of historical cost in a foreign
currency are translated using the exchange rates at the dates of the initial
transactions. Non-monetary items that are measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair
value was determined.

The gain or loss arising on translation of non-monetary items measured at fair
value is treated in line with the recognition of the gain or loss on the change in
fair value of the item (i.e., translation differences on items whose fair value

gain or loss is recognised in OCI or profit or loss are also recognised in OCI or
profit or loss, respectively).

XII. Fair value measurement

The Company measures financial instruments such as Investments at fair value
at the end of each reporting period.

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,
maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the
financial statements are categorized 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 reassessing 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.

The Company's management determines the policies and procedures for both
recurring fair value measurement, such as derivative instruments and for non¬
recurring measurement, such as asset held for sale.

External valuers are involved for valuation of significant assets, such as
properties. Involvement of external valuers is decided upon annually by the
management after discussion with and approval by the Company's Audit
Committee.

Selection criteria include market knowledge, reputation, independence and
whether professional standards are maintained. Management decides, after
discussions with the Company's external valuers, which valuation techniques
and inputs to use for each case.

At each reporting date, management analyses the movements in the values of
assets and liabilities which are required to be re-measured or re-assessed as
per the Company's accounting policies. For this analysis, management verifies
the major inputs applied in the latest valuation by agreeing the information in
the valuation computation to contracts and other relevant documents.

Management, in conjunction with the Company's external valuers, also
compares the change in the fair value of each asset and liability with relevant
external sources to determine whether the change is reasonable on yearly
basis.

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

XIM.Investment and other Financial Assets

Financial assets are recognized and measured in accordance with Ind AS 109 -

Financial Instruments. Accordingly, the company recognizes financial asset
only when it has contractual right to receive cash or other financial assets from
another Company.

a. Initial recognition and measurement

All financial assets, except investment in subsidiary are measured initially at
fair value plus, transaction costs that are attributable to the acquisition of the
financial asset. The transaction cost incurred for the purchase of financial
assets held at fair value through profit or loss is expended in the statement of
Profit and Loss immediately.

b. Subsequent measurement

For the purpose of Subsequent measurement financial assets are classified in
three categories:

• Measured at amortised cost

• Measured at fair value through other comprehensive income (FVOCI)

• Measured at fair value through Profit and Loss (FVTPL)

XIV.Debt instruments at amortised cost

Assets that are held for collection of contractual cash flows where those cash
flows represent solely payments of principal and interest are measured at
amortised cost. Financial assets are accounted for at amortized cost using the
effective interest method. This category comprises trade accounts receivable,
loans, cash and cash equivalents, bank balances and other financial assets. A
gain or loss on a debt instrument that is subsequently measured at amortized
cost and is not part of a hedging relationship is recognized in the Statement of
Profit and Loss when the asset is derecognized or impaired. Interest income
from these financial assets is included in finance income using the effective
interest rate method.

Debt instruments at fair value through other comprehensive income (FVOCI)

Assets that are held for collection of contractual cash flows and for selling the
financial assets, where the assets' cash flows represent solely payments of
principal and interest, are measured at fair value through Other
Comprehensive Income (FVOCI).

The movement in carrying amount are taken through Other Comprehensive
Income, except for the recognition of impairment gains or losses, interest
revenue and foreign exchange gains and losses which are recognized in the
Statement of Profit and Loss. When the financial asset is derecognized, the
cumulative gain or loss previously recognized in Other Comprehensive Income
is reclassified from equity to the Statement of Profit and Loss and recognized
in other gains/ (losses). Interest income from these financial assets is included
in finance income using the effective interest rate method.

Debt instruments at fair value through Profit and Loss (FVTPL)

FVTPL is a residual category for debt instruments. Any debt instrument, which
does not meet the criteria for categorisation at amortized cost or s FVTOCI, is
classified as at FVTPL. Debt instruments included within the FVTPL category
are measured at fair value with all changes recognised in the Statement of
Profit and Loss.

XV. Equity investments

All equity investments, except in subsidiary are measured at cost in scope of
Ind AS 109 are measured at fair value. 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-instruments as a FVTOCI, then all
fair value changes on the instrument, excluding dividends, are recognized in
other comprehensive income (OCI). There is no recycling of the amounts from
OCI to Statement of Profit and Loss, 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 recognised in the Statement of Profit and Loss.

Derecognition

A financial asset (or, where applicable, a part of financial asset or part of a
group of similar financial assets) is primarily derecognised (i.e. removed from
the company's Balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The company has transferred substantially all the risks and rewards of the
asset

XVI. Borrowing cost

Borrowing costs directly attributable to the acquisition, construction or
production of an asset that necessarily takes a substantial period of time to get
ready for its intended use or sale are capitalised as part of the cost of the
respective asset. All other borrowing costs are expensed in the period in which
they occur. Borrowing costs consist of interest and other costs that the
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.