A. Significant Accounting Policies:

i) Basis of Preparation:

(a) Compliance with Ind AS

These financial statements are the separate financial statements of the Company prepared in
accordance with Indian Accounting Standards (‘Ind AS’) notified under Section 133 of the
Companies Act, 2013, read together with the Companies (Indian Accounting Standards) Rules, 2015
as amended, hereinafter referred to as the Ind AS, and other relevant provisions of the Companies
Act, 2013.

Company’s financial statements are presented in Indian Rupees (?), which is also its functional
currency.

(b) Use of Estimates:

The preparation of financial statements requires the management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the
disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are
based on management’s best knowledge of current events and actions, uncertainty about these
assumptions and estimates could result in the outcomes requiring adjustment to the carrying amounts
of assets or liabilities in future periods.

Estimates and judgements arc continually evaluated. They are based on historical experience and
other factors, including expectations of future events that may have a financial impact on the
Company and that are believed to be reasonable under the circumstances.

(c) Estimation of uncertainties relating to the global health pandemic from COV1D-19

The Company has considered the possible effects that may result from the pandemic relating to
COVID-19 on the carrying amounts of receivables and investment in subsidiaries. In developing the
assumptions relating to the possible future uncertainties in the global economic conditions because
of this pandemic, the Company, as at the date of approval of these financial statements has used
internal and external sources of information including credit reports and related information,
economic forecasts. The Company has performed sensitivity analysis on the assumptions used and
based on current estimates expects the carrying amount of these assets will be recovered. The impact
of COVID-19 on the Company’s financial statements may differ from that estimated as at the-date of
approval of these financial statements.

(d) Historical Cost Convention:

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 financial liabilities that are
measured at fair values at the end of each reporting period, as stated in the accounting policies set out
below. The accounting policies have been applied consistently over all the periods presented in these
financial statements.

iil.Current/ Non-Current classification:

Any asset or liability is classified as current if it satisfies any of the following conditions:

i. the asset/liability is expected to be realized/settled in the Company’s normal operating cycle;

ii. The asset is intended for sale or consumption;

iii. The asset/liability is held primarily for the purpose of trading;

iv. The asset/liability is expected to be realized/settled within twelve months after the reporting
period;

v. the asset is cash or cash equivalent unless it is restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting date;

vi. In the case of a liability, the Company does not have an unconditional right to defer settlement of
the liability for at least twelve months after the reporting date.

All other assets and liabilities are classified as non-current.

For the purpose of current/non-current classification of assets and liabilities, the Company has
ascertained its normal operating cycle as twelve months.

iiil.Tangihle Assets /Property, plant and equipment:

An item of property, plant and equipment that qualifies as an asset is measured on initial recognition
at cost. Following initial recognition, items of property, plant and equipment are carried at its cost
less accumulated depreciation and accumulated impairment losses.

The Company identifies and determines cost of each part of an item of property, plant and equipment
separately, if the part has a cost which is significant to the total cost of that item of property, plant
and equipment and has useful life that is materially different from that of the remaining item.

The cost of an item of property, plant and equipment comprises of its purchase price including import
duties and other nonrefundable purchase taxes or levies, directly attributable cost of bringing the asset
to its working condition for its intended use and the initial estimate of decommissioning, restoration
and similar liabilities, if any. Any trade discounts and rebates are deducted in arriving at the purchase
price. Cost includes cost of replacing a part of a plant and equipment if the recognition criteria are
met.

Items such as spare parts, stand-by equipment and servicing equipment that meet the definition of
property, plant and equipment are capitalized at cost and depreciated over their useful life. Costs in
nature of repairs and maintenance are recognized in the Statement of Profit and Loss as and w'hen
incurred. ....

iv) .Depreciation on tangible fixed assets:

Depreciation on each part of an item of property, plant and equipment is provided using the Straight
Line Method based on useful life of the assets as prescribed in Schedule II to the Companies Act,
2013.

The useful lives, residual values of each part of an item of property, plant and equipment and the
depreciation methods are reviewed at the end of each financial year. If any of these expectations differ
from previous estimates, such change is accounted for as a change in an accounting estimate and
accordingly, accounted for prospectively.

v) .Intangible Assets:

Intangible assets acquired separately are measured on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost less any accumulated amortization and accumulated
impairment losses. Internally generated intangibles are not capitalized and the related expenditure is
reflected in Statement of Profit and Loss in the period in which the expenditure is incurred.

Intangible assets are amortised over the useful economic life i.e. 3 years based on management
assessment and assessed for impairment whenever there is an indication that the intangible asset may
be impaired.

The amortization period and the amortization method for an intangible asset with a finite useful life
are reviewed at least at the end of each reporting period. Changes in the expected useful life or the
expected pattern of consumption of future economic benefits embodied in the asset are considered to
modify the amortization period or method, as appropriate, and are treated as changes in accounting
estimates. The amortization expense on intangible assets is recognised in the Statement of Profit and
Loss.

vi) .Derecognition:

The carrying amount of an item of property, plant and equipment is derecognized on disposal or when
no future economic benefits are expected from its use or disposal. The gain or loss arising from the
derecognition of an item of property, plant and equipment is measured as the difference between the
net disposal proceeds and the carrying amount of the item and is recognized in the Statement of Profit
and Loss.

viihlmpairment of non-financial assets - property plant and equipment and intangible assets:

The carrying amount of assets are reviewed at each Balance Sheet date to assess if there are any
indications of impairment based on internal / external factors. An impairment loss on such assessment
will be recognised wherever the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount of the assets is net selling price or value in use, whichever is higher. While
assessing value in use, the estimated future cash flows are discounted to the present value by using
weighted average cost of capital. A previously recognised impairment loss is further provided or
reversed depending on changes in the circumstances and to the extent that carrying amount of the
assets does not exceed the carrying amount that will be determined if no impairment loss had
previously been recognised.

Goodwill, intangible assets having indefinite useful life and intangible assets currently not in use by
the Company are tested for impairment annually and also whenever there are indicators of
impairments.

Reversal of impairment of Goodwill is not recognized.
viiil.Lease:

The Company as a Lessee

The Company’s lease asset classes primarily consist of leases for office premises for its branches at
various locations. 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 (ROU) asset and
a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with
a term of 12 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 includes 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.

As all the leases are short-term leases or low value leases, the Company has not recognized any right-
of-use asset and corresponding lease liability for any of the lease arrangements in which it is a lessee
during the year.

The Company as a 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.

For operating leases, rental income is recognized on an accrual basis over the term of the relevant
lease.

Transition

Effective April 1, 2019, the Company adopted Ind AS 116. Leases and applied the standard to all
lease contracts existing on April 1,2019. However, as all the leases are short-term leases or low value
leases, the Company has not recognized any right-of-use asset and corresponding lease liability for
any of the lease arrangements during the year.

ix) .Borrowing costs:

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the
arrangement of borrowing and exchange differences arising from foreign currency borrowing to the
extent they are regarded as an adjustment to the interest cost.

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 respective asset. All other borrowing costs are expensed in the period they
occur.

x) .Revenue Recognition:

Revenue is recognized when it is probable that economic benefits associated with a transaction flows
to the Company in the ordinary course of its activities and the amount of revenue can be measured
reliably.

Revenue is measured at the fair value of the consideration received or receivable, net of returns, trade
discounts and volume rebates by the Company.

Revenue includes only the gross inflows of economic benefits, received and receivable by the
Company, on its own account. Amounts collected on behalf of third parties such as Sales Tax. VAT
and GST are excluded from revenue.

The company bases its estimates on historical results, taking into consideration the type of customer,
type of transaction and specifics of each arrangement. Accumulated experience is used to estimate
and provide for discounts and returns. No element of financing is deemed present as sales are made
with a credit term which is consistent to market practice.

Sale of products:

Revenue from sale of products is recognized when the Company transfers all significant risks and
rewards of ownership to the buyer, while the Company retains neither continuing managerial
involvement nor effective control over the products sold.

Rendering of services;

Revenue from product support services are recognized once the service is provided and the invoice
is raised and are net of applicable taxes.

Interest:

Interest income from debt instruments is recognized using the effective interest rale method.
Dividend:

Dividends are recognised in the Statement of Profit and Loss only when the right to receive payment
is established, it is probable that the economic benefits associated with the dividend will flow to the
Company, and the amount of the dividend can be measured reliably.

xi).Foreign Currency Transactions /translations:

Functional and presentation Currency:

Items included in the financial statement of the company are measured using the currency of the
primary economic environment in which the company operates (functional currency). The Financial

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statements of the company are presented in Indian Currency, which is also the functional currency of
the company.

Initial Recognition:

On initial recognition, transactions in foreign currencies entered into by the Company are recorded in
the functional currency (i.e. Indian Rupees), by applying to the foreign currency amount, the spot
exchange rate between the functional currency and the foreign currency at the date of the transaction.
Exchange differences arising on foreign exchange transactions settled during the year are recognized
in the Statement of Profit and Loss.

Foreign exchange gain or loss resulting from the settlement of such transactions and from translation
of monetary assets or liability denominated in foreign currencies at the year-end exchange rate are
generally recognized in the profit and loss account except that they are deferred in equity if they relate
to qualifying cash flow hedges.

Measurement of foreign currency items at reporting date:

Foreign currency monetary items of the Company are translated at the closing exchange rates. Non¬
monetary items that are measured at historical cost in a foreign currency, are translated using the
exchange rate at the date of the transaction.

Non-monetary items that are measured at fair value in a foreign currency, are translated using the
exchange rates at the date when the fair value is measured.

Exchange differences arising out of these translations are recognized in Other Comprehensive
Income.

xip.Dcrivativc financial instruments and hedge accounting:

The Company enters into derivative financial contracts in the nature of forward currency contracts
with external parties to hedge its foreign currency risks relating to foreign currency denominated
financial liabilities measured at amortized cost.

The Company is not following hedge accounting. Consequently, all derivative instruments are
recognized and measured at Fair Value through Profit and Loss.

xiii).Inventories:

(a) Stock of goods traded is valued at lower of cost and net realizable value. The costs of purchase of
inventories comprise the purchase price, import duties and other taxes (other than those subsequently
recoverable by the entity from the taxing authorities), and transport, handling and other costs directly
attributable to the acquisition of finished goods, materials and services. Trade discounts, rebates and
other similar items are deducted in determining the costs of purchase. The costs are determined on a
weighted average basis.

(b) Saleable scrap is accounted for as and when sold.

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Classification:

The Company classifies its financial assets in the following measurement categories:

i) Those to be measured subsequently at fair value (either through Other Comprehensive Income
(OCI), or through Profit or Loss), and

ii) Those measured at amortised cost.

The classification depends on the business model of the entity for managing the financial assets and
the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in Profit or Loss or Other
Comprehensive Income.

For investments in debt instruments, this will depend on the business model in which the investment
is held.

For investments in equity instruments, this will depend on whether the Company has made an
irrevocable election at the time of initial recognition to account for the equity investment at fair value
through Other Comprehensive Income (OCI)

Initial recognition and measurement:

Financial assets are recognized when the Company becomes a party to the contractual provisions of
the instrument. Financial assets arc recognized initially at fair value plus, in the case of financial
assets not recorded at fair value through profit or loss, transaction costs that are attributable to the
acquisition of the financial asset. Transaction costs of financial assets carried at fair value through
profit or loss are expensed in the Statement of Profit and Loss.

Subsequent measurement:

After initial recognition, financial assets are measured at:

i) Fair value {either through Other Comprehensive Income (FVOCI) or through Profit or Loss
(FTVPL)} or,

ii) Amortised cost.

Debt instruments:

Subsequent measurement of debt instruments depends on the business model of the Company for
managing the asset and the cash flow characteristics of the asset. There are three measurement
categories into which the Company classifies its debt instruments:

Measured at amortised cost:

Financial assets that are held within a business model whose objective is to hold financial assets in
order to collect contractual cash flows that are solely payments of principal and interest, are
subsequently measured at amortised cost using the Effective Interest Rate (EIR) method less

impairment, if any. The amortization of EIR and loss arising from impairment, if any is recognized
in the Statement of Profit and Loss.

Measured at fair value through Other Comprehensive Income (FVOCI):

Financial assets that are held within a business model whose objective is achieved by both, selling
financial assets and collecting contractual cash flows that are solely payments of principal and
interest, are subsequently measured at fair value through Other Comprehensive Income. Fair value
movements are recognized in the OCI. Interest income measured using the EIR method and
impairment losses, if any are recognized in the Statement of Profit and Loss. On de-recognition,
cumulative gain / (loss) previously recognized in OCI is reclassified from the equity to other income
in the Statement of Profit and Loss.

Measured at Fair Value through Profit or Loss: (FVTPL)

A financial asset not classified as either amortised cost or FVOCI, is classified as FTVPL. Such
financial assets are measured at fair value with all changes in fair value, including interest income
and dividend income if any, recognised as other income in the Statement of Profit and Loss.

Equity instruments:

The Company subsequently measures all investments in equity instruments other than subsidiary
companies, associate company and joint venture Company at fair value. The Management of the
Company has elected to present fair value gains and losses on such equity investments in Other
Comprehensive Income, and there is no subsequent reclassification of these fair value gains and losses
to the Statement of Profit and Loss. Dividends from such investments continue to be recognised in
profit or loss as other income when the right to receive payment is established.

Changes in the fair value of financial assets at fair value through profit or loss are recognized in the
&, Statement of Profit and Loss. Impairment losses (and reversal of impairment losses) on equity
investments measured at FVOCI are not reported separately from other changes in fair value.

Investments in Subsidiary Companies, Associate Companies and Joint Venture companies:

Investments in Subsidiary Companies. Associate Companies and Joint Venture companies 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 Companies, Associate Companies and Joint
Venture companies, the difference between net disposal proceeds and the carrying amounts are
recognized in the Statement of Profit and Loss.

Impairment of financial assets:

In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for
measurement and recognition of impairment loss on the following financial assets and credit risk
exposure:

i) Financial assets that are debt instruments, and are measured at amortized cost e.g., loans, debt
securities, deposits, and bank balance.

ii) Trade Receivables. Ý

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade
receivables which do not contain a significant financing component'. The application of simplified
approach does not require the Company to track changes in credit risk. Rather, it recognizes
impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial
recognition.

De-recognition:

A financial asset is de-recognized only w'hen the Company

i) has transferred the rights to receive cash flows from the financial asset or

ii) 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.

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 de-recognized. Where the entity has not transferred substantially all risks and rewards of
ownership of the financial asset, the financial asset is not de-recognized. Where the entity has neither
transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial
asset, the financial asset is de-recognized if the Company has not retained control of the financial
asset. Where the Company retains control of the financial asset, the asset is continued to be recognized
to the extent of continuing involvement in the financial asset.

Financial liabilities:

i) Classification as debt or equity

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

ii) Initial recognition and measurement

Financial liabilities are recognized when the Company becomes a party to the contractual provisions
of the instrument. Financial liabilities are initially measured at the fair value.

iii) Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the effective interest rate
method. Financial liabilities carried at fair value through profit or loss are measured at fair value with
all changes in fair value recognized in the Statement of Profit and Loss.

iv) De-recognition

A financial liability is de-recognized when the obligation specified in the contract is discharged,
cancelled or expires.

Offsetting financial instruments:

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where
there is a legally enforceable right to offset the recognized amounts and there is an intention to settle
on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right
must not be contingent on future events and must be enforceable in the normal course of business and
in the event of default, insolvency or bankruptcy of the Company or the counterparty.

Short term employee benefits:

All employee benefits payable within twelve months of service such as salaries, wages, bonus, ex
gratia, medical benefits etc. are recognized in the year in which the employees render the related
service and are presented as current employee benefit obligations within the balance sheet.

Defined contribution plan:

Contributions to defined contribution schemes such as contribution to provident fund, Employees
State Insurance Corporation, National Pension Scheme are charged as an expense to the statement of
profit and loss on the amount of contribution required to be made as and when services are rendered
by the employees. The above benefits arc classified as defined contribution schemes as the company
has no further defined obligations beyond the monthly contributions.

The Liability or Asset, is recognized in the Balance sheet in respect of Gratuity is the present value
of the defined benefit obligation at the end of the reporting period less the fair value of plan assets.
The defined benefit obligation is calculated annually by actuaries using the projected unit credit
method (PUCM).

xvi(.Income Taxes:

The income tax expense or credit for the period is the tax payable on the taxable income of the current
period based on the applicable income tax rates adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences and unused tax losses. The current income tax charge
is calculated on the basis of the lax laws enacted or substantively enacted at the end of the reporting
period. The Management periodically evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject to interpretation. It establishes provisions
where appropriate on the basis of amounts expected to be paid to the tax authorities.

Minimum Alternate Tax (‘MAT’) under the provisions of the Income Tax Act, 1961 is recognized as
current tax in the Statement of Profit and Loss. The credit available under the Act in respect of MAT
paid will be recognized as an asset only when and to the extent there is convincing evidence that the
Company will pay normal income tax during the period for which the MAT credit can be carried
forward for set off against the normal tax liability. Such an asset is reviewed at each Balance Sheet
date

Deferred income tax is provided in full, using the liability method, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts. However, deferred tax
liabilities are not recognized if they arise from the initial recognition of Goodwill. Deferred income
tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction
other than a business combination that at the time of the transaction affects neither accounting profit
nor taxable profit / (tax loss). Deferred income tax is determined using tax rates (and laws) that have
been enacted or substantially enacted by the Balance Sheet date and are expected to apply when the
related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred tax assets arc recognized for all deductible temporary differences and unused tax losses only
if it is probable that future taxable amounts will be available to utilize those temporary differences
and losses. Deferred tax assets and liabilities are offset when there is a legally enforceable right to

offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation
authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable
right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability
simultaneously. Current and deferred tax is recognized in profit or loss, except to the extent that it
relates to items recognized in Other Comprehensive Income or directly in equity. In this case, the tax
is also recognized in Other Comprehensive Income or directly in equity, respectively.

xviD.Cash and cash equivalents:

Cash and cash equivalents include cash in hand, demand deposits with banks and other short term
deposits (three months or less from the date of acquisition), highly liquid investments that are readily
convertible into cash and which are subject to an insignificant risk of changes in value.

xviii) .Sei»mcnt reporting:

The Company operates only in one reportable segment.

xix) .Earnim»s per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to
equity shareholders (after deducting preference dividends and attributable taxes) by the weighted
average number of equity share outstanding during the period.

For the purpose of calculating Diluted Earnings per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of shares outstanding during the
period are adjusted for the effects of all dilutive potential equity shares.