MATERIAL ACCOUNTING POLICIES

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These Financial Statements are the separate financial statements of the Company (also called as
“Financial Statements”) prepared in accordance with Indian Accounting Standard (“Ind AS”) as notified
under section 133 of the Companies Act, 2013 (“the Act”) read together with the Companies (Indian
Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standard) Rule, 2016, as
amended, time to time. The preparation and presentation of the Financial Statements is based on the
Indian Accounting Standards (Ind AS), Division - II of the Schedule - III of the Companies Act, 2013.

Entity specific disclosure of material accounting policies, where the Indian Accounting Standards permits
options are disclosed hereunder:

The Company's management and the Board of Directors has assessed the materiality of the accounting
policy information, which involves exercising judgements and considering both qualitative and
quantitative factors, taking into account not only the size and nature of the items or conditions but also
the characteristics of the transactions, events or conditions that could make the information more likely
to impact the decisions of the users of the Financial Statements.

Entity's conclusion that an accounting policy is immaterial does not affect the disclosures requirements
set out in the Indian Accounting Standards.

The Company adopted Ind AS from April 01, 2020. 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 policies hitherto adopted. 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. Historical cost is generally based on the fair value of the consideration
given in exchange for goods and services. Fair value is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between the market participants at the measurement
date.

The Statement of Cash Flows has been prepared under indirect method, whereby the profit and loss are
adjusted for the effect of transactions of a non-cash nature, any deferrals and accruals or future operating
cash receipts or payments and items of income and expenses associated with investing or financing cash
flows. The cash flows from operating, investing and financing activities of the Company are segregated.
The Company considers all highly liquid instruments that are readily convertible to known amounts of
cash and are subject to an insignificant risk of changes in value to be cash equivalents.

The Company's Financial Statements are prepared and presented in Indian Rupee (') in Lakhs, which is
also the functional currency for the Company. All amounts have been rounded off to the nearest (') in
Lakhs up to two decimals, except when otherwise specified.

1.2 APPLICATION OF NEW ACCOUNTING PRONOUNCEMENTS

Ministry of Corporate Affairs (the “MCA”) notifies the new standards or amendments to the existing
standards under the Companies (Indian Accounting Standard) Rule, as issued from time to time. For the
period ended March 31, 2025, MCA has notified amendments to Ind AS - 116, "Lease", relating to the sale
and leaseback transactions, which is applicable to the Company w.e.f. April 01, 2024. The Company has
reviewed the new pronouncements and based on its evaluation has determined that it is not likely to
have any significant impact in its Financial Statements.

1.3 CURRENT AND NON - CURRENT CLASSIFICATION

The Company presents the assets and liabilities in the balance sheet based on current / non-current
classification. An asset or liabilities are classified as current when it satisfies any of the following criteria:

i) The assets / liabilities are expected to be realized / settled in the Company's normal operating cycle.

ii) The assets are intended for sales or consumption.

iii) The assets / liabilities are held primarily for the purpose of trading.

iv) The assets / liabilities are expected to be realized / settled within twelve months after the end of
reporting date.

v) The assets are cash or cash equivalents unless they are restricted from being exchanged or used to
settle liabilities for at least twelve months after the reporting period.

vi) In the case of liabilities, the Company does not have an unconditional right to defer the settlement of
the liabilities 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 operating cycle as twelve months (12 months). This is based on the nature of services and
the time between the acquisition of the assets or inventories for processing and their realization in cash
and cash equivalents.

1.4 SUMMARY OF MATERIAL ACCOUNTING POLICIES

a) Property, Plant and Equipment
Measurement at Recognition

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

The cost of an item of property, plant and equipment comprises of its purchase price net of discounts, if
any, including import duties and other non-refundable purchase taxes or levies, directly attributable to
cost of bringing the assets to its present location and working condition for its intended use and the initial
estimate of decommissioning, restoration, and similar liabilities, if any. Cost includes the cost of replacing
a part of the plants and equipment, if the recognition criteria are met. Expenses directly attributable to
new manufacturing facilities during its construction period are capitalized, if the recognition criteria are
met. Expenditure related to plans, designs and drawings of buildings or plants and machinery are
capitalized under the relevant heads of property, plant and equipment, if the recognition criteria are met.
When significant parts of property, plant and equipment are required to be replaced at periodical
intervals, the Company recognizes such parts as individual assets with specific useful lives and
depreciates them accordingly.

Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to
the Company and the cost of the item can be measured reliably. The carrying amount of any components
accounted for as a separate asset is de-recognized when replaced.

All the costs, including administrative, financing and general overhead expenses, as are specifically
attributable to construction of a specific projects or to the acquisition of a property, plant and equipment
or bringing it to its present location and working condition, is includes, as a part of the cost of
construction of the project or as a part of the cost of property, plant and equipment, till the
commencement of its commercial production. Any adjustments arising from exchange rate variations
attributable to the property, plant and equipment are capitalized as aforementioned.

Borrowing costs relating to the acquisition / construction of property, plant and equipment which takes
the substantial period of time to get ready for its intended use are also included in the cost of property,
plant and equipment / cost of constructions, to the extent they relate to the period till such property,
plant and equipment are ready to be put to use.

Any subsequent expenditure related to an item of property, plant and equipment is added to its book
value only and only if it increases the future economic benefits from the existing assets beyond its
previously assessed standard of performance.

Any items such as spare parts, stand-by equipment and servicing equipment that meet the definitions
criteria of the property, plant and equipment are capitalized at cost and depreciated over the useful life
of the respective property, plant and equipment. Cost is in the nature of repairs and maintenances are
recognized in the Statement of Profit and Loss as and when incurred.

Capital Work-in-Progress and Capital Advances

Cost of property, plant and equipment not ready for intended use, as at the balance sheet date, is shown
as a "Capital Work-in-Progress". The capital work-in-progress is stated at cost. Any expenditure in
relation to survey and investigation of the properties is carried out as capital work-in-progress, such
expenditure is either capitalized as cost of the projects on completion of construction project or the same
is expensed in the period in which it is decided to abandon such projects. Any advances given towards
acquisition of property, plant and equipment outstanding at each balance sheet date is disclosed as "Other
Non - Current Assets".

The Company has elected to consider the carrying value of all its property, plants and equipment
appearing in its Financial Statements and used the same as deemed cost in the opening Ind AS Balance
Sheet prepared at April 01, 2020.

Depreciation

Depreciation on each part of property, plant and equipment are provided to the extent of the depreciable
amount of the assets on the basis of "Straight Line Method (SLM)" on the useful lives of the tangible
property, plant and equipment as estimated by the Company's management and is charged to the
Statement of Profit and Loss, as per the requirement of Schedule - II to the Companies Act, 2013. The
estimated useful lives of the property, plant and equipment has been assessed based on the technical
advice, which is considered in the nature of the property, plant and equipment, the usage of the property,
plant and equipment, expected physical wear and tear of such property, plant and equipment, the
operating conditions, anticipated technological changes, manufacturer warranties and maintenance
support of the property, plant and equipment etc.

When the parts of an item of the property, plant and equipment have different useful lives, they are
accounted for as separate items (major components) and are depreciated over their useful lives or over
the remaining useful lives of the principal property, plant and equipment, whichever is less.

The useful lives of the items of property, plants and equipment as estimated by the Company's
management is mentioned below:

The Company based on technical assessment made by the technical experts and the Company's
management estimate, depreciate certain items of property, plant and equipment over the estimated
useful lives which are different from the useful lives as prescribed under Schedule - II of the Companies
Act, 2013. The Company's management believes that the useful lives given above are best to represent
the period over which Company's management expects to use this property, plant and equipment.
Freehold land is not depreciated. Leasehold land and their improvement cost are amortized over the
period of the lease.

The useful lives, residual value of each part of an item of property, plant and equipment and method of
depreciation is reviewed at the end of each reporting period, if any, of these expectations differ from the
previous estimates, such change is accounted for as a change in accounting estimate and adjusted
prospectively, if appropriate.

Derecognition

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

b) Intangible Assets

Measurement at Recognition

Intangible assets acquired separately measured on the initial recognition at cost. Intangible assets arising
on the acquisition of businesses are measured at fair value as at the date of acquisition. Internally
generated intangible assets including research costs are not capitalized and the related expenditure is
recognized in the Statement of Profit and Loss in the period, in which the expenditure is incurred.
Following the initial recognition, intangible assets are carried at cost less accumulated amortization and
accumulated impairment loss, if any.

The Company has elected to consider the carrying value of all intangible assets appearing in its Financial
Statements and used the same as deemed cost in the opening Ind AS Balance Sheet prepared at April 01,
2020.

Amortization

Intangible assets with the finite lives are amortized on a "Straight Line Basis" over the estimated useful
economics lives of such intangible assets. The amortization expenses on intangible assets with finite lives
are recognized in the Statement of Profit and Loss. The estimated useful lives of intangible assets are
mentioned below:

The amortization period and the amortization method for an intangible asset with the finite useful lives
are reviewed at the end of each financial year. If any of these expectations differ from the previous
estimates, such changes are accounted for as a change in an accounting estimate and adjusted
prospectively, if appropriate.

Derecognition

The carrying amount of an intangible asset is de-recognized at disposal or when no future economic
benefits are expected from its use or disposal. The gain or loss arising from the de-recognition of an
intangible assets is measured as the difference between the net disposal proceeds and the carrying
amount of the intangible assets and is recognized in the Statement of Profit and Loss, as and when such
assets are de-recognized.

c) Impairment

Assessment for impairment is done at each Balance Sheet date as to whether there is any indication that
a non-financial asset may be impaired. Assets that have an indefinite useful life are not subject to
amortization and are tested for impairment annually and whenever there is an indication that the assets
may be impaired.

Assets that are subject to depreciation and amortization and assets representing investment in
subsidiary and associate companies are reviewed for impairment, whenever events or changes in
circumstances indicate that carrying amount may not be recoverable. Such circumstances include,
though are not limited to, significant or sustained decline in revenues or earnings and material adverse
changes in the economic environments.

The Company assesses at each reporting date, whether there is an indication that assets may be impaired,
if any indication exists based on internal or external factors, or when Annual impairment testing for
assets is required, the Company estimates the asset's recoverable amount. Where the carrying amount
of the assets or its cash generating unit (CGU) exceeds its recoverable amount, the assets are considered
impaired and written down to its recoverable amount. The recoverable amount is greater of the fair value
less cost to sell and value-in-use. In assessing value-in-use, the estimated future cash flows are
discounted to their present value using a pre-tax rate that reflects current market rates and the risk
specific to the assets. For an asset that does not generate largely independent cash inflows, the
recoverable amount is determined for the CGU to which the assets belong. Fair value less cost to sell is
the best estimate of the amount obtainable from the sale of an assets in an arm's length transactions
between knowledgeable, willing parties, less cost of disposal. After the impairment, depreciation is
provided on the revised carrying amount of the assets over its remaining useful lives.

Reversal of impairment losses recognized in prior years is recorded when there is an indication that the
impairment losses recognized for the assets no longer exists or has decreased. However, the increase in
the carrying amount of assets due to the reversal of an impairment loss is recognized to the extent it does
exceed the carrying amount that would have been determined (net of depreciation) had no impairment
loss been recognized for the assets in the prior years.

Impairment losses, if any, are recognized in the Statement of Profit and Loss and included in depreciation
and amortization expense. Impairment losses are reversed in the Statement of Profit and Loss only to the
extent that the asset's carrying amount does not exceed the carrying amount that would have been
determined if no impairment loss had previously been recognized.

d) Revenue Recognition

Revenue from Contracts with Customers

Revenue from contracts with customers is recognized on transfer of control of promised goods or
services to a customer at an amount that reflects the consideration to which the Company is expected to
be entitled in exchange for those goods or services. Revenue towards satisfaction of a performance
obligation is measured in the amount of transaction price (net of variable consideration on accounts of
various discounts and schemes offered by the Company as a part of the Contracts) allocated to that
performance obligation. These variable considerations are estimated based on the expected value of
outflow. Revenue (net of variable consideration) is recognized only to the extent that it is highly probable
that the amount will not be subject to significant reversal when uncertainty relating to its recognition is
resolved.

Sale of Products

Revenue from sales of goods is recognized when control on the goods has been transferred to the
customers. The performance obligation in the case of sale of goods is satisfied at a point in time i.e. when
the material is shipped to the customers or delivery to the customers as may be specified in the contracts
with them.

Sales (Gross) excludes Goods and Service Tax (GST) and is a net of discounts and incentives to the
customers.

Sale of Services

Revenue from sales of service is recognized over the period of time by measuring the progress towards
satisfaction of performance obligation for the service rendered. The revenue is recognized based on the
agreements / arrangements with the customers as the service is performed and based on the satisfaction
of performance obligation.

Advances from customers are recognized under "Other Current Liabilities" and released to revenue on
satisfaction of performance obligation.

Interest

Revenue from interest income is recognized using the effective interest method. Effective interest rate
(EIR) is the rate that exactly discounts the estimated future cash payments or receipts over the expected
life of the financial instruments or a shorter period, where appropriate, to the gross carrying amount of
the financial assets or to the amortized cost of financial liabilities.

Other Income

Other items of income are recognized as and when the right to receive such income arises and it is
probable that the economic benefits will flows to the Company and the amount of income can be
measured reliably.

e) Government Grants and Subsidies
Recognition and Measurements

The Company recognizes grant as income when there is reasonable assurance that the Company will
comply with all the necessary conditions attached to them and the grant will be received, in accordance
with Ind AS - 20, "Accounting for Government Grants and Disclosure of Government Assistance".

Government grants are recognized in the Statement of Profit and Loss on a systematic basis over the
periods in which related costs, which the grants are intended to compensate, are recognized as expenses.
Government grants related to property, plants and equipment are presented at fair value, and grants are
recognized as deferred income.

Presentation

Income from the above grants and subsidies are presented under Revenue from Operations. Government
grants related to property, plants and equipment are presented at fair value, and grants are recognized
as deferred income.

f) Inventories

Raw material, work-in-progress, finished goods, packing material, stores and spares, components,
consumables and trading stock are carried at lower of cost and net realizable value. However, materials
and other items held for use in the production of inventories are not written-down below cost, if the
finished goods in which they will be incorporated are expected to be sold at or above costs. The
comparison of costs and net realizable value is made on an item-by-item basis. In determining the cost
of raw materials, work-in-progress, finished goods, packing materials, stores and spares, components
and trading stock, "Weighted Average" method is used. Cost of inventories comprises all costs of
purchase, non-refundable duties and taxes, cost of conversion including an appropriate share of fixed
and variable production overheads and all other costs incurred in bringing the inventory to its present
location and conditions.

"Net Realizable Value" is the estimated selling price of inventories in the ordinary course of business, less
estimated costs of completion and estimated cost necessary to make the sales of the products.

The Company considers factors like estimated shelf life, product discontinuances and aging of inventory
in determining the provision for slow moving, obsolete and other non-saleable inventory and adjusts the
inventory provision to reflect the recoverable value of the inventory.

g) Financial Instruments

A financial instrument is in any contract that gives rise to the financial assets of one entity and financial
liabilities or equity instruments of another entity.

Financial Assets

Initial Recognition and Measurements

The Company recognizes a financial asset in its Balance Sheet as and when it becomes party to the
contractual provisions of the instruments. All the financial assets are recognized initially at fair value,
plus in the case of financial assets not recorded at fair value through profit or loss (FVTPL), transaction
costs that are attributable to the acquisition of the financial assets. However, trade receivables that do
not contain a significant financing component are measured at transaction price.

Where the fair value of a financial assets at initial recognition is different from its transaction price, the
difference between the fair value and the transaction price is recognized as a gain or loss in the Statement
of Profit and Loss at initial recognition, if the fair value is determined through a quoted market price in
an active market for an identical asset (i.e. level 1 input) or through a valuation technique that uses data
from observable markets (i.e. level 2 input).

In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference
between the fair value and transaction price is deferred appropriately and recognized as a gain or loss in
the Statement of Profit and Loss only to the extent that such gain or loss arises due to a change in factor
that market participants taken into account, when pricing the financial assets.

Subsequent Measurements

For subsequent measurements, the Company classifies a financial asset in accordance with the below
criteria:

i) The Company's business model for managing the financial assets and

ii) The contractual cash flows characteristics of the financial assets.

Based on the above criteria, the Company classifies, its financial assets into the following categories:

i) Financial assets measured at amortized costs

ii) Financial assets measured at fair value through other comprehensive income (FVTOCI)

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

Financial Assets measured at Amortized Costs

A financial asset is measured at the amortized costs if both the following conditions are met:

a) The Company's business model objective for managing the financial assets is to hold financial assets
in order to collect contractual cash flows, and

b) The contractual terms of the financial assets give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

This category applies to cash and bank balances, trade receivables, loans and other financial assets of the
Company. Such financial assets are subsequently measured at amortized cost using the effective interest
method. Under the effective interest method, the future cash receipts are discounted to the initial
recognition value using the effective interest rate. The cumulative amortization using the effective
interest method of the difference between the initial recognition amounts and the maturity amount is
added to the initial recognition value (net of principal repayments, if any) of the financial assets over the
relevant period of the financial assets to arrive at the amortized costs at each reporting date. The
corresponding effect of the amortization, under effective interest method is recognized as interest
income over the relevant period of the financial assets. The same is included under "Other Income" in the
Statement of Profit and Loss. The amortized costs of financial assets are also adjusted for loss allowance,
if any.

Financial Assets measured at FVTOCI

A financial asset is measured at FVTOCI, if both of the following conditions are met:

a) The Company's business model objective for managing the financial assets is achieved both by
collecting contractual cash flows and selling the financial assets, and

b) The contractual terms of the financial assets give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

This category applies to certain investments in debt instruments. Such financial assets are subsequently
measured at fair value at each reporting date. Fair value changes are recognized in the Other
Comprehensive Income (OCI). However, the Company recognizes interest income and impairment losses
and its reversals in the Statement of Profit and Loss.

On de-recognition of such financial assets, cumulative gain or loss previously recognized in OCI, is
reclassified from equity to the Statement of Profit and Loss.

Further, the Company, through an irrevocable election at initial recognition, has measured certain
investments in equity instruments at FVTOCI. The Company has made such selection on an instrument-
by-instrument basis. These equity instruments are neither held for trading nor are contingent
consideration recognized, under a business combination. Pursuant to such irrevocable election,
subsequent changes in the fair value of such equity instruments are recognized in other comprehensive
income. However, the Company recognizes dividend income from such instruments in the Statement of
Profit and Loss, when the right to receive such payment is established, it is probable that the economic
benefits will flow to the Company and the amount can be measured reliably.

On de-recognition of such financial assets, cumulative gain or loss previously recognized in OCI is not
reclassified from equity to the Statement of Profit and Loss. However, the Company may transfer such
cumulative gain or loss into retained earnings within equity.

Financial Assets measured at FVTPL

A financial asset is measured at FVTPL unless it is measured at amortized costs or at FVTOCI as explained
above. This is a residual category applied to all other investments of the Company excluding investments
in subsidiary and associate companies. Such financial assets are subsequently measured at fair value at
each reporting date. Fair value changes are recognized in the Statement of Profit and Loss.

Derecognition

A financial asset (or, where applicable, a part of a financial assets or part of a group of similar financial
assets) is de-recognized (i.e. removed from the Company's Balance Sheet) when any of the following
occurs:

i) The contractual rights to cash flows from the financial assets expire.

ii) The Company transfers its contractual rights to receive cash flows of the financial assets and has
substantially transferred all the risks and rewards of ownership of the financial asset.

iii) The Company retains the contractual rights to receive cash flows but assumes a contractual
obligation to pay the cash flows without material delay to one or more recipients under a "pass¬
through" arrangement (thereby substantially transferring all the risks and rewards of ownership of
the financial assets).

iv) The Company neither transfers nor retains substantially all risk and rewards of ownership and does
not retain control over the financial assets.

In cases, where the Company has neither transferred nor retained substantially all the risks and rewards
of the financial assets, but retains control of the financial assets, the Company continues to recognize
such financial assets to the extent of its continuing involvement in the financial assets. In that case, the
Company also recognizes an associated liability. The financial assets and the associated liabilities are
measured on a basis that reflects the rights and obligations that the Company has retained.

On de-recognition of financial assets, (except as mentioned in above for financial assets measured at
FVTOCI), the difference between the carrying amount and the consideration received is recognized in the
Statement of Profit and Loss.

Impairment of Financial Assets

The Company applies expected credit losses (ECL) model for measurements and recognition of loss
allowance on the following:

i) Trade receivables

ii) Financial assets measured at amortized costs (other than trade receivables)

iii) Financial assets measured at fair value through other comprehensive income (FVTOCI)

In the case of trade receivables, the Company follows a simplified approach wherein an amount equal to
lifetime ECL is measured and recognized as loss allowance. In the case of other assets (listed as ii and iii
above), the Company determines if there has been a significant increase in credit risk of the financial
assets since the initial recognition. If the credit risk of such assets has not increased significantly, an
amount equal to twelve months ECL is measured and recognized as loss allowance. However, if credit
risk has increased significantly, an amount equal to lifetime ECL is measured and recognized as loss
allowance.

Subsequently, if the credit quality of the financial assets improves such that there is no longer a
significant increase in credit risk since initial recognition, the Company reverts to recognizing
impairment loss allowance based on twelve months ECL.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with
the contract and all the cash flows that the entity expected to receive (i.e., all cash shortfalls), discounted
at the original effective interest rate. Lifetime ECL are the expected credit losses resulting from all
possible default events over the expected life of financial assets. Twelve months ECL is a portion of the
lifetime ECL which results from default events that are possible within twelve months from the reporting
date.

ECL are measured in a manner that they reflect unbiased, and probability weighted amounts determined
by a range of outcomes, taking into account the time value of money and other reasonable information
available as a result of past events, current conditions and forecasts of future economic conditions.

As a practical expedient, the Company uses a provision matrix to measure lifetime ECL on its portfolio of
trade receivables. The provision matrix is prepared based on historically observed default rates over the
expected life of trade receivables and is adjusted for forward-looking estimates. At each reporting date,
the historically observed default rates and changes in the forward-looking estimates are updated.

ECL impairment loss allowance (or reversal) recognized during the reporting period are recognized as
income / expense in the Statement of Profit and Loss under the head "Other Expenses".

Financial Liabilities

Initial Recognition and Measurements

The Company recognizes financial liabilities in its balance sheet when it becomes party to the contractual
provisions of the instruments. All financial liabilities are recognized initially at fair value, in the case of
financial liabilities not recorded at fair value through profit or loss (FVTPL), transaction costs that are
attributable to the acquisition of the financial liabilities.

Where the fair value of a financial liabilities at initial recognition is different from its transaction price,
the difference between the fair value and the transaction price is recognized as a gain or loss in the
Statement of Profit and Loss at initial recognition, if the fair value is determined through a quoted market
price in an active market for an identical asset (i.e. level 1 input) or through a valuation technique that
uses data from observable markets (i.e. level 2 input).

In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference
between the fair value and transaction price is deferred appropriately and recognized as a gain or loss in
the Statement of Profit and Loss, only to the extent that such gain or loss arises, due to a change in factor
that market participants taken into account when pricing the financial liabilities.

Subsequent Measurements

All the financial liabilities of the Company are subsequently measured at amortized costs using the
effective interest method.

Under the effective interest method, the future cash payments are exactly discounted to the initial
recognition value using the effective interest rate. The cumulative amortization using the effective
interest method of the difference between the initial recognition amount and the maturity amount is
added to the initial recognition value (net of principal repayments, if any) of the financial liabilities over
the relevant period of the financial liabilities to arrive at the amortized costs at each reporting date. The
corresponding effect of the amortization, under effective interest method are recognized as interest

expense over the relevant period of the financial liabilities. The same is included under finance costs in
the Statement of Profit and Loss.

Derecognition

A financial liability is de-recognized when the obligation under the liabilities is discharged or cancelled
or expires. When existing financial liabilities are replaced by another from the same lender on
substantially different terms, or the terms of an existing liabilities are substantially modified, such an
exchange or modification are treated as the de-recognition of the original liabilities and the recognition
of a new liabilities. The difference between the carrying amount of the financial liabilities de-recognized
and the consideration paid is recognized in the Statement of Profit and Loss.

Offsetting of Financial Assets and Financial Liabilities

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 or to realize the assets and settle the liabilities simultaneously.

h) Derivative 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 formally establishes a hedge relationship between
such forward currency contracts ("Hedging Instruments") and recognized financial liabilities ("Hedged
Items") through a formal documentation at the inception of the hedge relationship in line with the
Company's Risk Management objective and strategy.

The hedge relationship so designated is accounted for in accordance with the accounting principles
prescribed for a fair value hedge under Ind AS - 109, "Financial Instruments".

Recognition and Measurement of Fair Value Hedge

Hedging instruments are initially recognized at fair value on the date on which a derivative contract is
entered into and are subsequently measured at fair value at each reporting date. Gain or loss arising from
such changes in the fair value of hedging instruments is recognized in the Statement of Profit and Loss.
Hedging instruments is recognized as financial assets in the Balance Sheet, if it's fair value as at reporting
date is positive as compared to carrying value and as financial liabilities, if it's fair value as at reporting
date is negative as compared to carrying value.

Hedged items (recognized financial liabilities) are initially recognized at fair value on the date of entering
into the contractual obligation and are subsequently measured at amortized costs. The hedging gain or
loss on the hedged items is adjusted to the carrying value of the hedged item as per the effective interest
method and the corresponding effects are recognized in the Statement of Profit and Loss.

Derecognition

On de-recognition of the hedged items, the unamortized fair value of the hedging instrument adjusted to
the hedged items, is recognized in the Statement of Profit and Loss.

i) Fair Value

The Company measures financial instruments at fair value in accordance with the accounting policies
mentioned above. 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 assets or transfer the liabilities
takes place either:

* In the principal market for the assets or liabilities, or

* In the absence of a principal market, in the most advantageous market for the assets or liabilities.

All the assets and liabilities for which fair value is measured or disclosed in the Financial Statements are
categorized within fair value hierarchy that categorizes into three levels, described are as follows, the
inputs to valuation techniques used to measure value. The fair value hierarchy gives the highest priority
to quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority
to unobservable inputs (Level 3 inputs).

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

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the assets or
liabilities, either directly or indirectly.

Level 3 - Inputs that are unobservable for the assets or liabilities.

For assets and liabilities that are recognized in the Financial Statements at fair value on a recurring basis,
the Company determines whether transfers have occurred between levels in the hierarchy by re¬
assessing categorization at the end of each reporting period and discloses the same.

j) Foreign Currency Transactions

a) Initial Recognition

Transactions in the foreign currencies entered into by the Company are accounted in the functional
currency (i.e. Indian Rupee '), by applying the exchange rates prevailing on the date of the transaction i.e.
spot exchange rate. Any exchange difference arising on foreign exchange transactions settled during the
reporting period are recognized in the Statement of Profit and Loss except to the extent that they are
regarded as an adjustment to the finance costs on foreign currency borrowings that are directly
attributable to the acquisition or constructions of the qualifying assets, are capitalized to the qualifying
assets.

b) Measurement of Foreign Currency Items at Reporting Date

Foreign currency monetary items of the Company are restated as at the end of the reporting date by using
the closing exchange rate as prescribed by the Reserve Bank of India. Non-monetary items are recorded
at the exchange rate prevailing on the date of the transactions i.e. measured at historical costs. 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 i.e. using the exchange rate at the date of transactions.
Exchange differences arising out of foreign exchange translations and settlements during the period are
recognized in the Statement of Profit and Loss.

k) Taxes on Income

Tax expense comprises current tax and deferred income tax. Tax expenses are the aggregate amount
included in the determination of profit or loss for the reporting period current tax and deferred income
tax. Tax expenses are recognized in the Statement of Profit and Loss, except to the extent that it relates
to the items recognized in the other comprehensive income or in the equity. In that case, tax is also
recognized in other comprehensive income or equity.

Current income tax is the amount of income tax payable in respect of taxable profit for the reporting
period. Taxable profit differs from "Profit Before Tax" as reported under the Statement of Profit and Loss
because of item of expenses or income that are taxable or deductible in other years and items that are
never taxable or deductible under Income Tax Act, 1961.

Current tax assets and liabilities are measured by using the tax rates that have been enacted by the end
of the reporting period for the amounts expected to be recovered from or paid to the income tax
authorities. Current tax also includes any adjustment amount to tax payable / receivable in respect of
previous reporting period.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and
liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable
profit under Income Tax Act, 1961 and their carrying amounts. Deferred tax is measured based on the
tax rates and the tax laws enacted or substantively enacted at the reporting date.

Deferred tax assets and liabilities are generally recognized for all deductible and taxable temporary
differences. However, in the case of temporary differences that arise from initial recognition of assets or
liabilities in a transaction (other than business combination) that affect neither the taxable profits nor
the accounting profits or does not give rise to equal taxable and deductible temporary difference,
deferred tax assets and liabilities are not recognized. Also, for temporary differences, if any, that may
arise from initial recognition of goodwill, deferred tax liabilities are not recognized.

Deferred tax assets are generally recognized for all deductible temporary differences, and any unused
tax losses and unused tax credits, to the extent, it is probable that taxable profits will be available against
which those deductible temporary difference can be utilized. In the case of temporary differences that
arise from initial recognition of assets or liabilities in a transaction that affect neither the taxable profits
nor the accounting profits, deferred tax assets are not recognized.

The carrying amount of deferred tax assets / liabilities are reviewed at the end of each reporting period
and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to
allow the benefits of part or all such deferred tax assets to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively
enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those
temporary differences are expected to be recovered or settled.

Uncertain Tax Positions

The Company's management periodically evaluates the positions taken in the tax returns with respect to
situations in which applicable tax regulations are subject to interpretation and consider whether it is
probable that a taxation authority will accept uncertain tax treatments. The Company reflects the effect
of uncertainty for each uncertain tax treatment by using one of two methods, the expected value method
(the sum of the possibility-weighted amounts in range of possible outcomes) or the most likely amount
(single most likely amount method in a range of possible outcomes), depending on which is expected to
better predict the resolution of the uncertainty. The Company applies consistent judgments and
estimates, if an uncertain tax treatment affects both the current and deferred income tax.

Presentation

Current tax and deferred tax are recognized as income or an expense in the Statement of Profit and Loss,
except when they relate to items that are recognized in other comprehensive income, in which case, the
current tax and deferred tax income / expense are recognized in other comprehensive income.

The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right
to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the
assets and settle the liabilities simultaneously. In case of deferred tax assets and deferred tax liabilities,
the same are offset, if the Company has a legally enforceable right to set off corresponding current tax
assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to
income taxes levied by the same tax authority on the Company.

l) Lease

A lease is classified at the inception date, as finance lease or an operating lease. A lease that transfers
substantially all the risk and rewards incidental to the ownership of the Company is classified as a finance
lease. All other leases are classified as operating leases.

The Company as a Lessee

a) Operating Lease: Rental payable under the operating lease is charged to the Statement of Profit and
Loss on a "Straight - line" basis over the term of the relevant lease except where another systematic
basis is more representative of time pattern in which economic benefits from the leased assets are
consumed.

b) Finance Lease: Finance leases are capitalized at the commencement of the lease, at the lower of the
fair value of the property or the present value of the minimum lease payments. The corresponding
liabilities for the lessor are included in the Balance Sheet as a finance lease obligation. Lease
payments are appropriated between finance expenses and the reduction of the lease obligation so as
to achieve a constant rate of interest on the remaining balance of the liabilities. Finance expenses are
charged directly against the income over the period of the lease unless they are directly attributable
to the qualifying assets, in which case they are capitalized. Contingent rental is recognized as an
expense in the period in which they are incurred.

A leased assets are depreciated over the useful lives of the assets, however, if there is no reasonable
certainty that the Company will obtain ownership by the end of the lease term, the assets are
depreciated over the shorter of the estimated useful lives of the assets and the lease terms.

The Company as a Lessor:

Lease payments under operating leases are recognized as an income on a straight-line basis in the
Statement of Profit and Loss over the lease term except where the lease payments are structured to
increase in line with expected general inflation. The respective leased assets are included in the Balance
Sheet based on their nature.

m) Borrowing Costs

Borrowing cost include the interest, commitments charges on bank borrowings, amortization of ancillary
costs incurred in connection with the arrangement of borrowings and exchange differences arising from
foreign currency borrowings to the extent they are regarded as an adjustment to the finance cost.

Borrowing costs, if any, that are directly attributable to the acquisition or constructions or production of
qualifying property, plant and equipment are capitalized as a part of cost of that property, plant and
equipment until such time that the assets are substantially ready for their intended use. Qualifying assets
are assets which take a substantial period of time to get ready for the intended use or sale.

When the Company borrows the funds specially for the purpose of obtaining the qualifying assets, the
borrowing costs incurred are capitalized with the qualifying assets. When the Company borrows fund
generally and use them for obtaining a qualifying asset, the capitalization of borrowing costs is computed
on weighted average cost of general costs that are outstanding during the reporting period and used for
acquisition of the qualifying assets. Capitalization of the borrowing costs ceases when substantially all
the activities necessary to prepare the qualifying assets for intended use are complete.

Other borrowing costs are recognized as expenses in the period in which they are incurred. Any interest
income earned on temporary investment of specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for capitalization.

n) Employee Benefits

Short-Term Employee Benefits

All the employee benefits payable wholly within twelve months of rendering the services are classified
as short-term employee benefits and they are recognized in the period in which the employee renders
the related services. The Company recognizes the undiscounted amount of short-term employee benefits
expected to be paid in exchange for services are rendered as a liability (accrued expense) after deducting
any amount already paid.

Post - Employment Benefits

a) Defined Contribution Plans

Defined contribution plans are employee state insurance scheme and Government administrated
pension fund scheme for all the applicable employees and superannuation scheme for all the eligible
employees, who met eligible criteria. The Company's contribution to defined contribution plans is
recognized in the Statement of Profit and Loss in the reporting period to which they relate.

i) Recognition and Measurement of Defined Contribution Plans

The Company recognizes contribution payable to a defined contribution plan as an expense in the
Statement of Profit and Loss, when the employees render services to the Company during the reporting
period. If the contributions payable for services received from employees before the reporting date
exceed the contributions already paid, the deficit payable is recognized as a liability after deducting the
contribution already paid. If the contribution already paid exceeds the contribution due for services
received before the reporting date, the excess is recognized as an asset to the extent that the prepayment
will lead to, for example, a reduction in future payments or a cash refund.

b) Defined Benefits Plans

i) Gratuity

The Company operates a defined benefits plan for its employees. The Company pays the gratuity to
employee whoever has completed its five years of service with the Company at the time of retirement or
resignation or superannuation. The gratuity is paid @ 15 Days salary for every completed year of service
as per the Payment of Gratuity Act, 1972.

The liabilities in respect of gratuity are calculated using "Project Unit Credit Method" and spread over the
period during which the benefits are expected to be derived from employee services. The
remeasurements of defined benefits plan in respect of post-employments are charged to the other
comprehensive income (OCI).

ii) Provident Fund Scheme

Provident fund is defined contribution plan covering certain eligible employees. The Company and the
eligible employees make a monthly contribution to the provident fund maintained by the regional

provident fund commissioners equal to the specified percentage of the basic salary of the eligible
employees as per the scheme. The contributions to the provident fund are charged to the Statement of
Profit and Loss for the period when the contributions are due. The Company has no obligation, other than
the contributions payable to the provident fund.

iii) Pension Scheme

The Company operates a defined benefit pension plan for certain specified employees and is payable
upon the employee satisfying certain conditions, as approved by the Board of Directors.

iv) Post - Retirement Medical Benefit Plan

The Company operates a defined post-retirement medical benefits plan for certain specified employees
and is payable upon the employee satisfying certain conditions.

v) Leave Encashment

Accumulated leave, which is expected to be utilized within the next twelve months, is treated as short¬
term employee benefits for measurement purposes. The Company measures the expected cost of such
absence as the additional amount that are expected to pay as a result of unused entitlement that has
accumulated at the reporting date.

The Company treats accumulated leave expected to be carried forward beyond twelve months, as long¬
term employee benefits for measurement purpose. Such long-term compensated absences are provided
based on the actuarial valuation using the "Project Unit Credit Method" at the reporting date. Actuarial
gain / losses are immediately taken to the Statement of Profit and Loss and are not deferred.

Recognition and Measurement of Defined Contribution Plans

The cost of providing defined benefits is determined using the "Projected Unit Cash Credit" method with
actuarial valuations being carried out at each Balance Sheet date. The defined benefit obligations
recognized in the Balance Sheet represent the present value of the defined benefit obligations as reduced
by the fair value of plan assets, if any. Any defined benefit assets (negative benefit defined obligations
resulting from these calculations) are recognized representing the present value of available refunds and
reductions in future contributions to the plan.

All expenses represented by current service cost, past service cost, if any, and net interest on defined
benefit liabilities / (assets) are recognized in the Statement of Profit and Loss. Remeasurement of the net
defined benefits liabilities/ (assets) comprising actuarial gains and losses and the return on the plan
assets (excluding amounts included in net interest on the net defined benefit liabilities /assets), are
recognized in other comprehensive income. Such remeasurements are not reclassified to the Statement
of Profit and Loss in the subsequent periods.

Past service cost is recognized immediately to the extent that the benefits are already vested, else is
amortized on a straight-line basis over the average period until the amended benefits become vested.

Actuarial gain or losses in respect of the defined benefits plan are recognized in the Statement of Profit
and Loss in the year in which they arise.

The Company presents the above liabilities as current and non-current in the balance sheet as per the
actuarial valuation by the independent actuary.

o) Earnings per Share

The Company reports the basic and diluted Earnings per Share (EPS) in accordance with Ind AS - 33,
"Earnings per Share". Basic EPS is computed by dividing the net profit or loss attributable to the equity
shareholders of the Company for the period by the weighted average number of Equity shares
outstanding during the period.

Diluted EPS is computed by dividing the net profit or loss attributable to the equity shareholders for the
period by the weighted average number of Equity shares outstanding during the period as adjusted for
the effects of all potential equity shares, except where the results are anti-dilutive.

The weighted average number of Equity shares outstanding during the period is adjusted for events such
a bonus Issue, bonus elements in right issue, share splits, and reverse share split (consolidation of shares)
that have changed the number of Equity shares outstanding, without a corresponding change in
resources.