(c) Material accounting policies

(i) Foreign currency

Foreign currency transactions and translation

Transactions in foreign currencies are translated
into the functional currency of the Company
at the exchange rates on the date of the
transactions. Monetary assets and liabilities
denominated in foreign currencies are translated
into the functional currency at the exchange
rate at the reporting date. Non-monetary assets
and liabilities that are measured at fair value
in a foreign currency are translated into the
functional currency at the exchange rate when
the fair value was determined. Non-monetary
assets and liabilities that are measured based
on historical cost in a foreign currency are
translated at the exchange rate at the date of the

transaction. Exchange differences are recognized
in profit or loss.

Foreign exchange gains and losses that relate to
borrowings and all other foreign exchange gains
and losses are presented in the statement of
Profit and loss on net basis.

(ii) Financial Instruments

(a) Non derivative financial instruments
consist of:

• financial assets, which include cash and
cash equivalents, trade receivables,
unbilled receivables, employee and
other advances, investments in equity
and eligible current and noncurrent
assets; and

• financial liabilities, which include
borrowings, trade payables and eligible
current and noncurrent liabilities.

Non-derivative financial instruments are
recognised initially at fair value. Subsequent
to initial recognition, non-derivative financial
instruments are measured as described below:

Cash and cash equivalents.

The Company's cash and cash equivalents consist
of cash on hand and in banks and demand
deposits with banks, which can be withdrawn
at any time, without prior notice or penalty on
the principal. For the purposes of the statement
of cash flows, cash and cash equivalents include
cash on hand, in banks and demand deposits with
banks, net of outstanding bank overdrafts that
are repayable on demand and are considered
part of the Company's cash management
system. In the balance sheet, bank overdrafts
are presented under borrowings within current
financial liabilities.

Investments

Financial instruments measured at fair value
through profit or loss ("FVTPL"):

Instruments that do not meet the amortised
cost or FVTOCI criteria are measured at FVTPL.
Financial assets at FVTPL are measured at fair
value at the end of each reporting period, with
any gains or losses arising on re-measurement
recognised in the statement of profit and loss.
The gain or loss on disposal is recognised in the
statement of profit and loss. Interest income is
recognised in the statement of profit and loss for

FVTPL debt instruments. Dividends on financial
assets at FVTPL is recognised when the Company's
right to receive dividends is established.

Investments in subsidiaries:

Investment in equity instruments of subsidiaries
are measured at cost less impairment.

Other financial assets

Other financial assets are non-derivative financial
assets with fixed or determinable payments that
are not quoted in an active market. These comprise
trade receivables, unbilled receivables, employee
and other advances and eligible current and
noncurrent assets. They are presented as current
assets, except for those expected to be realised
later than twelve months after the reporting
date which are presented as non-current assets.
All financial assets are initially recognised at fair
value and subsequently measured at amortised
cost using the effective interest method, less any
impairment losses. However, trade receivables
and unbilled receivables that do not contain a
significant financing component are measured at
the Transaction Price.

Trade payables and other liabilities

Trade payables are initially recognised at

transaction price, and subsequently carried at
transaction price.

Other liabilities are initially recognised at

transaction price, and subsequently carried
at amortised cost using the effective interest
method. For these financial instruments, the
carrying amounts approximate fair value due to
the short-term maturity of these instruments.

(b) Derecognition of financial instruments

The Company derecognises 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. If the Company
retains substantially all the risks and rewards
of a transferred financial asset, the Company
continues to recognise the financial asset and
recognises a borrowing for the proceeds received.
A financial liability (or a part of a financial
liability) is derecognised from the Company's
balance sheet when the obligation specified in
the contract is discharged or cancelled or expires.

(c) Offsetting

Financial assets and financial liabilities are offset,
and the net amount presented in the Balance
Sheet when, and only when, the Company
currently has a legally enforceable right to set off
the amounts and it intends either to settle them
on a net basis or to realize the asset and settle
the liability simultaneously.

(iii) Property, plant and equipment

i. Recognition and measurement

Items of property, plant and equipment are
measured at cost (cash price equivalent),
which includes capitalized borrowing
costs, less accumulated depreciation, and
accumulated impairment losses, if any. If
payment is deferred beyond normal credit
terms, the difference between the cash
price equivalent and the total payment
is recognized as interest over the period
of credit.

I f significant parts of an item of property,
plant and equipment have different
useful lives, then they are accounted for
as separate items (major components) of
property, plant and equipment.

Any gain or loss on disposal of an item of
property, plant and equipment is recognized
in profit or loss.

Capital work in progress is stated at cost
and includes the cost of the assets that
are not ready for their intended use at the
Balance Sheet date.

PPE is derecognized upon disposal or when
no future economic benefits are expected
from its use or disposal. Any gain or loss
arising on derecognition is recognised in
the Statement of Profit and Loss in the
same period.

ii. Subsequent expenditure

Subsequent expenditure is capitalized only
if it is probable that the future economic
benefits associated with the expenditure
will flow to the Company.

iii. Depreciation

Depreciation is calculated on cost of items
of property, plant and equipment less
their estimated residual values over their
estimated useful lives using the straight-line

method and is generally recognized in the
statement of profit and loss. Freehold land
is not depreciated.

Depreciation on property, plant and
equipment is provided over the useful life
of assets as assessed by the management
are in line with useful lives prescribed in
Schedule II to the Companies Act 2013, as
follows -

Depreciation method, useful lives and
residual values are reviewed at each financial
year-end and adjusted if appropriate.

Depreciation on additions (disposals) is
provided on a pro-rata basis i.e. from (up
to) the date on which the asset is ready for
use (disposed of).

(iv) Intangible assets

Intangible assets acquired separately are
measured at cost of acquisition. Following initial
recognition, intangible assets are carried at cost
less accumulated amortization and impairment
losses, if any. The amortization of an intangible
asset with a finite useful life reflects the manner
in which the economic benefit is expected
to be generated. The estimated useful life of
amortizable intangibles is reviewed and where
appropriate is adjusted, annually.

The estimated useful lives of the amortizable
intangible assets are considered as 10 years.

(v) Discontinued Operations and Asset classified
as held for sale.

The Company classifies non-current assets as
held for sale if their carrying amounts will be
recovered principally through a sale rather than
through continuing use.

Non-current assets held for sale are measured
at the lower of their carrying amount and the
fair value less costs to sell. Assets and liabilities
classified as held for sale are presented separately
in the balance sheet.

Property, plant, and equipment once classified as
held for sale are not depreciated or amortized.

Discontinued operation is a component of the
Company that has been disposed of or classified
as held for sale and represents a major line of
business. The results of discontinued operation
are presented separately in the Statement of
Profit and Loss for all the periods presented.

(vi) Investment property

I nvestment properties are measured initially at
cost, including transaction costs. Subsequent to
initial recognition, investment properties will be
stated at cost less accumulated depreciation and
accumulated impairment loss, if any.

The Company depreciates building component of
investment property over 30 years from the date
of original purchase.

Though the Company measures investment
property using cost-based measurement, the fair
value of investment property is disclosed in the
notes. Fair values are determined based on an
evaluation performed by an accredited external
independent valuer applying a valuation model
recommended by the International Valuation
Standards Committee.

(vii) Impairment

i. Impairment of Financial assets

The Company applies the expected credit
loss model for recognizing impairment loss
on financial assets measured at amortized
cost, trade receivables, unbilled receivables,
contract assets, and other financial assets.
Expected credit loss is the difference
between the contractual cash flows and the
cash flows that the entity expects to receive
discounted using the effective interest rate.

Loss allowances for trade receivables,
unbilled receivables, contract assets are
measured at an amount equal to lifetime
expected credit loss. Lifetime expected
credit losses are the expected credit
losses that result from all possible default
events over the expected life of a financial
instrument. Lifetime expected credit
loss is computed based on a provision
matrix which takes in to account risk
profiling of customers and historical credit
loss experience adjusted for forward
looking information.

ii. Impairment of non-financial assets

The Company's non-financial assets such as
property, plant and equipment, inventories
and deferred tax assets, are reviewed at each
reporting date to determine whether there is any
indication of impairment. If any such indication
exists, then the asset's recoverable amount
is estimated.

For impairment testing, assets that do not
generate independent cash inflows are grouped
together into cash-generating units (CGUs). Each
CGU represents the smallest group of assets
that generates cash inflows that are largely
independent of the cash inflows of other assets
or CGUs.

The recoverable amount of a CGU (or an individual
asset) is the higher of its value in use and its fair
value less costs to sell. Value in use is based on
the estimated future cash flows, 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
CGU (or the asset).

An impairment loss is recognized if the carrying
amount of an asset or CGU exceeds its estimated
recoverable amount. Impairment losses are
recognized in the statement of profit and loss.

In respect of assets for which impairment loss has
been recognized in prior periods, the Company
reviews at each reporting date whether there
is any indication that the loss has decreased or
no longer exists. An impairment loss is reversed
if there has been a change in the estimates used
to determine the recoverable amount. Such a
reversal is made only to the extent that the asset's
carrying amount does not exceed the carrying
amount that would have been determined, net
of depreciation or amortization, if no impairment
loss had been recognized.

(viii) Employee benefits

i. Short term employee benefits

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

provided by the employee, and the amount
of obligation can be estimated reliably.

ii. Post-employment benefits (defined
benefit plans)

The Company provides for retirement
benefits in the form of Gratuity. A defined
benefit plan is a post-employment benefit
plan other than a defined contribution plan.
The Company's net obligation in respect
of defined benefit plans is calculated
separately for each plan by estimating the
amount of future benefit that employees
have earned in the current and prior
periods, discounting that amount and
deducting the fair value of any plan assets.

The calculation of defined benefit obligation
is performed annually by a qualified actuary
using the projected unit credit method.
When the calculation results in a potential
asset for the Company, the recognized asset
is limited to the present value of economic
benefits available in the form of any future
refunds from the plan or reductions in
future contributions to the plan ('the asset
ceiling').

I n order to calculate the present value of
economic benefits, consideration is given
to any minimum funding requirements.

Re-measurements of the net defined
benefit liability, which comprise actuarial
gains and losses, the return on plan assets
(excluding interest) and the effect of the
asset ceiling (if any, excluding interest), are
recognized in OCI. The Company determines
the net interest expense (income) on the
net defined benefit liability (asset) for the
period by applying the discount rate used
to measure the defined benefit obligation
at the beginning of the annual period to the
then-net defined benefit liability (asset),

taking into account any changes in the
net defined benefit liability (asset) during
the period as a result of contributions and
benefit payments. Net interest expense and
other expenses related to defined benefit
plans are recognized in profit or loss.

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

iii. Defined contribution plans

The Company makes defined contribution
to Government Employee Provident Fund,
and Superannuation Scheme, which are
recognized in the Statement of Profit and
Loss on accrual basis.

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

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

(x) Income tax

Income tax comprises current and deferred tax. It
is recognised in profit or loss except to the extent
that it relates to an item recognised directly in
equity or in other comprehensive income

i. Current income tax

Tax on income for the current period is
determined on the basis of taxable income
and tax credits computed in accordance with
the provisions of the Income Tax Act,1961
and using estimates and judgments based
on the expected outcome of assessments/
appeals and the relevant rulings in the areas
of allowances and disallowances.

Current tax assets and current tax
liabilities are offset only if there is a legally
enforceable right to set off the recognized
amounts, and it is intended to realize the
asset and settle the liability on a net basis
or simultaneously.

ii. Deferred tax

Deferred income tax is provided in full,
using the balance sheet approach, on
temporary differences between the

Deferred tax assets and liabilities are offset
if there is a legally enforceable right to
offset current tax liabilities and assets, and
they relate to income taxes levied by the
same tax authority.

(xi) Provisions and Contingent Liabilities

The Company estimates the provisions that have
present obligations as a result of past events,
and it is probable that an outflow of resources
will be required to settle the obligations. These
provisions are reviewed at the end of each
reporting date and are adjusted to reflect the
current best estimates.

The Company uses significant judgement to
disclose contingent liabilities. Contingent
liabilities are disclosed when there is a possible
obligation arising from past events, the existence
of which will be confirmed only by the occurrence
or non-occurrence of one or more uncertain
future events not wholly within the control of
the Company or a present obligation that arises
from past events where it is either not probable
that an outflow of resources will be required to
settle the obligation or a reliable estimate of
the amount cannot be made. Contingent assets
are neither recognized nor disclosed in the
standalone financial statements.

(xii) Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided
to the chief operating decision maker. The Board

of directors monitors the operating results
of all segments separately for the purpose of
making decisions about resource allocation and
performance assessment. Segment performance
is evaluated based on profit and loss and is
measured consistently with profit and loss in the
Summary Statements.

The operating segments have been identified on
the basis of the nature of services. Further:

i. Segment revenue includes sales and other
income directly identifiable with / allocable
to the segment. Expenses that are directly
identifiable with / allocable to segments
are considered for determining the
segment result.

ii. Expenses which relate to the Company as
a whole and not allocable to segments are
included under unallocable expenditure.

iii. Income which relates to the Company as a whole
and not allocable to segments is included in
unallocable income.

iv. Segment assets and liabilities include those
directly identifiable with the respective
segments. Unallocable assets and liabilities
represent the assets and liabilities that relate
to the Company as a whole and not allocable to
any segment.