j) Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a
result of a past events and it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.”

Contingent liability is disclosed in the case of;

i) a present obligation arising from past events, when it is not probable that an outflow of resources will

be required to settle obligation;

ii) a present obligation arising from past events, when no reliable estimate is possible.

Contingent assets are neither recognised nor disclosed. However,when realisation of income is virtually

certain, related asset is recognised

Provision, contingent liabilities and contingent assets are reviewed at each balance sheet date and
adjusted where necessary to reflect the current best estimate of obligation or asset.

k) Financial instruments

A financial instrument is a contract that gives rise to a financial asset for one entity and a financial liability
or equity instrument for another entity. Financial assets and financial liabilities are recognised when the
Company becomes a party to the contractual provisions of the instruments.

(i) Initial recognition and measurement

Trade receivables 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 is initially recognised at fair value. In case of financial assets which are recognised
at fair value through profit and loss (FVTPL), its transaction cost are recognised in the Standalone
statement of profit and loss. In other cases, the transaction cost are attributed to the acquisition value
of the financial asset."

(ii) Classification and subsequent measurement

a) Financial assets

For purposes of subsequent measurement, financial assets are classified in following categories:

-Financial Asset carried at amortised cost

-Financial Asset at fair value through other comprehensive income (FVTOCI)

-Financial Asset at 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.

• Financial Asset 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."

• Financial Asset at fair value through other comprehensive income (FVTOCI)

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.

• Financial Asset at fair value through profit and loss (FVTPL)

A financial asset which is not classified in any of the above categories are subsequently fair
valued through profit or loss."

• Equity investment in Subsidiary

Investments in subsidiary are carried at cost less accumulated impairment losses, if any. Where
an indication of impairment exists, the carrying amount of the investment is assessed and
written down immediately to its recoverable amount. On disposal of investments in subsidiary,
the difference between net disposal proceeds and the carrying amounts are recognized in the
standalone statement of profit and loss

The Company had elected for one time Ind AS 101 exemption and adopted carrying cost of its
investment in equity shares of its wholly owned subsidiary as its deemed cost as at the date of

transition.

De-recognition

A financial asset (or, where applicable, a part of a financial asset) is primarily derecognised (i.e.
removed from the Company’s Balance Sheet) when:

(i) The contractual rights to receive cash flows from the asset has expired, or

(Ý) The Company has transferred its contractual rights to receive cash flows from the financial
asset or has assumed an obligation to pay the received cash flows In full without material

delay to a third party under a pass-through' arrangement, and either (a) the Company has
transferred substantially all the risks and rewards of the asset, or (b) the Company has
neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset."

(b) Financial Liabilities

A Financial liabilities are initially measured at the amortised cost unless at initial recognition, they
are classified as fair value through profit and loss. In case of trade payables, they are initially
recognised at fair value and subsequently, these liabilities are held at amortised cost, using the
effective interest rate method.

For purposes of subsequent measurement, financial liabilities are classified in two categories:

-Financial liabilities at amortised cost

-Financial liabilities at fair value through profit and loss (FVTPL)

Financial liabilities at Amortized cost
Loans and borrowings

Borrowing share initially recognised atfairvalue.netoftransactioncostsincurred.Afterinitial re cognition,
interest-bearing loans and borrowings are subsequently measured at amortised cost using the
Effective Interest Rate (EIR) method. Gains and losses are recognised in the Standalone statement
of profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and
fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs
in the Standalone statement of profit and loss. This category generally applies to borrowings

De-recognition

A financial liability is derecognised 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 (if any) in the respective carrying amounts is
recognised in the Standalone statement of profit and loss."

(c) 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.

l) Impairment of Financial Assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected
cash loss rates The Company uses judgments in making these assumptions and selecting the inputs to
the impairment calculation, based on Company's past history, existing market conditions as well as forward
looking estimates at the end of each reporting period.

m) Impairment of Non-Financial Assets

The carrying amounts of the Company's non-financial assets, are reviewed at the end of each reporting period
to determine whether there is any indication of impairment. If any such indication exists, then the asset's

recoverable amount is estimated.

The recoverable amount of an asset or cash-generating unit (‘CGU’) is the greater of its value in use or its
fair value less costs to sell. 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 or CGU. For the purpose of impairment testing, assets that cannot
be tested individually are grouped together into the smallest group of assets that generates cash inflows from
continuing use that are largely independent of the cash inflows of other assets or groups of assets ('CGU').

An impairment loss is recognized, if the carrying amount of an asset or its CGU exceeds its
estimated recoverable amount and is recognised in Standalone statement of profit and loss.
Impairment losses recognised in prior periods are assessed at end of each reporting period for any indications
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 An impairment loss is reversed 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.''

n) Fair Value Measurement

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 measurement is based on
the presumption that the transaction to sell the asset or transfer the liability takes place either:

(i) In the principal market for the asset or liability, or

(ii) In the absence of a principal market, in the most advantageous market for the asset or liability.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair

value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement

is directly or indirectly observable

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement

is unobservable.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of

each reporting period. The Company uses valuation techniques that are appropriate in the circumstances and
for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs
and minimising the use of unobservable inputs.

o) Taxes on Income: Tax expense comprises current and deferred tax.

Current Income Tax

Current tax is the expected tax payable/receivable on the taxable income/loss for the year using
applicable tax rates for the relevant period Current income tax assets and liabilities are measured at
the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws

used to compute the amount are those that are enacted or substantively enacted, at the reporting date
Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either
in other comprehensive income (OCI) or in equity). Current tax items are recognized in correlation to the
underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken

in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and
establishes provisions where appropriate

Current tax assets are offset against current tax liabilities if, and only if, a legally enforceable right exists to set
off the recognised amounts and there is an intention either to settle on a net basis, or to realise the asset and

settle the liability simultaneously.

Deferred Tax

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when

the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax
credits and unused tax losses (if any). Deferred tax assets are recognised to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the carry forward of

unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and is adjusted to the

extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the asset

to be recovered.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same

taxation authority.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in

other comprehensive income or in equity).’¹

p) Investment Property

Investment property are properties held to earn rentals and/or for capital appreciation (including property under
construction for such purposes). Investment Properties are measured initially at cost, including transaction

costs. Subsequent to initial recognition, investment properties are measured in accordance with Ind AS 16
requirements for cost model.

As investment property is derecognised upon disposal or when the investment property is permanently
withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising
on derecognition of the property (calculated as the difference between the net disposal proceeds and the
carrying amount of the assets) is included in profit or loss In the period in which the property is derecognised

Depreciation on property are provided to the extent of depreciable amount on straight line basis (SLM).

Depredation is provided at the rates and in the manner prescribed in Schedule II to the Companies Act,
2013.

q) Assets Held for Sale:

Non-current assets are classified as ‘held for sale' when all the following criteria are met: (I) decision has
been made to sell, (i) the assets are available for immediate sale in its present condition, (iii) the assets are
being actively marketed and (iv) sale has been agreed or is expected to be concluded within 12 months of the

Balance Sheet date