This note provides a list of the significant accounting
policies adopted in the preparation of these financial
statements. The accounting policies have been
consistently applied by the Company unless otherwise
stated or where a newly issued accounting standard is
initially adopted.

a. Basis of preparation of Financial Statement

The financial statements have been prepared in
accordance with Indian Accounting Standards
(referred to as “Ind AS”) as prescribed under section
133 of the Companies Act, 2013 read with the
Companies (Indian Accounting Standards) Rules as
amended and other provisions of the Act. On March
24, 2021, the Ministry of Corporate Affairs (MCA)
through a notification, amended Schedule III of
the Companies Act, 2013 and the amendments are
applicable for financial periods commencing from
April 1, 2021. The Company has evaluated the effect
of the amendments on its financial statements and
complied with the same.

These financial statements have been prepared and
presented under the historical cost convention, on
the accrual basis of accounting except for certain
financial assets and liabilities that are measured at
fair values at the end of each reporting period, as
stated in the accounting policies stated out below.

Accounting policies have been consistently applied
except where a newly issued accounting standard
is initially adopted or a revision to an existing
accounting standard requires a change in the
accounting policy hitherto in use.

• Rounding of amounts

These financial statements including notes
thereon have been prepared and presented
in Indian Rupee (H) which is the functional
currency of the Company. All amounts disclosed
in the financial statements including notes
thereon have been rounded off to the nearest
lakhs as per the requirement of Schedule III to
the Act, unless stated otherwise.

• Current or Non-Current Classification

All assets and liabilities have been classified as
current or non-current as per the Company's
normal operating cycle and other criteria set
out in Schedule III to the Companies Act, 2013.
The Company has ascertained its operating
cycle as 12 months for the purpose of current
and non-current classification of assets
and liabilities.

b. Property, plant and equipment

On transition to Ind AS, the Company has adopted
optional exemption under Ind AS 101 to use the
carrying value of property, plant and equipment as
the deemed cost. Subsequently property, plant and
equipment are stated at cost, less accumulated
depreciation and accumulated impairment loss, if
any. The cost comprises purchase price, borrowing
costs if capitalization criteria are met and directly
attributable cost of bringing the asset to its working
condition for the intended use. Costs directly
attributable to acquisition are capitalized until the
property, plant and equipment are ready for use, as
intended by management.

c. Capital work in progress

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
fixed assets outstanding at each balance sheet date
are disclosed as other non-current assets.

d. Intangible asset under development

Intangible assets under development includes all
costs incurred for the development of intangible
assets including cost of employee benefits and
other directly attributable expenses.

e. Intangible assets

Intangible assets acquired are measured on
initial recognition at cost and stated at cost less
accumulated amortisation and impairment loss, if any.

Intangible assets development costs are expensed
as incurred unless technical and commercial
feasibility of the project is demonstrated, future

Economic benefits are probable, the company has
an intention and ability to complete and use or
Sell the software and the costs can be measured
reliably. The costs capitalized include the costs
of material, direct labour and overhead costs that
are directly attributable to preparing the asset for
its intended use.

Acquired intangible assets are amortised under
written down value method, as per the useful life
prescribed in Schedule II to the Companies Act,
2013. Intangible assets developed with finite useful
life are amortised on a straight line basis over the
useful life of the asset.

f. Investment properties

On transition to Ind AS, the Company has adopted
optional exemption under Ind AS 101 to use
the carrying value of Investment properties as
the deemed cost.

Property that is held for long-term rental yields or for
capital appreciation or both, and that is not occupied
by the Company, is classified as investment property.
Investment property is measured initially at its
cost, including related transaction costs and where
applicable borrowing costs. Subsequent expenditure
is capitalised to the asset's carrying amount only
when it is probable that future economic benefits
associated with the expenditure will flow to the
Company and the cost of the item can be measured
reliably. All other repairs and maintenance costs are
expensed when incurred.

Investment properties are depreciated using the
straight-line method as per the useful life prescribed
in Schedule II to the Companies Act, 2013.

g. Depreciation/amortization on property, plant
and equipment

Depreciable amount for property, plant and
equipment is the cost of an asset, or other amount
substituted for cost, less its estimated residual value.

Depreciation on property, plant and equipment is
provided on a written down value method except
in case of rent out property, pl an t a n d equ ipment
depreciated under straight-line method, as per
the useful life prescribed in Schedule II to the
Companies Act, 2013. The estimated useful lives of
the assets are as follow:

Depreciation on additions during the year is
provided on a pro-rata basis with reference to the
date of addition/installation. Depreciation on assets
disposed /discarded is charged up to the date on
which such asset is sold.

Depreciation is not recorded on capital work-in¬
progress until construction and installation are
complete and the asset is ready for its intended use.

Freehold land is not depreciated.

h. Impairment of property, plant and equipment /
intangible assets / investment property

An asset is considered as impaired when at the date
of balance sheet there are indications of impairment
and the carrying amount of the asset, or where
applicable the cash generating unit to which the
asset belongs exceeds its recoverable amount (i.e.
higher of the net asset selling price and value in use).

The carrying amount is reduced to the recoverable
amount and the reduction is recognized as an
impairment loss in the statement of profit and
loss. The impairment loss recognized in the prior
accounting period is reversed if there has been a
change in the estimate of recoverable amount.
Post impairment, depreciation is provided on the
revised carrying value of the impaired asset over its
remaining useful life.

i. Derecognition of property, plant and equipment
/ intangible assets / investment property

The carrying amount of an item of property, plant
and equipment / intangible assets / investment
property is derecognised on disposal or when no
future economic benefits are expected from its
use or disposal. The gain or loss arising from the
d erecognition of a n item of property, pla n t a nd
equipment / intangible assets / investment property
is measured as the difference between the net
disposal in proceeds and the carrying amount of the
item and is recognised in the statement of profit and
loss when the item is derecognised.

j. Government Grants

Government grants are recognised where there is
reasonable assurance that the grant will be received,

And all attached conditions will be complied with.
When the grant relates to an expense item, it is
recognised as income on a systematic basis over
the periods that the related costs, for which it is
intended to compensate, are expensed. When the
grant relates to an asset, it is recognised as income
in equal amounts over the expected useful life of
the related asset.

When the Company receives grants of non-monetary
assets, the asset and the grant are recorded at
fair value amounts and released to the Statement
of Profit and Loss over the expected useful life
in a pattern of consumption of the benefit of the
underlying asset i.e. by equal annual installments.
When loans or similar assistance are provided by
governments or related institutions, with an interest
rate below the current applicable market rate, the
effect of this favorable interest is regarded as a
government grant. The loan or assistance is initially
recognised and measured at fair value and the
government grant is measured as the difference
between the initial carrying value of the loan and
the proceeds received. The loan is subsequently
measured as per the accounting policy applicable to
financial liabilities.

k. Leases

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.

Effective April 1, 2019, the Company adopted Ind
AS 116 “Leases” and applied the standard to all
lease contracts existing on April 1, 2019 using the
modified retrospective method and has taken the
cumulative adjustment to retained earnings, on
the date of initial application. Consequently, the
Company recorded the lease liability at the present
value of the lease payments discounted at the
incremental borrowing rate and the right of use
asset at its carrying amount as if the standard had
been applied since the commencement date of the
lease, but discounted at the Company's incremental
borrowing rate at the date of initial application.

• The Company as lessee

The Company's lease asset classes primarily
consist of leases for land and buildings. 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) and low
value leases. For these short-term and low
value leases, the Company recognizes the
lease payments as an operating expense on a
straight-line basis over the term of the lease.

Certain lease arrangements include the
options to extend or terminate the lease before
the end of the lease term. ROU assets and
lease liabilities include 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. 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 incremental borrowing rates in the country
Of domicile of these leases. Lease liabilities are
Remeasured with a corresponding adjustment
to the related right of use asset if the Company
changes its assessment if it will exercise an
extension or a termination option.

Lease liability and ROU assets have been
separately presented in the Balance Sheet
and lease payments have been classified as
financing cash flows.

• The Company as 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.

Amounts due from lessees under finance
leases are recognised as receivables at the
amount of the Company's net investment in the
leases. Finance lease income is allocated to
accounting periods so as to reflect a constant
periodic rate of return on the Company's net
investment outstanding in respect of the leases.

Rental income from operating leases is
generally recognised on a straight-line basis
over the term of the relevant lease. Where the
rentals are structured solely to increase in line
with expected general inflation to compensate
for the Company's expected inflationary cost
increases, such increases are recognised in the
year in which such benefits accrue. Initial direct
costs incurred in negotiating and arranging
an operating lease are added to the carrying
amount of the leased asset and recognised on
a straight-line basis over the lease term.

l. Cash and cash equivalent

The Company considers all highly liquid financial
instruments, which are readily convertible into
known amounts of cash that are subject to an
insignificant risk of change in value and having
original maturities of three months or less from the
date of purchase, to be cash equivalents. Cash and
cash equivalents consist of balances with banks
which are unrestricted for withdrawal and usage.

For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash and short-term

deposits, as defined above, net of working capital
loan outstanding as they are considered an integral
part of the Company's cash management.

m. Cash Flow Statement

Cash flows are reported using the indirect method,
whereby profit before tax is adjusted for the effects
of transactions of a non-cash nature, any deferrals
or accruals of past or future operating cash receipts
or payments and items 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.

n. Inventories

Inventories of raw materials, finished goods
and stock in trade, are valued at lower of cost
(computed on a Weighted Average basis) and net
realisable value.

o. Financial instruments

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

• Initial Recognition

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 fair value through
profit or loss) 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 fair value through profit or loss are
recognised immediately in the Statement of
Profit and Loss.

• Subsequent Measurement

Financial assets

Financial assets are classified into the following
specified categories:

Amortised cost, financial assets at fair value
through profit or loss (FVTPL), fair value

through other comprehensive income (FVTOCI).
The classification depends on the Company's
business model for managing the financial
assets and the contractual terms of cash flows.

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. This category
generally applies to trade and other receivables.

Fair value through other comprehensive income
(FVTOCI)

A financial asset is classified as at the FVTOCI
if both of the following criteria are met:

a) The objective of the business model is
achieved both by collecting contractual
cash flows and selling the financial assets.

b) The asset's contractual cash flows
represent solely payments of
principal and interest.

Financial Assets included within the FVTOCI
category are measured initially as well as at
each reporting date at fair value. Fair value
movements are recognized in the other
comprehensive income (OCI).

However, the Company recognizes interest
income, impairment losses and reversals and
foreign exchange gain or loss in the Statement
of Profit and Loss. On derecognition of the
asset, cumulative gain or loss previously
recognised in OCI is reclassified from the
equity to Statement of Profit and Loss.
Interest earned whilst holding a FVTOCI debt
instrument is reported as interest income using
the EIR method.

Fair value through Profit or Loss (FVTPL)

FVTPL is a residual category for financial
assets. Any financial asset, which does not meet
the criteria for categorization as at amortized
cost or as FVTOCI, is classified as at FVTPL. In
addition, the Company may elect to designate
a financial asset, which otherwise meets
amortized cost or FVTOCI criteria, as at FVTPL.
However, such an election is considered only if
doing so reduces or eliminates a measurement

or recognition inconsistency (referred to as
accounting mismatch').

Financial assets included within the FVTPL
category are measured at fair value with
all changes recognized in the Statement of
Profit and Loss.

• Derecognition of financial assets

A financial asset is derecognised only when:

a) The Company has transferred the rights
to receive cash flows from the asset or
the rights have expired or

b) The Company retains the contractual
rights to receive the cash flows of the
financial asset but assumes a contractual
obligation to pay the cash flows to one or
more recipients in an arrangement.

Where the entity has transferred an asset, the
Company evaluates whether it has transferred
substantially all risks and rewards of ownership
of the financial asset. In such cases, the
financial asset is derecognised. Where the
entity has not transferred substantially all
risks and rewards of ownership of the financial
asset, the financial asset is not derecognised.

• Impairment of financial assets

The Company measures the expected credit
loss associated with its financial assets based
on historical trend, industry practices and
the business environment in which the entity
operates or any other appropriate basis. The
impairment methodology applied depends on
whether there has been a significant increase
in credit risk.

Financial liabilities and equity instruments

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.

Equity instruments

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

Repurchase of the Company's own equity
instruments is recognised and deducted
directly in equity. No gain or loss is recognised
On the purchase, sale, issue or cancellation of
the Company's own equity instruments.

Financial liabilities

• Subsequent Measurement

Financial liabilities measured at amortised cost

Financial liabilities are subsequently measured
at amortized cost using the EIR method. Gains
and losses are recognized in Statement of Profit
and Loss when the liabilities are derecognized
as well as through the EIR amortization
process. Amortized cost is calculated by
taking into account any discount or premium
on acquisition and fee or costs that are an
integral part of the EIR. The EIR amortization
is included in finance costs in the Statement of
Profit and Loss.

Financial liabilities measured at fair value
through profit or loss (FVTPL)

Financial liabilities at FVTPL include financial
liabilities held for trading and financial liabilities
designated upon initial recognition as FVTPL.
Financial liabilities are classified as held for
trading if they are incurred for the purpose
of repurchasing in the near term. Financial
liabilities at fair value through profit or loss are
carried in the financial statements at fair value
with changes in fair value recognized in other
income or finance costs in the Statement of
Profit and Loss.

• Derecognition of financial liabilities

A financial liability is derecognized when the
obligation under the liability is discharged or
canceled 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 derecognition 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 and Loss.

• Determination of fair value

Fair value is the price that would be received
to sell an asset or paid to transfer a liability

amortised cost. Any difference between the
proceeds (net of transaction costs) and the
redemption amount is recognised in the Statement
of Profit and Loss over the period of the borrowings
using the effective interest rate (EIR).

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 capitalised
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 and other
costs that an entity incurs in connection with the
borrowing of funds. Borrowing cost also includes
exchange differences to the extent regarded as an
adjustment to the borrowing costs.