2. Material Accounting Policies

This note provides a list of the material accounting policies
adopted in the preparation of these financial statements.
These policies have been consistently applied to all the
years presented, unless otherwise stated.

a) Basis of preparation

i) Statement of Compliance

These financial statements have been prepared in
accordance with Indian Accounting Standards (Ind AS)
as per the Companies (Indian Accounting Standards)
Rules, 2015 notified under section 133 of Companies Act,
2013(the Act) and other relevant provisions of the Act as
amended from time to time.

ii) Effective 01 April 2015, the Company had transitioned
to Ind AS while the financial statements were being
prepared in accordance with the Companies (Accounting
Standards) Rules, 2006 (previous GAAP) till 31 March
2017 and the transition was carried out in accordance
with Ind AS 101 First time adoption of Indian Accounting
Standards. While carrying out transition, in addition to the
mandatory exemptions, the Company had elected certain
exemptions which are listed as below:

- The Company had opted to continue with the carrying
value for all of its property, plant and equipment
and intangible assets as recognized in the financial
statements prepared under previous GAAP and use the
same as deemed cost in the financial statement as at
the transition date.

- The Company had opted to carry the assessment
whether a contract or arrangement contains a lease on
the basis of facts and circumstances existing at the date
of transition, except where the effect is not expected to
be material. Accordingly, there was no adjustment in the
opening balance of retained earnings as on 1 April 2019.

The financial statements of the Company for the year
ended 31 March 2026 were approved by the Company's
Board of Directors on 28 April 2026.

Hi) Functional and presentation currency

The functional currency of the Company is the Indian
rupee. These financial statements are presented in Indian
rupees. All amounts have been rounded-off to the nearest
lakhs, up to two places of decimal, unless otherwise
indicated.

\v) Basis of measurement

The financial statements have been prepared on the
historical cost basis except for the following items:

v) Measurement of fair values

A number of Company's accounting policies and
disclosures require the measurement of fair values, for
both financial and non-financial assets and liabilities.

The Company has established policies and procedures
with respect to the measurement of fair values. This
includes the top management division which is
responsible for overseeing all significant fair value
measurements, including Level 3 fair values. The top
management division regularly reviews significant
unobservable inputs and valuation adjustments. If third
party information is used to measure fair values, then the
top management division assesses the evidence obtained
from the third parties to support the conclusion that these
valuations meet the requirement of Ind AS, including the
level in the fair value hierarchy in which the valuations
should be classified.

Significant valuation issues are reported to the Company's
board of directors.

Fair values are categorised into different levels in a fair
value hierarchy based on the inputs used in the valuation
techniques as follows:

- Level 1: Quoted prices (unadjusted) in active
markets for identical assets and liabilities.

- Level 2: Inputs other than quoted prices included in
Level 1 that are observable for the asset or liability,
either directly or indirectly.

- Level 3: Inputs for the asset or liability that are not
based on observable market data (unobservable
inputs).

When measuring the fair value of an asset or liability,
the Company uses observable market data as far as
possible. If the inputs used to measure the fair value of an
asset or liability fall into different levels of the fair value
hierarchy, then the fair value measurement is categorised
in its entirely in the same level of the fair value hierarchy
as the lowest level input that is significant to the entire
measurement.

The Company recognises transfers between levels of the
fair value hierarchy at the end of the reporting period
during which the changes have occurred.

Further information about the assumptions made in
measuring fair values used in preparing these financial
statements is included in note 45 - Financial instruments
and Note 42.4 - Share based payment arrangements.

vi) 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 cycle.

- Held primarily for the purpose of trading.

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

- 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 cycle.

- It is held primarily for the purpose of trading.

- It is due to be settled within twelve months after the
reporting period, or

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

The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non¬
current assets and liabilities.

The operating cycle is the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents. The Company has identified twelve months
as its operating cycle.

vii) Use of estimates and judgements

The preparation of these financial statements in
conformity with Generally Accepted Accounting Principles
(GAAP) requires management to make judgments,
estimates and assumptions that impact the application of
accounting policies and the reported amounts of assets,
liabilities, income and expenses and the disclosure of
contingent liabilities on the date of the financial statements.
Actual results could differ from those estimates. Estimates
and underlying assumptions are reviewed on an ongoing
basis. Any revision to accounting estimates is recognised
prospectively in current and future periods.

Financial reporting results rely on the estimate of the
effect of certain matters that are inherently uncertain.
Future events rarely develop exactly as forecast and the
best estimates require adjustments, as actual results may
differ from these estimates under different assumptions
or conditions. Estimates and Judgments are continually
evaluated and are based on historical experience and
other factors, including expectation of future events that
are believed to be reasonable under the circumstances.
The Management believes that the estimates used in
preparation of these financial statements are prudent
and reasonable. Existing circumstances and assumptions
about future developments, however, may change due to
market changes or circumstances arising that are beyond
the control of the Company.

Judgements

Information about judgments made in applying
accounting policies that have the most significant effects
on the amounts recognized in the financial statements is
included in the following notes:

- Note 2(o)(i) and 29 - revenue recognition: whether a
contract contains distinct performance obligations;
determining the transaction price

- Note 2(h) and 20 - lease term: whether the Company
is reasonably certain to exercise extension options

Assumptions and estimation uncertainties

In particular, information about significant areas of
estimation uncertainty and critical judgments in applying
accounting policies that have the most significant effects
on the amounts recognised in the financial statements is
included in the following notes:

- Note 2(a)(v) - Fair value measurement

- Note 2(d) and 3 - Assessment of useful life of Property,
plant and equipment

- Note 2(e) and 5 - Assessment of useful life of
Intangible assets

- Note 2(h) and 20 - leases classification and assessment
of discount rate in relation to lease accounting as per
Ind AS 116

- Note 2(i) - Valuation of inventories

- Note 2(p) - Accounting for Government grant

- Note 2(l), 2(m) and 39 - Recognition and measurement
of provisions and contingencies, key assumptions
about the likelihood and magnitude of an outflow of
resources

- Note 2(r), 9, 23 and 37 - Recognition of tax expense
including deferred tax

- Note 2(j) - Impairment of financial assets

- Note 2(j) - Impairment test of non-financial assets: key
assumptions underlying recoverable amounts and

- Note 2(k) and 42 - Measurement of defined benefit
obligations: key actuarial assumptions;

- Note 42.4 - Share based Payments

b) Foreign currency transactions

Initial recognition

Transactions in foreign currencies are translated into the
functional currency of the Company at the exchange
rates at the dates of the transactions.

Measurement at the reporting date

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 on restatement/
settlement of all monetary items are recognised in profit
or loss.

c) Financial Instruments

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

Financial assets

Recognition and initial measurement

Trade receivables and debt securities are initially
recognised when they are originated. All other financial
assets and financial liabilities are initially recognised
when the Company becomes a party to the contractual
provisions of the instrument.

A financial asset (unless it is a trade receivable without
a significant financing component) or financial liability
is recognized initially at fair value plus or minus, for an
item not at FVTPL, transaction costs that are directly
attributable to its acquisition or issue.

Classification and subsequent measurement

On initial recognition, a financial asset is classified as -
measured at:

- amortised cost;

- fair value through other comprehensive income
(FVOCI) - debt investment;

- fair value through other comprehensive income
(FVOCI) - equity investment, or

- fair value through profit and loss (FVTPL)

Financial assets are not reclassified subsequent to
their initial recognition, except if and in the period the
Company changes its business model for managing
financial assets.

A financial asset is measured at amortised cost if it meets
both of the following conditions and is not designated as
at FVTPL:

- the asset is held within a business model whose
objective is to hold assets to collect contractual cash
flows; and

Financial liabilities: Classification, subsequent
measurement and gains and losses
Financial liabilities are classified as measured at amortised
cost or FVTPL. A financial liability is classified as at FVTPL
if it is classified as held- for- trading, or it is a derivative
or it is designated as such on initial recognition. Financial
liabilities at FVTPL are measured at fair value and net gains
and losses, including any interest expense, are recognised
in profit or loss. Other financial liabilities are subsequently

measured at amortised cost using the effective interest
method. Interest expense and foreign exchange gains
and losses are recognised in profit or loss. Any gain or loss
on derecognition is also recognised in profit or loss.

Derecognition
Financial assets

The Company derecognises a financial asset when the
contractual rights to the cash flows from the financial asset
expire, or it transfers the rights to receive the contractual
cash flows in a transaction in which substantially all of
the risks and rewards of ownership of the financial asset
are transferred or in which the company neither transfers
nor retains substantially all of the risks and rewards of
ownership and does not retain control of the financial
asset.

If the Company enters into transactions whereby it
transfers assets recognised on its balance sheet, but
retains either all or substantially all of the risks and
rewards of the transferred assets, the transferred assets
are not derecognised.

Financial liabilities

The Company derecognises a financial liability when its
contractual obligations are discharged or cancelled or
expire.

The Company also derecognises a financial liability when
its terms are modified and the cash flows under the
modified terms are substantially different. In this case,
a new financial liability based on the modified terms
is recognised at fair value. The difference between the
carrying amount of the financial liability extinguished
and the new financial liability with modified terms is
recognised in profit or loss.

The Company participates in a supplier finance
arrangement under which its suppliers may elect to
receive early payment of their invoices from TREDs
Platform. Under the arrangement, A-TREDs platform
agrees to pay amounts due to participating suppliers
in respect of invoices owed by the Company and the
Company repays A-TREDs platform at a later date. The
principal purpose of this arrangement is to facilitate
efficient payment processing and provide the willing
suppliers early payment terms, compared with the related
invoice payment due date.

The Company derecognises the original trade payables
upon entering into the arrangement, as the obligation to

the suppliers is settled through payment by the A-TREDs
platform and a new liability is recognised in favour of
A-TREDs. However, such arrangement does not alter the
rights and obligations of the Company.

From the Company perspective, the arrangement does
provide participating suppliers with the benefit of early
payment. The Company therefore includes the amounts
subject to the arrangement within trade payables because
the nature and function of these payables remains the
same as those of other trade payables.

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 realise the asset
and settle the liability simultaneously.

Derivative financial instruments

The Company holds derivative financial instruments to
hedge its foreign currency risk exposures. Such derivative
financial instruments are initially recognised at fair value
on the date on which a derivative contact is entered
into and are subsequently re-measured at fair value, and
changes therein are generally recognized in profit or loss.
Derivatives are carried as financial assets when the fair
value is positive and as financial liability when the fair
value is negative.

d) Property, plant and equipment ('PPE')

Recognition and measurement

Property, plant and equipment are measured at cost of
acquisition or construction less accumulated depreciation
and/or accumulated impairment, if any.

The Cost of an item of Property, Plant and equipment
comprises:

• its purchase price including import duties and non¬
refundable purchase taxes after deducting trade
discounts and rebates.

any cost directly attributable to bringing the asset
to the location and the working condition for its
intended use and

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.

• financing cost related to borrowed funds attributable
to the construction or acquisition of qualifying assets
upto the date of the assets are ready for use.

The cost of an item of property, plant and equipment
shall be recognized as an asset if, and only if it is probable
that future economic benefits associated with the item
will flow to the Company and the cost of the item can be
measured reliably.

Freehold land is carried at historical cost less any
accumulated impairment losses.

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 and the cost of assets not put to use before such
date are disclosed under 'Capital work-in-progress'.

If 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.

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. Assets
to be disposed off are reported at the lower of the carrying
value or the fair value less cost to sell.

Subsequent expenditure

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 when incurred.

Depreciation

Depreciation is calculated on cost of items of PPE
(excluding freehold land) less their estimated residual
values over their estimated useful lives using the straight¬
line method and is recognised in the Statement of Profit
and Loss. Freehold land is not depreciated.

Depreciation on items of property, plant and equipment
is provided as per the rates corresponding to the useful
life specific in Schedule II of the Companies Act, 2013

Significant components of assets and their useful life and
depreciation charge is based on an internal technical
evaluation. These estimated lives are based on technical
assessment made by technical expert and management
estimates. 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.

Depreciation method, useful lives and residual values
are reviewed at each financial year-end and adjusted
if appropriate. Depreciation on additions (disposal) is
provided on a pro-rata basis i.e. from (upto) the date on
which asset is ready for use (disposed of).

Derecognition

A property, plant and equipment are derecognised
on disposal or when no future economic benefits are
expected from its use and disposal. Losses arising from
retirement and gains or losses arising from disposal of a
tangible 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 and
Loss.

e) Other Intangible Assets

Acquired Intangible

Intangible assets that are acquired by the Company are
measured initially at cost. Cost of an item of Intangible
asset comprises its purchase price, including import duties
and non-refundable purchase taxes, after deducting
trade discounts and rebatesand include any directly

attributable cost of bringing the item to its working
condition for its intended use. After initial recognition, an
intangible asset is carried at its cost less any accumulated
amortisation and any accumulated impairment loss.

Subsequent expenditure

Subsequent expenditure is capitalised only when it
increases the future economic benefits embodied in the
specific asset to which it relates. All other expenditure is
recognised in Statement of Profit and Loss as incurred.

Amortisation

Amortisation is calculated to write off the cost of
intangible assets less their estimated residual values
over their estimated useful lives using the straight-line
method, and is included in depreciation and amortisation
expense in Statement of Profit and Loss. The estimated
useful life of Computer software is 5 years.

Amortisation method, useful life and residual values are
reviewed at the end of each financial year and adjusted if
appropriate.

Derecognition

Intangible assets are derecognised on disposal or when
no future economic benefits are expected from its use
and disposal.

f) Technical Assistance Fees & Royalty

Payment of technical know-how in the form of royalty for
providing technical assistance is being accounted for on
accrual basis as per the agreement between the parties.

g) Borrowing costs

Borrowing costs are interest and other costs (including
exchange differences arising from foreign currency
borrowings to the extent that they are regarded as an
adjustment to interest costs) incurred by the Company in
connection with the borrowing of funds. Borrowing costs
directly attributable to acquisition or construction of an
asset which necessarily take a substantial period of time
to get ready for their intended use are capitalized as a part
of cost of the asset. Other borrowing costs are recognised
as an expense in the period in which they are incurred.

h) Leases
As lessee

The Company's lease asset classes primarily consist of
leases for buildings. The Company, at the inception of a
contract, assesses whether the contract is a lease or not. A

contract is, or contains, a lease if the contract conveys the
right to control the use of an identified asset for a time in
exchange for a consideration.

The Company elected to use the following practical
expedients on initial application:

- Applied a single discount rate to a portfolio of leases
of similar assets in similar economic environment with
a similar end date.

- Applied the exemption not to recognize right-of-
use assets and liabilities for leases with less than 12
months of lease term on the date of initial application.

- Excluded the initial direct costs from the measurement
of the right-of-use asset at the date of initial
application.

- Applied the practical expedient to grandfather
the assessment of which transactions are leases.
Accordingly, Ind AS 116 is applied only to contracts
that were previously identified as leases under
Ind AS 17.

The Company recognises a right-of-use asset and a lease
liability at the lease commencement date. The right-of-
use asset is initially measured at cost, which comprises
the initial amount of the lease liability adjusted for any
lease payments made at or before the commencement
date, plus any initial direct costs incurred and an estimate
of costs to dismantle and remove the underlying asset or
to restore the underlying asset or the site on which it is
located, less any lease incentives received.

The right-of-use assets is subsequently measured at
cost less any accumulated depreciation, accumulated
impairment losses, if any and adjusted for any
remeasurement of the lease liability. The right-of-use
assets is depreciated using the straight-line method from
the commencement date over the shorter of lease term
or useful life of right-of-use asset. The estimated useful
lives of right-of-use assets are determined on the same
basis as those of property, plant and equipment. Right-
of-use assets are tested for impairment whenever there
is any indication that their carrying amounts may not be
recoverable. Impairment loss, if any, is recognised in the
statement of profit and loss.

The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted using the Company's

incremental borrowing rate. The Company determines
its incremental borrowing rate by obtaining interest
rates from various external financing sources and
makes certain adjustments to reflect the terms of the
lease and type of the asset leased. The lease liability is
subsequently remeasured by increasing the carrying
amount to reflect interest on the lease liability, reducing
the carrying amount to reflect the lease payments
made and remeasuring the carrying amount to reflect
any reassessment or lease modifications or to reflect
revised in-substance fixed lease payments. The company
recognises the amount of the re-measurement of lease
liability due to modification as an adjustment to the right-
of-use asset and statement of profit and loss depending
upon the nature of modification. Where the carrying
amount of the right-of-use asset is reduced to zero and
there is a further reduction in the measurement of the
lease liability, the Company recognises any remaining
amount of the re-measurement in statement of profit and
loss.

Lease payments included in the measurement of the
lease liability comprise the following:

- fixed payments, including in-substance fixed
payments;

- variable lease payments that depend on an index or
a rate, initially measured using the index or rate as at
the commencement date;

- amounts expected to be payable under a residual
value guarantee; and

- the exercise price under a purchase option that
the company is reasonably certain to exercise,
lease payments in an optional renewal period if
the company is reasonably certain to exercise an
extension option, and penalties for early termination
of a lease unless the company is reasonably certain
not to terminate early.

The lease liability is measured at amortised cost using the
effective interest method. It is remeasured when there is
a change in future lease payments arising from a change
in an index or rate, if there is a change in the company's
estimate of the amount expected to be payable under
a residual value guarantee, if the company changes
its assessment of whether it will exercise a purchase,
extension or termination option or if there is a revised in¬
substance fixed lease payment.

When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying
amount of the right-of-use asset, or is recorded in profit
or loss if the carrying amount of the right-of- use asset has
been reduced to zero.

The Company has elected not to recognise right-of-use
assets and lease liabilities for short-term leases that have
a lease term of 12 months or less and leases for which the
underlying asset is of low value. The Company recognises the
lease payments associated with these leases as an expense in
the Statement of Profit or Loss over the lease term.

i) Inventories

Inventories are measured at the lower of cost and net
realizable value. The methods of determining cost of
various categories of inventories are as follows:

The cost of inventories includes expenditure incurred in
acquiring the inventories, production or conversion costs
and other costs incurred in bringing them to their present
location and condition.

Net realisable value is the estimated selling price in the
ordinary course of business, less the estimated costs
necessary to make the sale. The net realisable value of
work-in-progress is determined with reference to the
selling prices of related finished products.

Raw materials, components and other supplies held for
use in the production of finished products are not written
down below cost except in cases where material prices
have declined and it is estimated that the cost of the
finished products will exceed their net realisable value.
The comparison of cost and net realisable value is made
on an item-by-item basis.

j) Impairment

Impairment of financial assets

The Company recognises loss allowances for expected
credit loss on financial assets measured at amortised cost.

At each reporting date, the Company assesses whether
financial assets carried at amortised cost are credit-
impaired. A financial asset is 'credit-impaired' when one
or more events that have detrimental impact on the
estimated future cash flows of the financial assets have
occurred.

Evidence that a financial asset is credit - impaired includes
the following observable data:

- significant financial difficulty of the debtor, borrower
or issuer;

- a breach of contract such as a default or being past
due for 90 days or more;

- the restructuring of a loan or advance by the Company
on terms that the Company would not consider
otherwise;

- it is probable that the borrower will enter bankruptcy
or other financial reorganisation; or

- the disappearance of an active market for a security
because of financial difficulties.

The Company measures loss allowances at an amount
equal to lifetime expected credit losses, except for the
following, which are measured as 12 month expected
credit losses:

- Bank balances for which credit risk (i.e. the risk of
default occurring over the expected life of financial
instrument) has not increased significantly since
initial recognition.

Loss allowances for trade receivables are always
measured at an amount equal lifetime expected credit
losses. Lifetime expected credit losses are the expected
credit losses that result from all possible default events
over the expected life of a financial instrument.

12-month expected credit losses are the expected credit
losses that result from default events that are possible
within 12 months after the reporting date (or a shorter
period if the expected life of the instrument is less than 12
months)

In all cases, the maximum period considered when
estimating expected credit losses is the maximum
contractual period over which the Company is exposed
to credit risk.

When determining whether the credit risk of a financial
asset has increased significantly since initial recognition

and when estimating expected credit losses, the Company
considers reasonable and supportable information that is
relevant and available without undue cost or effort. This
includes both quantitative and qualitative information
and analysis, based on the Company's historical
experience and informed credit assessment and including
forward-looking information.

The Company considers a financial asset to be in default
when:

• the debtor is unlikely to pay its credit obligations
to the Company in full, without recourse by the
Company to actions such as realising security (if any
is held); or

• the financial asset is more than 90 days past due.
Measurement of expected credit losses

Expected credit losses are a probability-weighted estimate
of credit losses. Credit losses are measured as the present
value of all cash shortfalls (i.e. the difference between the
cash flows due to the Company in accordance with the
contract and the cash flows that the Company expects to
receive).

Expected credit losses are discounted at the effective
interest rate of the financial asset.

Presentation of allowance for expected credit losses in the
balance sheet

Loss allowance for financial assets measured at amortised
cost are deducted from the gross carrying amount of the
assets.

Write-off

The gross carrying amount of a financial asset is written
off (either partially or in full) to the extent that there is no
realistic prospect of recovery. This is generally the case
when the Company determines that the debtor does not
have assets or sources of income that could generate
sufficient cash flows to repay the amounts subject to the
write- off. However, financial assets that are written off
could still be subject to enforcement activities in order to
comply with Company's procedures for the recovery of
amount due.

Impairment of non-financial assets

The Company's non-financial assets, other than 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).

The Company's corporate assets do not generate
independent cash inflows. To determine impairment of
a corporate asset, recoverable amount is determined for
the CGUs to which the corporate asset belongs.

An impairment loss is recognised if the carrying amount
of an asset or CGU exceeds its estimated recoverable
amount. Impairment losses, if any, are recognised in the
Statement of Profit and Loss.

In regard to assets for which impairment loss has been
recognised in prior period, 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 amortisation, if
no impairment loss had been recognised.

k) Employee benefits

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 recognised for the amount
expected to be paid e.g., salaries and wages and bonus
etc., 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.

Share-based payment transactions

Equity-settled share-based payments to employees are
measured at the fair value of the equity instruments at the
grant date. The fair value determined at the grant date of
the equity-settled share- based payments is expensed
on a straight-line basis over the vesting period, based on
the Company's estimate of equity instruments that will
eventually vest, with a corresponding increase in equity.

When the terms of an equity-settled award are modified,
the minimum expense recognised by the Company is the
grant date fair value of the unmodified award, provided
the vesting conditions (other than a market condition)
specified on grant date of the award are met.

Further, additional expense, if any, is measured and
recognised as at the date of modification, in case such
modification increases the total fair value of the share-
based payment plan, or is otherwise beneficial to the
employee.

Post-employment benefits

Defined contribution plans

A defined contribution plan is a post-employment benefit
plan under which an entity pays specified contributions
to a separate entity and will have no legal or constructive
obligation to pay further amounts. The Company makes
specified monthly contributions towards employee
provident fund and employee state insurance scheme
('ESI') to Government administered scheme which is a
defined contribution plan. The Company's contribution is
recognised as an expense in the Statement of Profit and
loss during the period in which the employee renders the
related service.

Defined benefit plans

A defined benefit plan is a post-employment benefit
plan other than a defined contribution plan. Gratuity is a
defined benefit plan. The administration of the gratuity
scheme has been entrusted to the VSSL gratuity fund
trust. The Company's net obligation in respect of gratuity
is calculated separately 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 an independent qualified actuary using the
projected unit credit method. Remeasurements 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 immediately in OCI.. The
Company determines the net interest expense (income)
on the net defined benefit liability 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, taking into
account any changes in the net defined benefit liability
during the period as a result of contributions and benefit
payments. Net interest expense and other expenses
related to defined benefit plans are recognised 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 recognised immediately in
the Statement of Profit and Loss. The Company recognises
gains and losses on the settlement of a defined benefit
plan when the settlement occurs.

When the calculation results in a potential asset for the
Company, the recognised 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
contribution to the plan. To calculate the present value
of economic benefits, consideration is given to any
applicable minimum funding requirement.

Compensated absences

The Company's net obligation in respect of long-term
employee benefits other than post-employment benefits
is the amount of future benefit that employees have
earned in return for their service in the current and
prior periods; that benefit is discounted to determine
its present value. Such obligation such as those related
to compensate absences is measured on the basis of
an annual independent actuarial valuation using the
projected unit cost credit method. Remeasurement gains
or losses are recognised in profit or loss in the period in
which they arise. The obligations are presented as current
liabilities in the balance sheet if the Company does not
have an unconditional right to defer the settlement for at
least twelve months after the reporting date.