5) Material Accounting policies

The material accounting policies related to preparation of
standalone financial statements are given below:

1. Financial Instruments

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

(i) Classification of financial instruments

The Company classifies its financial assets (other than
equity) into the following measurement categories:

(a) Financial assets to be measured at amortised cost.

(b) Financial assets to be measured at fair value
through other comprehensive income.

(c) Financial assets to be measured at fair value
through profit or loss.

Financial assets that are equity instruments are
classified as FVTPL or FVOCI. Financial liabilities are
classified as amortised cost category and FVTPL.

Business Model assessment and Solely payments of
principal and interest (SPPI) test:

Classification and measurement of financial assets depends
on the business model and results of SPPI test. The Company
determines the business model at a level that reflects how
groups of financial assets are managed together to achieve
a particular business objective. This assessment includes
judgement reflecting all relevant evidence including;

• How the performance of the business model and
the financial assets held within that business model
are evaluated and reported to the entity's key
management personnel

• The risks that affect the performance of the business
model (and the financial assets held within that
business model) and, in particular, the way those
risks are managed

• How managers of the business are compensated (for
example, whether the compensation is based on the
fair value of the assets managed or on the contractual
cash flows collected)

• The expected frequency, value and timing of sales are
also important aspects of the Company's assessment

If cash flows after initial recognition are realised in a way that
is different from the Company's original expectations, the
Company does not change the classification of the remaining
financial assets held in that business model, but incorporates

such information when assessing newly originated or newly
purchased financial assets going forward.

Initial recognition

The classification of financial instruments at initial recognition
depends on their contractual terms and the business model
for managing the instruments.

Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets
and financial liabilities (other than financial assets and
financial liabilities at FVTPL) are added to or deducted from
the fair value of the financial assets or financial liabilities,
as appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial assets
or financial liabilities at FVTPL are recognised immediately
in the Statement of profit or loss.

Financial assets and financial liabilities, with the exception
of loans, debt securities and deposits are recognised on
the trade date i.e. when a Company becomes a party to
the contractual provisions of the instruments. Loans, debt
securities and deposits are recognised when the funds are
transferred to the customer's account. Trade receivables are
measured at the transaction price.

Subsequent measurement

Financial assets at amortised cost

Financial assets having contractual terms that give rise on
specified dates to cash flows that are solely payments of
principal and interest on the principal outstanding and that
are held within a business model whose objective is to hold
such assets in order to collect such contractual cash flows are
classified in this category. Subsequently these are measured
at amortised cost using effective interest method less any
impairment losses.

Debt Instruments at FVOCI

Debt instruments that are measured at FVOCI have
contractual terms that give rise on specified dates to cash
flows that are solely payments of principal and interest on
principal outstanding and that are held within a business
model whose objective is achieved by both collecting
contractual cash flows and selling financial assets. These
instruments largely comprise long-term investments
made by the Company. FVOCI debt instruments are
subsequently measured at fair value with gains and
losses arising due to changes in fair value recognised in
OCI. Interest income and gains and losses are recognised
in profit or loss in the same manner as for financial
assets measured at amortised cost. On de-recognition,
cumulative gains or losses previously recognised in OCI
are reclassified from OCI to profit or loss.

Equity Instruments at FVOCI

These include financial assets that are equity instruments as
defined in Ind AS 32 "Financial Instruments: Presentation"
and are not held for trading and where the Company's
management has elected to irrevocably designated the
same as Equity instruments at FVOCI upon initial recognition.
Subsequently, these are measured at fair value and changes
therein are recognised directly in other comprehensive
income, net of applicable income taxes.

Gains and losses on these equity instruments are never
recycled to profit or loss.

Dividends from these equity investments are recognised in
the statement of profit and loss when the right to receive the
payment has been established.

Fair value through Profit and loss account

Financial assets are measured at FVTPL unless it is measured
at amortised cost or at FVOCI on initial recognition. The
transaction costs directly attributable to the acquisition
of financial assets at fair value through profit or loss are
immediately recognised in profit or loss.

Financial Liabilities and equity instruments

Classification as debt or equity

Financial liabilities and equity instruments issued by the
Company are classified according to the substance of the
contractual arrangements entered into and the definitions
of a financial liability and an equity instrument.

Equity instruments

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

Other Financial Liabilities

These are measured at amortised cost using effective
interest rate.

De-recognition of Financial assets and financial liabilities

The Company derecognizes a financial asset only when the
contractual rights to the cash flows from the asset expires or
it transfers the financial asset and substantially all the risks
and rewards of ownership of the asset to another entity.

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

Impairment of financial assets

The Company recognizes a loss allowance for expected
credit losses on a financial asset that is at amortized cost
or fair value through OCI. Loss allowance in respect of
financial assets is measured at an amount equal to life time

expected credit losses and is calculated as the difference
between their carrying amount and the present value of
the expected future cash flows discounted at the original
effective interest rate.

Reclassification of Financial assets

The company does not re-classify its financial assets
subsequent to their initial recognition, apart from the
exceptional circumstances when the company changes
its business model for managing such financial assets. The
company does not re-classify its financial liabilities.

2. Determination of fair value

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 of a financial instrument on initial recognition is
normally the transaction price (fair value of the consideration
given or received). Subsequent to initial recognition, the
Company determines the fair value of financial instruments
that are quoted in active markets using the quoted bid prices
(financial assets held) or quoted ask prices (financial liabilities
held) and using valuation techniques for other instruments.
Valuation techniques include discounted cash flow method
and other valuation models.

3. Investment in subsidiaries and associates

The company does not have any investments in associates
and subsidiaries.

4. Foreign currency transactions and translation

The financial statements of the Company are presented
in Indian rupees ('), which is the functional currency
of the Company and the presentation currency for the
financial statements.

In preparing the financial statements, Company has no
transactions in currencies other than the company's
functional currencies.

5. Cash and cash equivalents

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

For the purpose of the statement of cash flows, cash and
cash equivalents consist of cash and short-term deposits, as
defined above, as they are considered an integral part of the
Company's cash management.

6. Property Plant and Equipment and Intangible Assets

Property, plant and equipment and intangible assets are
stated at cost of acquisition less accumulated depreciation
/ amortisation. Cost includes all expenses incidental to
the acquisition of the Property, plant and equipment and

intangible assets and any attributable cost of bringing the
asset to its working condition for its intended use.

7. Capital work in progress and Capital advances

Cost of assets not ready for intended use, as on the Balance
Sheet date, is shown as capital work in progress. Advances
given towards acquisition of property, plant and equipment
outstanding at each Balance Sheet date are disclosed in
Other Non-Financial Assets.

8. Depreciation and amortisation of property, plant and
equipment and intangible assets

Depreciation on following tangible fixed assets has been
provided on the straight-line method as per the useful life
prescribed in Schedule II to the Companies Act, 2013.

The residual values, useful lives and method of Depreciation
of property, plant and equipment are reviewed at each
financial year end. Changes in the expected useful life
are accounted by changing the amortisation period or
methodology, as appropriate, and treated as changes in
accounting estimates.

Property plant and equipment is derecognised on disposal
or when no future economic benefits are expected from its
use. 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 recognised
in other income / expense in the statement of profit and loss
in the year the asset is derecognised. The date of disposal
of an item of property, plant and equipment is the date the
recipient obtains control of that item in accordance with
the requirements for determining when a performance
obligation is satisfied in Ind AS 115.

9. Impairment of non - financial assets

The carrying amounts of the Company's property, plant
& equipment and intangible assets are reviewed at each
reporting period to determine whether there is any indication
of impairment. If any such indication exists, the asset's
recoverable amounts are estimated in order to determine
the extent of impairment loss, if any. An impairment loss
is recognised whenever the carrying amount of an asset
exceeds its recoverable amount. The impairment loss, if any,
is recognised in the statement of profit and loss in the period
in which impairment takes place.

Recoverable amount is the higher of fair value less costs
of disposal and value in use. 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 for which the estimates of future cash
flows have not been adjusted.

Where an impairment loss subsequently reverses, the
carrying amount of the asset is increased to the revised
estimate of its recoverable amount, however subject
to the increased carrying amount not exceeding the
carrying amount that would have been determined (net
of amortisation or depreciation) had no impairment loss
been recognised for the asset in prior accounting periods. A
reversal of an impairment loss is recognised immediately in
profit or loss.

10. Employee benefits

Short term employee benefits

All employee benefits payable wholly within twelve months
of rendering the service are classified as short-term employee
benefits. Benefits such as salaries, performance incentives,
etc., are recognised as an expense at the undiscounted
amount in the Statement of Profit and Loss for the year in
which the employee renders the related service.