2.3 Material accounting policies

a) Revenue Recognition
Revenue

Revenue towards satisfaction of performance obligation is measured at the amount of transaction price allocated to that
performance obligation. The transaction price of goods sold is net of variable consideration on account of various discounts and

schemes offered by the company as a part of the contract.

i) Sale of products

The company derives revenue primarily from the sale of Writing and Printing Paper and Soda Ash.

Revenue from the sale of goods is recognized at the point in time when control is transferred to the customer which is usually on
dispatch/ delivery.

Revenue is measured based on the transaction price (net of variable consideration) which is consideration, adjusted for volume
discounts, rebates, scheme allowances, price concessions, incentives, and returns, if any, as specified in the contracts with the
customers.

Revenue excludes taxes collected from customers on behalf of the government.

Due to the short nature of credit period given to customers, there is no financing component in the contract.

ii) Interest income

- Interest Income from customers is recognized on a time proportionate basis taking into account the amount outstanding and the
interest rate applicable.

- Interest Income from financial asset is recognized when it is probable that economic benefits will flow to the company and amount
of income can be measured reliably. Interest income is accrued on time basis, by reference to principal outstanding and at effective
interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of financial
asset to that asset’s net carrying amount on initial recognition.

iii) Dividend income

Dividend income from investment is recognized when the right to receive the payment is established by the reporting date and
amount of dividend can be measured reliably, the dividend does not represent a recovery of part of cost of the investment.

iv) Insurance and Other Claims

Insurance claims are recognized when no significant uncertainty exists with regard to the amount to be realized and the ultimate
collection thereof.

b) Employee Benefits

i) Short Term Employee benefit:

The short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised on an
undiscounted accrual basis during the year when the employees render the services. These benefits include performance
incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the
employee renders the related services.

Post Employment Benefit Plan

ii) Defined Contribution plan
Provident Fund:

Employees receive benefit in the form of Provident fund which is a defined contribution plan. The company has no obligation, other
than the contribution payable to the provident fund. The company recognises contribution payable to the provident fund scheme as
an expense, when an employee renders the related service.

iii) Defined Benefit Plan
Gratuity:

The Company provides for gratuity, a defined benefit retirement plan “The gratuity plan” covering eligible employees. The gratuity
plan provides for lump sum payment to vested employee at retirement, death, incapacitation or termination of employee of an
amount based on the respective employees’ salary and the tenure of employment with the company.

Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service
entitling them to the contributions.

For defined benefit retirement benefit plans, the cost of providing benefits is determined using the projected unit credit method, with
actuarial valuations being carried out at the end of each balance sheet date. Re-measurement, comprising actuarial gains and
losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected
in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Re¬
measurement recognised in other comprehensive income is reflected in retained earnings and is not reclassified to profit or loss.
Past service cost is recognised in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount
rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorised as follows:

a. service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);

b. net interest expense or income; and

c. re-measurement

The Company presents the first two components of defined benefit costs in profit or loss in the line item ’Employee benefits
expense’. Curtailment gains and losses are accounted for as past service costs.

The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the Company’s defined
benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form
of refunds from the plans or reductions in future contributions to the plans.

A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination
benefit and when the entity recognises any related restructuring costs.

iv) Other long term employee benefit
Compensated absences:

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee
renders the related services are recognised as a liability in respect of other long-term employee benefits and measured at the
present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by
employees up to the reporting date.

c) Property, Plant and Equipment

a) Freehold land is stated at historical cost and not depreciated. All other items of property, plant and equipment are stated at cost or
deemed cost applied on transition to Ind AS, less accumulated depreciation and impairment, if any.

b) On transition to Ind As, the company has elected to continue with the carrying value of all its Property, plant & equipment and
Intangible assets recognised as at 1st April, 2016 measured as per previous GAAP and used that carrying value as it’s deemed cost
of it’s Property, plant & equipment and Intangible assets.

c) The Cost of an item of Property, Plant and Equipment comprises its purchase price net of recoverable taxes where applicable and
any attributable expenditure (directly or indirectly) for bringing the asset to its working condition for its intended use and the
borrowing costs for qualifying assets and the initial estimate of restoration cost if the recognition criteria are met. the initial estimate
of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which an entity incurs
either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to
produce inventories during that period. When significant parts of plant and equipment are required to be replaced at intervals, the
Company depreciates them separately based on their specific useful lives.

An item of Property, Plant and Equipment and any significant part initially recognized is derecognised upon disposal or when no
future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset measured 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 derecognized.

The depreciation method, useful lives and residual value are reviewed periodically and at the end of each reporting period. The
company depreciates property, plant and equipment over their estimated useful lives using the straight-line method. The estimated
useful lives of assets as prescribed under Part C of Schedule II of the Companies Act 2013 except the assets costing Rs 5000/- or
below on which deprecation is charged @ 100% per annum on proportionate basis, are as follows:

Building - 30-60 years

Plant and Machinery - 15-25 years

Office Equipment - 05 years

Computer Equipment - 03 years

Furniture and fittings - 10 years

Vehicles excluding Motor cycles - 08 years

Motor cycles - 10 years

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as
capital advances under other non-current assets. Capital work in Progress includes assets not ready for their intended use and
includes related incidental expenses.

Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future economic
benefits associated with these will flow to the Company and the cost of the item can be measured reliably. Repairs and maintenance
costs are recognized as expense in the Statement of Profit and Loss as and when incurred.

The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset
and the resultant gains or losses are recognized in the statement of profit and loss.

Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under construction) less their
residual values over their useful lives, using the straight-line method.

d) Intangible assets

Intangible assets with finite useful lives that are acquired separately are stated at cost less accumulated amortisation and
accumulated impairment losses, if any. Amortisation is recognised on a straight-line basis over their estimated useful lives. The
estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in
estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are
carried at cost less accumulated impairment losses.

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or
losses arising from derecognition of an intangible asset, 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 derecognised

Estimated useful lives of the intangible assets are as follows:

Computer Softwares 6 Years

e) Impairment of property, plant and equipment and Intangible assets

Property, plant and equipment and intangible assets are evaluated for recoverability whenever events or changes in circumstances
indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the
higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not
generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined
for the CGU (Cash Generating unit) to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the statement of profit and loss is measured by the
amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is
reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount.
The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the
carrying amount that would have been determined (net of any accumulated depreciation) had no impairment loss been recognized
for the asset in prior years.

Impairment is reviewed periodically, including at each financial year end.

f) Inventories

Inventories of raw materials, stores and spares, work-in-progress and finished goods are valued at cost or net realisable value,
whichever is lower. However, materials 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. The cost in respect of the
aforesaid items of inventory is computed as under:

- In case of raw materials, at first in first out cost plus direct expenses.

- In case of stores and spares, at weighted average cost plus direct expenses.

- In case of work-in-progress, at material cost plus conversion cost depending upon the stage of completion.

- In case of finished goods, at material cost plus conversion cost, packing cost and other overheads incurred to bring the goods to
their present condition and location.

- In Case of Material in T ransit, Actual cost plus direct expenses to the extent incurred.

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

g) Government Grants

(i) The government grants are recognized only when there is reasonable assurance that the conditions attached to them will be
complied with, and the grants will be received.

(ii) Government grants in relation to fixed assets are treated as deferred income and are recognized in the statement of profit and
loss on a systematic and rational basis over the useful life of the asset.

(iii) Government grants related to revenue are recognized on a systematic basis in the statement of profit and loss over the period
necessary to match them with the related costs that they are intended to compensate.

(iv) Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving
immediate financial support to the company with no future related costs are recognized in the Statement of profit and loss in the
period in which they become receivable.

(v) Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the
same.

h) Borrowing costs

Borrowing costs that are directly attributable to the acquisition or construction of items of Property, plant and equipment which
necessarily takes substantial period of time to get ready for their intended use are capitalized as part of the cost of the asset. Other
borrowing costs are recognized as an expense in the period in which they are incurred. Borrowing cost also includes exchange
differences arising from foreign currency borrowings to the extent regarded as an adjustment to the interest costs.

i) Leases

The Company as a lessee

The Company’s lease asset classes primarily consist of leases for land and office building. The Company assesses whether a
contract contains a lease, at inception of a contract. 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. To assess whether a contract conveys the right to
control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the
Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company
has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding lease
liability, except for leases with a term of twelve months or less (short-term leases) and leases for which underlying asset is of low
value. For these short-term and leases for which underlying asset is of low value, the Company recognizes the lease payments as
an operating expense on a straight-line basis over the term of the lease.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease

payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are
subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets is subsequently depreciated from the commencement date on a straight-line basis over the shorter of the lease
term or useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in
circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable
amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the
asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount
is determined for the Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are
discounted using the interest rate implicit in the lease or, if not readily determinable, using the company’s incremental borrowing
rate.

Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its
assessment if whether it will exercise an extension or a termination option.

The Company as a lessor

Leases for which the company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are
classified as operating leases.

For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.

j) Foreign currency transactions
Transaction and balances

Foreign currency transactions are initially recorded, on initial recognition in the functional currency, by applying to the foreign
currency amount the exchange rate between the functional currency and the foreign currency at the date of the transaction.
Monetary items denominated in foreign currency are recognised using the closing exchange rate as on balance sheet date.

The non-monetary items that are measured in terms of historical cost in foreign currency are not retranslated.

Exchange differences arising on the settlement of monetary items or on reporting of monetary items at rates different from rates at
which these were recognised on initial recognition during the period or reported in previous financial statements are recognised in
the statement of Profit and Loss in the period in which they arise. All foreign exchange gains and losses are presented in the
statement of profit and loss on net basis.

k) Accounting for Taxes on income

i. Income tax expense comprises of current and deferred tax. Income tax expense is recognized in the statement of profit and loss
except to when it relates to items recognized directly in equity or items recognised in other comprehensive income in which
case, the current and deferred tax are also recognized in other comprehensive income or directly in equity, respectively.

ii. Current income tax for current period is recognized at the amount expected to be paid to or recovered from the tax authorities,
using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

iii. Deferred tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements.

iv. Deferred 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 tax assets and liabilities is recognized as
income or expense in the period that includes the enactment or the substantive enactment date.

v. A deferred 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. Deferred tax assets are reviewed at each reporting date and
are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Deferred tax assets and
deferred tax liabilities have been offset as they are governed by the same taxation laws.

vi. The company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the
recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability
simultaneously.

l) Earnings per share

Basic earnings per equity share are computed by dividing the net profit attributable to the equity holders of the Company by the
weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing
the net profit attributable to the equity holders of the Company by the weighted average number of equity shares considered for
deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had
the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive
potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential
equity shares are determined independently for each period presented.

m) Dividend

The final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividends are recorded
as a liability on the date of declaration by the Company’s Board of Directors. Company is required to pay / distribute dividend after
deducting applicable taxes.

The Company incurred a cash outflow of F691.23 lakhs during the year ended 31st March, 2025, on account of the final dividend for
fiscal 2024. The Board of Directors recommended a final dividend of F3.00 per equity share and special dividend of F2.00 per equity
share for the financial year ended 31st March 2025. This payment is subject to the approval of shareholders in the ensuing Annual
General Meeting of the Company and if approved, would result in a cash outflow of approximately F691.23 lakhs.

n) Financial Instruments

i) Initial Recognition and measurement

Financial assets and financial liability are recognised when the company entity becomes a party to the contractual provisions of the
instruments.

All financial assets and liabilities are initially recognized at fair value plus or minus transaction cost that are directly attributable to
the acquisition or issue of financial asset or financial liability on initial recognition. However, trade receivables that do not contain a
significant financing component are measured at transaction price.

Transaction cost that are directly attributable to the acquisition of financial assets and financial liabilities that are carried at fair value
through profit or loss are immediately recognized in the statement of profit and loss.

ii) Subsequent measurement
A) Financial assets

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way
purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by
regulation or convention in the marketplace.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the
classification of the financial assets
> Non-derivative financial instruments

1. Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the
asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and interest on the principal amount outstanding.

2. Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business
model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.

Interest income is recognised in profit or loss for instruments measured at Fair value through other comprehensive income
(FVTOCI). All other financial assets are subsequently measured at fair value.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income
over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all
fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or
discounts) through the life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial
recognition.

Income is recognised on an effective interest basis for debt instruments other than those financial assets classified as at FVTPL.
Interest income is recognised in profit or loss and is included in the “Other income” line item.

3. Investment in Equity Instruments measured at fair value through OCI

On initial recognition, the company can make an irrevocable election for its investment which are classified as equity
instruments to present the subsequent changes in fair value in other comprehensive income based on its business model.
These elected investments are initially measured at fair value plus transaction cost, subsequently there are measured at fair
value with gains and losses arising from changes in fair value recognized in Other Comprehensive Income and accumulated in
the Reserve for equity instruments through Other Comprehensive Income. The cumulative gain or loss is not reclassified to the
statement of profit and loss on disposal of the investments.

- The above election is not permitted if the equity investment is held for trading.

Dividend on these investments in equity instruments are recognised in the Statement of profit and loss when the Company’s
right to receive the dividends is established, it is probable that the economic benefits associated with the dividend will flow to the
entity, the dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be measured
reliably. Dividends recognized in the statement of profit and loss are included in ’other income’ line item.

4. Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories is subsequently measured at fair valued through profit or
loss. Debt instruments that meet the amortised cost criteria or the fair value through other comprehensive income but are
designated as fair value through profit or loss are measured at FVTPL.

5. Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at

amortised cost, debt instruments at FVTOCI, lease receivables, trade receivables, other contractual rights to receive cash or
other financial asset not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights.
Credit loss is the difference between all contractual cash flows that are due to the Company in accordance with the contract and
all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate
(or credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets). The Company estimates
cash flows by considering all contractual terms of the financial instrument (for example, prepayment, extension, call and similar
options) through the expected life of that financial instrument.

When making the assessment of whether there has been a significant increase in credit risk since initial recognition, the
Company uses the change in the risk of a default occurring over the expected life of the financial instrument instead of the
change in the amount of expected credit losses. To make that assessment, the Company compares the risk of a default
occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at
the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or
effort, that is indicative of significant increases in credit risk since initial recognition.

For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are
within the scope of Ind AS 115, the Company always measures the loss allowance at an amount equal to lifetime expected credit
losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Company has used a
practical expedient as permitted under Ind AS 109. The Company follows simplified approach for recognition of impairment loss
allowance on trade receivables. The application of simplified approach does not require the Company to track changes in credit
risk. Rather, it recognises impairment loss allowance based on lifetime ECL’s at each reporting date, right from its initial
recognition.

The impairment requirements for the recognition and measurement of a loss allowance are equally applied to debt instruments
at FVTOCI except that the loss allowance is recognised in other comprehensive income and is not reduced from the carrying
amount in the balance sheet.

6. De-recognition of Financial Assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it
transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company
neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset,
the Company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the
Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to
recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

On derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the
consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive
income and accumulated in equity is recognised in profit or loss if such gain or loss would have otherwise been recognised in
profit or loss on disposal of that financial asset.

On derecognition of a financial asset other than in its entirety (e.g. when the Company retains an option to repurchase part of a
transferred asset), the Company allocates the previous carrying amount of the financial asset between the part it continues to
recognise under continuing involvement, and the part it no longer recognises on the basis of the relative fair values of those
parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognised
and the sum of the consideration received for the part no longer recognised and any cumulative gain or loss allocated to it that
had been recognised in other comprehensive income is recognised in profit or loss if such gain or loss would have otherwise
been recognised in profit or loss on disposal of that financial asset. A cumulative gain or loss that had been recognised in other
comprehensive income is allocated between the part that continues to be recognised and the part that is no longer recognised
on the basis of the relative fair values of those parts.

7. Foreign Exchange Gains and Losses

The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and translated at the
spot rate at the end of each reporting period.

For foreign currency denominated financial assets measured at amortised cost and FVTPL, the exchange differences are
recognised in profit or loss.

> Derivative financial instruments

The Company enters into derivative financial instruments to manage its exposure to foreign exchange rate risks and to manage its
exposure to imported raw material price risk including foreign exchange forward contracts and commodities future contracts.
Derivatives are initially recognised at fair value at the date the derivative contracts are entered into 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 the nature of the hedging relationship and the nature of the hedged item.

B. Financial liabilities

The financial liabilities are subsequently carried at amortized cost using the effective interest method.

1. Financial Liability at fair value through Profit or Loss

Financial liabilities are classified as at FVTPL when the financial liability is either contingent consideration recognised by the
Company as an acquirer in a business combination to which Ind AS 103 applies or is held for trading or it is designated as at
FVTPL

A financial liability is classified as held for trading if:

a. it has been incurred principally for the purpose of repurchasing it in the near term; or

b. on initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a
recent actual pattern of short-term profit-taking; orc. it is a derivative that is not designated and effective as a hedging
instrument.

2. Financial Liabilities Subsequently measured at Amortised Cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortised cost at the end of
subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at amortised cost
are determined based on the effective interest method. Interest expense that is not capitalised as part of costs of an asset is
included in the ’Finance costs’ line item.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments
(including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other
premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net
carrying amount on initial recognition.

3. De-recognition of Financial Liablities

The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or
have expired. An exchange between with a lender of debt instruments with substantially different terms is accounted for as an
extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification
of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as
an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the
carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.

> Cash Flow Hedge

The Company has not designated derivative financial instruments as cash flow hedges.

> Equity Instruments:

Equity instrument are any contract that evidences a residual interest in the assets of an equity after deducting all of its liabilities.

Debt or equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the
substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

> Ordinary Shares

Equity shares issued by the company are classified as equity. Incremental costs directly attributable to the issuance of new ordinary
shares and share options are recognized as a deduction from equity, net of any tax effects.

o) Segment reporting

An operating segment is a component of the company that engages in business activities from which it may earn revenues and
incur expenses, including revenues and expenses that relate to transactions with any of the company’s other components, and for
which discrete financial information is available. Segments are identified based on the manner in which the Company’s Chief
Operating Decision Maker (’CODM’) decides about resource allocation and reviews performance.

p) Cash flow statement

The Cash flows are reported using the indirect method, whereby profit for the year is adjusted for the effects of transactions of a non¬
cash nature and item of income or expenses associated with investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated. The Company considers all highly liquid investments that are
readily convertible to known amounts of cash to be cash equivalents.

q) Cash and cash equivalent

Cash and cash equivalent for the purpose of statement of cash flows include bank balances, where the original maturity is three
months or less and other short term highly liquid investments that are readily convertible into cash and which are subject to an
insignificant risk of changes in value. Bank overdrafts are included as a component of cash and cash equivalent for the purpose of
statement of cash flow.