v) Material accounting policies

a) Current versus non-current classification

The Company presents assets and liabilities in

the balance sheet based on current/non-current

classification. An asset is treated as current when it is:

• Expected to be realised or intended to be sold
or consumed in normal operating cycle¹

• Held primarily for the purpose of trading

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

• 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.

*Based on the nature of products and the time
between acquisition of assets for processing and
their realisation in cash and cash equivalents, the
Company has ascertained its operating cycle as 12
months for the purpose of current or non-current
classification of assets and liabilities.

b) Property, plant and equipment

Recognition and initial measurement

Property, plant and equipment are stated at their
cost of acquisition. The cost comprises purchase
price, borrowing cost if capitalization criteria are met
and directly attributable cost of bringing the asset to
its working condition for the intended use. Any trade
discount and rebates are deducted in arriving at the
purchase price. Subsequent costs are included in the
asset's carrying amount or recognized as a separate
asset, as appropriate, only when it is probable
that future economic benefits attributable to such
subsequent cost associated with the item will flow
to the Company. All other repair and maintenance
costs are recognized in statement of profit or loss as
incurred. Capital work in progress is stated at cost,
net of accumulated impairment loss, if any.

In case an item of property, plant and equipment
is acquired on deferred payment basis, interest
expenses included in deferred payment is recognized
as interest expense and not included in cost of asset.

Subsequent_measurement_(depreciation

and useful lives)

Depreciation on property, plant and equipment
is provided on the straight line method arrived on
the basis of the useful life which are equal to those
prescribed under Schedule II of the Companies Act,
2013 except for furniture and fixtures in which useful

lives are different from those prescribed under
Schedule II of the Companies Act, 2013. In respect of
furniture and fixtures and vehicles, the management
believes that these estimated useful lives are realistic
and reflect fair approximation of the period over
which the assets are likely to be used. The following
useful life of assets has been taken by the Company:

Lease hold improvements are depreciated over the
period of lease term.

The residual values, useful lives and method of
depreciation are reviewed at each financial year end
and adjusted prospectively, if appropriate.

Where, during any financial year, any addition has
been made to any asset, or where any asset has
been sold, discarded, demolished or destroyed,
or significant components replaced; depreciation
on such assets is calculated on a pro rata basis as
individual assets with specific useful life from the
month of such addition or, as the case may be, up
to the month on which such asset has been sold,
discarded, demolished or destroyed or replaced.

De-recognition

An item of property, plant and equipment and any
significant part initially recognized is de-recognized
upon disposal or when no future economic
benefits are expected from its use or disposal.
Any gain or loss arising on de-recognition of the
asset (calculated as the difference between the net

disposal proceeds and the carrying amount of the
asset) is included in the income statement when the
asset is derecognized.

c) Intangible Assets

Recognition and initial measurement

Purchased intangible assets are stated at cost less
accumulated amortization and impairment, if any.

Subsequent measurement (amortisation)

All finite-lived intangible assets are accounted for
using the cost model whereby capitalized costs
are amortized on a straight-line basis over their
estimated useful lives. The estimated useful life of
an identifiable intangible asset is based on a number
of factors including the effects of obsolescence,
demand, competition, and other economic
factors (such as the stability of the industry, and
known technological advances), and the level of
maintenance expenditures required to obtain the
expected future cash flows from the asset. The
following useful lives are applied:

De-recognition

An intangible asset is de-recognised on disposal,
or when no future economic benefits are expected
from use or disposal.

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 recognised
in the statement of profit or loss when the asset
is derecognised.

d) Impairment of non-financial assets

The Company assesses, at each reporting date,
whether there is an indication that an asset(other
than inventories and deferred tax assets) may be
impaired. If any indication exists, or when annual
impairment testing for an asset is required, 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) fair value less
costs of disposal and its value in use. 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.

These calculations are corroborated by valuation
multiples, quoted share prices for publicly traded
companies or other available fair value indicators.

Impairment losses of continuing operations are
recognized in the statement of Profit and Loss.

Reversal of impairment losses is recorded when
there is an indication that the impairment losses
recognised for the assets no longer exist or
have decreased.

e) Borrowing costs

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 capitalized
as part of the cost of the asset. All other borrowing
costs are expensed in the period in which they occur.
Borrowing costs consist of interest calculated using
the effective interest rate (EIR) and other costs like
finance charges in respect of the leases recognized
in accordance with Ind AS 116, that an entity incurs
in connection with the borrowing of funds.

f) Functional and presentation currency

The financial statements are presented in Indian
Rupees (INR), which is also the Company's
functional currency.

g) Leases

(i) The Company as a lessee

The Company's lease asset classes primarily
consist of property leases. 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 for
all lease arrangements in which it is a lessee,
except for leases with a term of twelve months
or less (short-term leases). For these short¬
term, the Company recognizes the lease
payments as an operating expense on a
straight-line basis over the term of the lease in
the statement of profit and loss, unless another
systematic basis is more representative of the
time pattern in which economic benefits from
the leased assets are consumed.

Certain lease arrangements include the options
to extend or terminate the lease before the
end of the lease term. ROU assets and lease
liabilities includes these options when it is
reasonably certain that they will be exercised.

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 are depreciated from the
commencement date on a straight-line basis
over the shorter of the lease term and useful
life of the underlying asset.

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
incremental borrowing rates. Lease liabilities are
re-measured 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.
For lease liabilities that are not accounted for
as a separate lease the Company accounts
for the remeasurement of the lease liability, in
case of partial or full termination of the lease
for lease modifications, by decreasing the
carrying amount of the right-of-use asset to
reflect that decrease the scope of the lease
and recognizing any gain or loss relating to

re-assessing categorization (based on the lowest
level input that is significant to the fair value
measurement as a whole) at the end of each
reporting period or each case.

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.

i) Trade receivables

Trade receivables are recognised initially at
transaction price and subsequently measured at
amortised cost less provision for impairment.

j) Inventories

The Company has trading goods and stores &
consumables in its inventory which is valued at lower
of cost and net realizable value. Cost of inventory
comprises of cost of purchases and other costs
incurred in bringing the inventories to their present
condition and location. Cost is determined by the
weighted average cost method.

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

k) Revenue recognition

Revenue from contracts with customers is recognised
upon transfer of control of promised goods/ services to
customers at an amount that reflects the consideration
to which the Company expect to be entitled for those
goods/ services. To recognize revenues, the company
applies the following five-step approach:

• Identify the contract with a customer

• Identify the performance obligations

in the contract

• Determine the transaction price

• Allocate the transaction price to the
performance obligations in the contract and

• Recognise revenue when a performance
obligation is satisfied.

Sale of goods

Revenue is measured at transaction price which
represents value of goods after deduction of any

trade discounts, volume rebates and any taxes
or duties collected on behalf of the government
which are levied on sales such as goods and
service tax (GST).

The Company recognises revenue when the amount
of revenue can be reliably measured, it is probable
that future economic benefits will flow to the entity.
It is the Company's policy to sell its products to the
end customer with a right of return within 7 days.
Accumulated experience is used to estimate and
provide for such returns at the time of sale. 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.

Income from services

Revenues from rent and display activities are
recognized as per the terms of the contract.

Interest income

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

For all financial assets measured at amortized cost,
interest income is recorded using the effective
interest rate (EIR) i.e. the rate that exactly discounts
estimated future cash receipts through the expected
life of the financial asset to the net carrying amount of
the financial assets. The future cash flows include all
other transaction costs paid or received, premiums
or discounts if any, etc.

Contract Liability

A contract liability is recognised when the Company
is under an obligation to redeem credit vouchers etc.
given to customer on existing sales. Contract liabilities
are recognised as revenue when the Company
performs under the contract (i.e.transfers control of
the related goods or services to the customer).

l) Financial instruments

Financial instruments are recognized when the
Company becomes a party to the contractual
provisions of the instrument and are measured
initially at fair value adjusted for transaction costs,
except for those carried at fair value through profit
or loss which are measured initially at fair value.

If the Company determines that the fair value at
initial recognition differs from the transaction price,
the Company accounts for that instrument at that
date as follows:

• at the measurement basis mentioned above
if that fair value is evidenced by a quoted
price in an active market for an identical asset
or liability (i.e. a Level 1 input) or based on a
valuation technique that uses only data from
observable markets. The Company recognizes
the difference between the fair value at initial
recognition and the transaction price as
a gain or loss.

• in all other cases, at the measurement basis
mentioned above, adjusted to defer the
difference between the fair value at initial
recognition and the transaction price. After
initial recognition, the Company recognizes
that deferred difference as a gain or loss only
to the extent that it arises from a change in a
factor (including time) that market participants
would take into account when pricing the
asset or liability.

Subsequent measurement of financial assets and
financial liabilities is described below.

Financial assets

Classification and subsequent measurement

For the purpose of subsequent measurement,
financial assets are classified into the following
categories upon initial recognition:

i. Financial assets at amortized cost - a

financial instrument is measured at amortized
cost if both the following conditions are met:

• The asset is held within a business model
whose objective is to hold assets for
collecting contractual cash flows, and

• Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI)
on the principal amount outstanding.

After initial measurement, such financial assets
are subsequently measured at amortized cost
using the effective interest method.

ii. Financial assets at fair value

• Investments in equity instruments other
than above - All equity investments in
scope of Ind AS 109 are measured at fair
value. Equity instruments which are held
for trading are generally classified as at fair
value through profit and loss (FVTPL). For
all other equity instruments, the Company
decides to classify the same either as at
fair value through other comprehensive
income (FVOCI) or fair value through profit
and loss (FVTPL). 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
instrument as at FVOCI, then all fair value changes
on the instrument, excluding dividends, are
recognized in the other comprehensive income
(OCI). There is no recycling of the amounts
from OCI to P&L, even on sale of investment.
However, the Company may transfer the
cumulative gain or loss within equity. Dividends
on such investments are recognized in profit
or loss unless the dividend clearly represents a
recovery of part of the cost of the investment.

Equity instruments included within the FVTPL
category are measured at fair value with all
changes recognized in the P&L.

De-recognition of financial assets

A financial asset is primarily de-recognized when
the rights to receive cash flows from the asset have
expired or the Company has transferred its rights to
receive cash flows from the asset.

Financial liabilities

Subsequent measurement

After initial recognition, the financial liabilities, other
than derivative liabilities, are subsequently measured at
amortized cost using the effective interest method (EIR).

Amortized cost is calculated by considering any
discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The effect
of EIR amortization is included as finance costs in the
statement of profit and loss.

De-recognition of financial liabilities

A financial liability is de-recognized 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 de¬
recognition 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 or loss.

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 realize the assets and settle
the liabilities simultaneously.

Impairment of financial assets

The Company assesses on a forward looking
basis the expected credit losses associated with
its assets carried at amortized cost and FVOCI
debt instruments.

For trade receivables only, the Company applies the
simplified approach permitted by Ind AS 109 Financial
Instruments, which requires expected lifetime
losses to be recognized from initial recognition of
the receivables.

m) Retirement and other employee benefits
Defined Contribution plan

Retirement benefit in the form of provident fund is a
defined contribution scheme. The Company makes
defined contribution to Government Employee
Provident Fund, ESI which are recognized in the
statement of profit and loss on accrual basis.

The Company recognizes contributions payable
to the provident fund scheme as an expenditure,
when an employee renders the related services.
The Company has no obligation other than the
contribution payable to the Provided Fund. Prepaid
contributions are recognised as an asset to the
extent that a cash refund or a reduction in the future
payments is available.

Defined benefit plan

The Company operates a defined benefit gratuity
plan in India. The cost of providing benefits under
the defined benefit plan is estimated on the basis of
an actuarial valuation performed by an independent
actuary using the projected unit credit method.

Remeasurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognized 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 recognized immediately in profit or
loss as past service cost.

Other employee benefits

Compensated absences

Liability in respect of compensated absences
becoming due or expected to be availed within one
year from the balance sheet date is recognized on
the basis of undiscounted value of estimated amount
required to be paid or estimated value of benefit
expected to be availed by the employees. Liability
in respect of compensated absences becoming due
or expected to be availed more than one year after
the balance sheet date is estimated on the basis of
an actuarial valuation performed by an independent
actuary using the projected unit credit method.

The liabilities for earned 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 using the
actuarial valuation performed by an independent
actuary using the projected unit credit method.
The benefits are discounted using the appropriate
market yields at the end of the reporting period
that have terms approximating to the terms of the
related obligation. Re-measurement as a result of
experience adjustments and changes in actuarial
assumptions are recognized in profit or loss.

The obligations are presented as current liabilities
in the balance sheet if the entity 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.

Other short-term benefits

Expense in respect of other short-term benefits is
recognized on the basis of amount paid or payable
for the period during which services are rendered
by the employees.

n) Employee stock option plan

The cost of equity settled share-based plan is
recognized based on the fair value of the options as
at the grant date. The fair value of options granted
is recognised as an employee benefits expense
with a corresponding increase in other equity. The
total expense is recognised over the vesting period,
which is period over which all of the specified vesting
conditions are satisfied. At the end of each period,
the entity revises its estimates of the number of
options that are expected to vest based on the non¬
market vesting and service conditions. It recognises
the impact of revision to original estimates, if any, in
statement of profit and loss, with a corresponding
adjustment to equity. The fair value of options is
determined using the Black Scholes valuation model.

1

Cash or 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 normal
operating cycle¹