b. Rights, preferences and restrictions attached to equity shares:

(i) The Company has only one class of shares referred to as equity shares having par value of Rs 10 each.

(ii) Each holder of the equity share, as reflected in the records of the Company as of the date of the shareholders' meeting, is entitled to one vote in respect of each share held for all matters submitted to vote in the shareholders' meeting.

(iii) The Company declares and pays dividends in Indian Rupees.The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing General Meeting.

(iv) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company after distribution of all preferential amounts.The distribution will be in proportion to the number of equity shares held by the shareholders.

(v) Each Share holder has a right to inspect the statutory registers of the company as per the provisions of the companies act, 2013.

(vi) Each and every share holder has a right to participate in the share holders's meetings as and when called by the company subject to provisions of the Companies Act, 2013.

(d) Shares reserved for issue under options & contracts/commitments for sale of shares /disinvestment, including the terms & amounts - NIL

(e) For period of 5 years immediately preceding the balance sheet date.

- Alloted as fully paid up by way of bonus shares NIL

- Bought back NIL

- For consideration other than cash- NIL

(f) Securities convertible into equity /preference shares issued - NIL

(g) No Calls Unpaid

(h) Issue of securities made for a specific purpose at the balance sheet date - NIL

Nature and purpose of reserves Retained Earnings :

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distribution to share holders.

Securities premium:

The amount received in excess of face value of the equity shares is recognised in securities premium. This reserve will be utilised in accordance with provisions of Section 52 of the Companies Act, 2013.

General reserve:

The Company has transferred a portion of its net profit before declaring dividend to general reserve pursuant to the earlier provisions of the Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013

Other Comprehensive Income (OCI):

Re-measurement of defined employee benefit plans

Difference between the interest income on plan assets and the return actually achieved, any changes in the liabilities over the year due to changes in actuarial assumptions or experience adjustments with in the plans, are recognised in other comprehensive income and subsequently not reclassified into standalone statement of profit and loss

i) A Term loans (including current maturities of non-current borrowings) from South Indian Bank Limited -Term Loan 1

As at 31 March 2024 : Rs. 362.81 lakhs (31 March 2023 : Rs.394.89 lakhs)

Security

i. All the property bearing municipal no 6/3 situated at Vasanthnagar, new ward number 63, Bengaluru consisting of 6825 square feet land owned by the Company

Repayment and interest

ii. The loan was repayable in 154 monthly instalments starting from March 2018.

iii. The loan carried interest rate equal to the lender's 12 month's MCLR rate

B Term loans (including current maturities of non-current borrowings) from South Indian Bank Limited -Term Loan 2

As at 31 March 2024 : Rs.273 lakhs (31 March 2023 : Rs. 289.53 lakhs)

Security

i. All the property bearing municipal no 6/3 situated at Vasanth Nagar, new ward number 63, Bengaluru consisting of 6825 square feet land owned by the Company

Repayment and interest

ii. The loan was repayable in 180 monthly instalments starting from April 2018.

iii. The loan carried interest rate equal to the applicable 12 month's MCLR rate

C Term loans (including current maturities of non-current borrowings) from Canara Bank.

As at 31 March 2024 : Rsll4.ll lakhs (31 March 2023 : Rs.137.32 lakhs)

Security

i. Hypothecation of Plant and Machinery which were funded from the term loan. For all the limits sanctioned by bank including term loan, charge on current assets of the Company along with HDFC Bank limited and Canara Bank and first charge on the property located in Plot 6lB, Bommasandra, Bengaluru and personal guarantee of Mr Shailesh Siroya (managing director)

Repayment and interest

I. The disbursed loan to be repayable in 84 months with 5 months of moratorium and 1 month for project implementation

ii. The loan carried interest rate equal to the applicable RLLR(presently 6.90%) 2.80% 0.8% (Liquidity Premium)

D Term loans (including current maturities of non-current borrowings) from Canara Bank.

As at 31 March 2024 : Rs 274.00 lakhs (31 March 2023 : Rs.274.00)

Security

i. The assets created out of the credit facility so extended, that is, paripassu first charge on the entire current assets of the Company Repayment and interest

i. The disbursed loan to be repayable in 72 months with 24 months of moratorium

ii. The loan carried interest rate equal to the applicable RLLR(presently 6.90%) 0.60%= 7.5%

ii) Details of securities, repayment and interest of secured term loans from others (including current maturities of long-term debt):

A Term loans (including current maturities of non-current borrowings) from STCI Finance Limited

As at 31 March 2024 : Rs 1500 lakhs (31 March 2023 : Rs.Nil)

Security

i. Exclusive Charge by way of mortgage of Plot No.C-155, Mewar Industrial Area, Udaipur, Rajasthan - 313003, presently mortgaged in favour of TFSL towards Term loan which has taken over by STCI Finance Limited

ii. First and Exclusive charge on entire present and future Fixed Assets (both movable and Immovable of Golden Drugs Pvt Ltd.

Repayment and interest

i. The loan is repayable in 60 monthly instalments shall commence from the end of the 12th month succeding the month of first disbursement.Starting from Jan'25 with an initial moratorium of 12 months

ii. The loan carried interest rate equal to the lender's long term lending rate @ 12.50% p.a payable monthly.

B Term loans (including current maturities of non-current borrowings) from Small Industries Development Bank of India (SIDBI)

As at 31 March 2024 : Rs 182.00 lakhs (31 March 2023 : Rs.0.00 lakhs)

Security

i. First Charge by way of hypothecation of Plant and Machinery pertaining to the project of Rs.429 Lakhs, ii.Collateral Security FDR of Rs. 129 lakh lien mark with SIDBI in favour of Borrower and unconditional joint and several personal guarantee of Mr Shailesh Siroya (Managing director) and MrVHimesh, Executive Director Repayment and interest

i. The loan is repayable in 54 monthly instalments starting from June 2024 with a initial moratorium of 6 months

ii. The loan carried interest rate equal to the lender's long term lending rate @ 7.80% pa

iii) Details of securities, repayment and interest of Working Capital Term Loan under GECL scheme (including current maturities of long-term debt):

A Working CapitalTerm Loans (including current maturities of non-current borrowings) from Canara Bank limited - 01

As at 31 March 2024 : Rs 191.67 (31 March 2023 : Rs.291.67 lakhs)

Security

i. The Loan is secured by all assets created out of credit facility

ii. The Loan is further secured by extending the charges created over existing loan.

iii. The facility is to be covered under Emergency Credit Line Guarantee Scheme (ECLGS) administered by National Credit Guarantee Trustee Company (NCGTC) Limited

Repayment and interest

i. Initial moratorium of 12 months and thereafter repayable in 48 months as Rs 8.35 lakhs per month for 47 months and Rs 7.55 lakh per month for 1 month

ii. The loan carried interest rate equal to the lender's long term lending rate @ 7.50% p.a

B Working CapitalTerm Loans (including current maturities of non-current borrowings) from HDFC Bank Limited-02

As at 31 March 2024 : Rs 487.50 lakhs (31 March 2023 : Rs.650 lakhs)

Security

i. The Loan is secured by all assets created out of credit facility

ii. The Loan is further secured by extending the charges created over existing loan.

iii. The facility is to be covered under Emergency Credit Line Guarantee Scheme (ECLGS) administered by National Credit Guarantee Trustee Company (NCGTC) Limited

Repayment and interest

i. Total tenor of 60 months with 12 months moratorium period .

ii. The loan carried interest rate equal to 7.5%.p.a

C Working CapitalTerm Loans (including current maturities of non-current borrowings) from HDFC Bank Limited-03

As at 31 March 2024 : Rs 800 lakhs (31 March 2023 : Rs.800 lakhs)

Security

i. The Loan is secured by all assets created out of credit facility

ii. The Loan is further secured by extending the charges created over existing loan.

iii. The facility is to be covered under Emergency Credit Line Guarantee Scheme (ECLGS) administered by National Credit Guarantee Trustee Company (NCGTC) Limited

Repayment and interest

i. Total tenor of 48 months with 24 months moratorium period .

ii. The loan carried interest rate equal to 8%.p.a

D Working Capital demand Loans (including current maturities of non-current borrowings) from HDFC Bank Limited

As at 31 March 2024 : Rs 500 lakhs (31 March 2023 : Rs. Nil )

Security

I. The Loan is secured by all assets created out of credit facility

ii. The Loan is further secured by extending the charges created over existing loan.

Repayment and interest

I. Total tenor of 6 months and amount to be paid with in three instalment after 120 days -1.5Cr, 150 days -1.5 Cr and 180 days -2.00 Cr respectively from the date of first disbursement . ii. The loan carried interest rate equal to 8.75%.p.a

iv) Details ofVehicle loans (including current maturities of long-term debt):

A Vehicle Loans (including current maturities of non-current borrowings) from Canara Bank Limited- COROLA

As at 31 March 2024 : Rs.1.73 lakhs (31 March 2023 : Rs. 4.14 lakhs)

(i) Secured by hypothecation of motor vehicles.

(ii) These loans carry an interest rate of 9.20%.

(iii) The principal amount has to be repaid in 60 equated monthly instalments.

B Vehicle Loans (including current maturities of non-current borrowings) from HDFC Bank Limited - INNOVA HYCROSS

As at 31 March 2024 : Rs.26.71 lakhs (31 March 2023 : Rs.Nil)

(i) Secured by hypothecation of motor vehicles.

(ii) These loans carry an interest rate of 8.50%

(iii) The principal amount has to be repaid in 60 equated monthly instalments

C Vehicle Loans (including current maturities of non-current borrowings) from HDFC Bank Limited - MAHINDRA XUV700AX7 AWD

As at 31 March 2024 : Rs.28.04 lakhs (31 March 2023 : Rs.Nil)

(i) Secured by hypothecation of motor vehicles.

(ii) These loans carry an interest rate of 9 %

(iii) The principal amount has to be repaid in 60 equated monthly instalments

D Vehicle Loans (including current maturities of non-current borrowings) from HDFC Bank Limited - GLANZA 1.2 G P MT

As at 31 March 2024 : Rs.6.89 lakhs (31 March 2023 : Rs.Nil)

(i) Secured by hypothecation of motor vehicles.

(ii) These loans carry an interest rate of 9 %

(iii) The principal amount has to be repaid in 60 equated monthly instalments

E Vehicle Loans (including current maturities of non-current borrowings) from HDFC Bank Limited - EECO AMBULANCE

As at 31 March 2024 : Rs.5.3 lakh (31 March 2023 : Rs.Nil)

(i) Secured by hypothecation of motor vehicles.

(ii) These loans carry an interest rate of 10%

(iii) The principal amount has to be repaid in 39 equated monthly instalments.

F Vehicle Loans (including current maturities of non-current borrowings) from Bank of Baroda

As at 31 March 2024 : Rs.2.28 lakhs (31 March 2023: Rs 6.04 lakhs)

(i) Secured by hypothecation of motor vehicles.

(ii) These loans carry an interest rate of 7.35%

(iii) The principal amount has to be repaid in 36 equated monthly instalments.

G Vehicle Loans (including current maturities of non-current borrowings) from Mercedes- Benz Financial Services India Pvt Ltd

As at 31 March 2024 : Rs.47.64 lakhs (31 March 2023: Rs. 60.18 lakhs)

(i) Secured by hypothecation of motor vehicles.

(ii) These loans carry an interest rate of 7.27%

(iii) The principal amount has to be repaid in 60 equated monthly instalments.

H Vehicle Loans (including current maturities of non-current borrowings) from Union Bank of india - EECO

As at 31 March 2024 : Rs.3.37 lakhs (31 March 2023: Rs.4.14)

(i) Secured by hypothecation of motor vehicles.

(ii) These loans carry an interest rate of 9.45%

(iii) The principal amount has to be repaid in 60 equated monthly instalments.

v) Details of Unsecured loans (including current maturities of long-term debt) from Kotak Mahindra Bank Limited:

A Kotak Mahindra Bank Limited-Jaldi Loan-Personal Loan-01

As at 31 March 2024 : Rs.77.67 lakhs (31 March 2023: Rs.Nil)

i.The Loan is Not secured and sanctioned loan under Jaldi Loan credit facility offered by Kotak Mahindra Bank Limited Repayment and interest

i. Total tenor of 24 months without any moratorium period .

ii. The loan carried interest rate equal to 14.17 %.p.a

B Kotak Mahindra Bank Limited-Jaldi Loan-Personal Loan-02

As at 31 March 2024 : Rs.42.82 lakhs (31 March 2023: Rs.Nil)

i. The Loan is Not secured and sanctioned loan under Jaldi Loan credit facility offered by Kotak Mahindra Bank Limited Repayment and interest

i. Total tenor of 24 months without any moratorium period .

ii. The loan carried interest rate equal to I4.50%.p.a

vi) There are no defaults in repayment of principal or interest to lenders as at the balance sheet date, however, in certain cases based on information available as on date, there exists a difference between the balance as per schedule and balance as per books

a) The following are delay in repayments towards loan for the year ended March 31,2023

- In case of vehicle loans taken from HDFC Bank Limited, the terms of which is stipulated in (iv) above, there is a delay in repayment for April, May. June , July.Augsut & September months as PNB bank where auto debit was linked is closed as per RBI Guidlines , hence delay occured.

- In case of one of the term loans taken from HDFC Bank Limited, the terms of which is stipulated in (i) above, there is a delay in repayment for the month of May 22, by two days. July 22, by six days.Aug 22, by Eight days.

- In case of term loan taken from TATA capital financial Services limited, the terms of which is stipulated (i) above, ther is delay in repayment for the month ofJuly-22 by 3 days, Sep-22 by one day , Dec-22 by one day, Mar-23 by one day

In case of vehicle loans taken from Mercedes Benz Financial Services India Pvt Ltd, the terms of which is stipulated in (iv) above, there is a delay in repayment for 1 day in the month of Sep' 22

b) The following are delay in repayments towards loan for the year ended March 31,2024

In case of vehicle loans taken from HDFC Bank Limited, the terms of which is stipulated in (iv) above, there is a delay in repayment for 13 days in the month of Aug 23 where auto debit was linked is rejected due to signature mismatch.

In case of vehicle loans taken from HDFC Bank Limited, the terms of which is stipulated in (iv) above, there is a delay in repayment for 7 days in the month of Mar 24 where auto debit was linked is rejected due to signature mismatch.

In case of vehicle loans taken from Mercedes Benz Financial Services India Pvt Ltd, the terms of which is stipulated in (iv) above, there is a delay in repayment for 7 days in the month of Apr' 23 where auto debit was linked is rejected due to signature mismatch in ECS form.

In case of Unsecured loans taken from Kotak Mahindra Bank Limited-01, the terms of which is stipulated in (v) above, there is a delay in epayment for 2 days in the month of Dec' 23 where auto debit was linked is rejected due to signature mismatch in ECS form.

Note 1 : The Company has received show cause notices under the Central Excise laws and Service Tax laws in for the years 2007-08 onwards which in various stages of assessment as at 31 March 2024.The assessments are in progress and the Company has not received the assessment order in respect of the same. In certain cases, the Company has preferred an appeal which has been remanded back to the original authority for reassessment.

Other Disputes

The Company is also involved in other lawsuits, claims, investigations and proceedings, which arise in the ordinary course of business, however, there are no such matters pending that the company expects to be material in relation to its business.

43. Confirmations

Balances ofTrade Receivables, Trade Payables, Loans and Advances, Receivables and Payables are subject to confirmation / reconciliation, if any

44. Earnings per share

Basic EPS amounts are calculated by dividing the income for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year.The Company has no potentially dilutive instruments.

47. Leases

(a) Company as a lessee

The Company adopted Ind-AS 116, on all lease contracts, except for the leases with a term of twelve month or less (short term leases) and low value leases using the modified retrospective method with Right-of-use assets recognised at an amount equal to the lease liabilities in the balance sheet. The Right-of-use assets as on March 31,2023 and March 31,2024 have been presented as part of Property, plant and equipment. For these short term leases, the Company recognises the lease payments as an operating expense on a straight line basis over the period of lease.

48. Export Benefit Incentives

Export benefit Incentives includes Duty Drawback (‘DBK’), Focus Marketing incentive scheme(FMS), Focus product scheme (FPS), Market Linked Product Scheme (MLPS), Incremental Exports incentive scheme, Merchandise Export India Scheme, Service tax rebate scheme (STR) and Remission of Duties or Taxes on Export Products Scheme .The Company has accounted an amount of Rs. 279.49 lakhs (31 March 2023 : Rs. 207.13 lakhs ) under "other operating revenue", being the net amount of credit under various export incentive schemes as announced under Foreign trade Policy.The same will be either be sold or utilized for off-setting customs duty on future imports.The accumulated amount outstanding on this account as on 31 March 2024 is Rs. 248.75 lakhs (31 March 2023 is Rs. 193.70 lakhs) and the same is reflected under Export Incentives Receivable.

49. Segment reporting

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses and for which discrete financial information is available.The operating segments’ operating results are reviewed by the Chief Operating Decision Maker (Board of Directors) to make decisions about resources to be allocated to the segments and assess their performance. The Company’s business activities fall within one component namely, "manufacturing and marketing of pharmaceutical formulations and active pharmaceutical ingredients". Accordingly, separate disclosures per the requirements of Ind AS 108, Operating Segments, are not considering necessary.

In accordance with Ind AS-108 “Operating Segments”, information about geographical areas has been given in the Consolidated Financial Statements of Bal Pharma Limited and therefore, no separate disclosure on geographical areas is given in these financial statements

52. Note on Suspended Activities in Unit located at Pune

"The Management of the Company has decided to suspend the operations of its IV fluids and parenterals manufacturing facility at Pune as this unit has been consistently incurring operational losses due to various reasons such as higher costs of raw materials, escalation in production cost, employee cost, lack of adequate orders and thin margins on products manufactured.The above have led to a situation wherein any further efforts to restore the profitability of the unit will be futile.

This decision was taken as part of the restructuring exercise undertaken by the Company to streamline its operations and to exit from its noncore businesses, so that further deterioration of its noncore business revenues can be plugged. The management is considering both avenues of disinvestment of the Unit or partnering with an outside party, whichever is beneficial. "

(b) Defined Benefit Plans and other Long term plans

In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit retirement plan (Gratuity Plan). The Gratuity Plan provides a lump sum payment to vested employees, at retirement or termination of employment, an amount based on the respective employee's last drawn salary and the number of years of employment with the Company.

Actuarial Valuation for compensated absences is done as at the year end and the provision is made as per Company policy with corresponding (gain)/charge to the statement of profit and loss and it covers all regular employees. Obligation in respect of earned leave policy are actuarially determined as at the year end using the ‘Projected Unit Credit' method.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for gratuity benefit and leave encashment

60. Financial Instruments - Financial risk management

The Company has exposure to following risks arising from financial instruments- Market Risk

- Credit Risk

- Liquidity Risk

The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management framework.The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities.

The Company's audit committee oversees how management monitors compliance with the Company's risk management policies and procedures and reviews the adequacy of the risk management framework in relations to the risks faced by the Company.

A Market Risk

1) Currency Risk

The Company operates internationally and a major portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk to the extent that there is mismatch between the currencies in which its sales and services and purchases from overseas suppliers in various foreign currencies. However as the Company exports as well as imports goods and services, the Company has a natural hedging due to its operations. Market Risk is the risk that changes in market prices such as foreign exchange rates will effect company's income or value of its holding financial assets/ instruments.The exchange rate between the Rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the results of the Company's operations are adversely affected as the Rupee appreciates/ depreciates against US dollar (USD), Euro (EUR), Dhirams (AED) and Others.

2 Interest rate Risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates, in cases where the borrowings are measured at fair value through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

a) Exposure to Interest Rate Risk

The interest rate profile of the Company's interest-bearing financial instruments as reported :

(b) Fair value sensitivity analysis for fixed-rate instruments

The Company's fixed rate instruments are carried at amortised cost.They are therefore not subject to interest rate risk as defined as per Ind AS 107, since neither the carrying amount nor future cash flows will fluctuate because of change in market interest rates.

(c) Cash flow sensitivity analysis for variable-rate instruments

A reasonable possible change of 2% (200 basis points) in interest rates at the reporting date would have increased/ (decreased) equity and profit or loss by the amounts shown below.This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant.

B Liquidity Risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Maturities of financial liabilities:

The table below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

C Credit Risk

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. The Company’s exposure to credit risk is limited to the carrying amount of financial assets recognised at the date of the balance sheet, as summarised in the table below.The Company periodically assesses the financial reliability of the counter party taking into account the financial condition, current economic trends, analysis of historical bad debts and ageing of accounts receivable. Individual customer limits are set accordingly.

Credit risk on cash and cash equivalents is limited as they are generally invested in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies. Advances to Related Parties are for business purposes and the Company assesses the credit risk on the these advances on a regular basis and does not forsee any event of default.

Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has always been managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company is exposed to credit risk in the event of non-payment by customers. Credit risk concentration with respect to trade receivables is mitigated by the Company’s large customer base.Adequate expected credit losses are recognized as per the assessments and as such has provided for a expected credit loss of Rs.165.50 lakhs.( 31 March 2023: 146.20 lakhs)

61 Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions, annual operating plans and long term and other strategic investment plans. In order to maintain or adjust its capital structure, the Company may adjust the amount of dividends paid, return the capital to shareholders, issue new shares or adjust its short term borrowings. The current capital structure of the Company is equity based backed with borrowings.

62 Recoverability from Subsidiary Companies

The Company has an outstanding recoverability of Rs.916.00 lakhs and Rs.153.02 lakhs from it subsidiaries Lifezen Healthcare Private Limited and Balance Clinic LLP respectively. The said subsidiaries have incurred losses and have a negative net worth. However the management is confident that with infusion of additional funds, introduction of new brands and renewed marketing, the companies can be revived and the amounts recovered.

63 Merger with its wholly owned subsidiary

The Company has filed application with NCLT for merger of Golden Drugs Pvt Ltd , a wholly owned subsidiary of the Company.

65. Other Accounting Policies Information

a) Intangible Asset

Recognition and Measurement

The items of intangible assets, with finite life, are measured at cost less accumulated amortisation and impairment losses, if any. Cost of an item of intangible assets comprises its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, any cost directly attributable to bringing the asset to its working condition for its intended use.

Subsequent expenditure

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates.All other expenditure on internally generated goodwill and brands, is recognised in profit or loss when incurred.

Research and Development

Expenditure on research activities undertaken with the prospect of gaining new scientific or technical knowledge and understanding are recognised as an expense when incurred. Development activities involve a plan or design for the production of new or substantially improved products and processes. An internally-generated intangible asset arising from development is recognised if following have been demonstrated by the Company.

- development costs can be measured reliably;

- the product or process is technically and commercially feasible

- future economic benefits are probable; and

- the Company intends to and has sufficient resources to complete development and to use or sell the asset.

As such, expenditure on projects which have become unsuccessful are charged off as an expense in the year in which they are abandoned. Capital expenditure incurred on research and development is capitalized as Property, Plant and Equipment and depreciated in accordance with the depreciation policy of the company.

Disposal/Write-off

An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in profit or loss when the asset is derecognized.

Amortisation

Amortisation is calculated to write-off the cost of intangible assets less their estimated residual values over their estimated useful lives using the straight-line method, and is included in depreciation and amortisation in the statement of profit and loss.The estimated useful life of intangibles are as follows:

The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. b) Impairment

i. Impairment of financial instruments

The Company recognises loss allowances for expected credit losses on:

- financial assets measured at amortised cost; and

- financial assets measured at FVOCI- debt investments.

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

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

- significant financial difficulty of the borrower or issuer;

- a breach of contract such as a default or being past due for 180 days or more;

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

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

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

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

- debt securities that are determined to have low credit risk at the reporting date; and

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

Loss allowances for trade receivables are always measured at an amount equal to lifetime expected credit losses. Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument.12-month expected credit losses are the portion of expected credit losses that result from default events that are possible within 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

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

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit losses, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort.This includes both quantitative and qualitative information and analysis, based on the Company's historical experience and informed credit assessment and including forward-looking information.

The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 180 days past due.

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

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

- the financial asset is 180 days or more past due.

A. Measurement of expected credit losses

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

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates.At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed."

B. Presentation of allowance for expected credit losses in the balance sheet

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

C.Write-off

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

ii. Impairment of non-financial assets

The Company's non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated.

For impairment testing, assets that do not generate independent cash inflows are grouped together into cash-generating units (CGUs). Each CGU represents the smallest group of assets that generates cash inflows that are largely independent of the cash inflows of other assets or CGUs.

The recoverable amount of a CGU (or an individual asset) is the higher of its value in use and its fair value less costs to sell.Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the CGU (or the asset).

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

An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its estimated recoverable amount. Impairment losses are recognised in the Statement of profit and loss. Impairment loss recognised in respect of a CGU is allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets of the CGU (or group of CGUs) on a pro rata basis.

In respect of other assets for which impairment loss has been recognised in prior periods, the Company reviews at each reporting date whether there is any indication that the loss has decreased or no longer exists.An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. Such a reversal is made only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

c) Financial Instruments

i. Recognition and initial measurement

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

A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue.

ii. Classification and subsequent measurement

A. Financial assets

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

- amortised cost

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

- Fair value through other comprehensive income (FVOCI) - equity investment; or

- Fair value through profit & loss- (FVTPL)

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

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

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

- 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.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

- the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and Interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment's fair value in OCI (designated as FVOCI - equity investment).This election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL.This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

B. Financial assets: Business model assessment

The Company makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management.The information considered includes:

- the stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether management's strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realising cash flows through the sale of the assets;

- how the performance of the portfolio is evaluated and reported to the Company's management;

- the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed;

- how managers of the business are compensated - e.g. whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and

- the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, consistent with the Company's continuing recognition of the assets.

Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL.

C. Financial assets:Assessment whether contractual cash flows are solely payments of principal and interest.

For the purposes of this assessment, ‘principal' is defined as the fair value of the financial asset on initial recognition. ‘Interest' is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Company considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Company considers:

- contingent events that would change the amount or timing of cash flows;

- terms that may adjust the contractual coupon rate, including variable interest rate features;

- prepayment and extension features; and

- terms that limit the Company's claim to cash flows from specified assets (e.g. non-recourse features).

A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment amount substantially represents unpaid amounts of principal and interest on the principal amount outstanding, which may include reasonable additional compensation for early termination of the contract. Additionally, for a financial asset acquired at a significant discount or premium to its contractual par amount, a feature that permits or requires prepayment at an amount that substantially represents the contractual par amount plus accrued (but unpaid) contractual interest (which may also include reasonable additional compensation for early termination) is treated as consistent with this criterion if the fair value of the prepayment feature is insignificant at initial recognition.

D. Financial assets: Subsequent measurement and gains and losses

Financial assets at FVTPL These assets are subsequently measured at fair value. Net gains and losses, including any interest or

dividend income, are recognised in profit or loss.

Financial assets at amortised cost These assets are subsequently measured at amortised cost using the effective interest method. The

amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.

D.1 Financial assets: Subsequent measurement and gains and losses

Debt investments at FVOCI These assets are subsequently measured at fair value. Interest income under the effective interest

method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.

Equity investments at FVOCI These assets are subsequently measured at fair value. Dividends are recognised as income in profit or

loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are not reclassified to profit or loss.

E. Financial liabilities: Classification, subsequent measurement and gains and losses

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.

iii. Derecognition

A. Financial assets

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

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

B. Financial liabilities

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

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

iv. Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

d) Foreign CurrencyTransactions:

"Initial recognition:

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction."

"Measurement of foreign currency monetary items at the Balance Sheet date:

Foreign currency monetary items (other than derivative contracts) of the Company and its net investment in non-integral foreign operations outstanding at the Balance Sheet date are restated at the year-end rates."

"Treatment of exchange differences:

Exchange differences arising on settlement / restatement of short-term foreign currency monetary assets and liabilities of the Company are recognized as income or expense in the Statement of Profit and Loss.

e) Employee Benefits

a) ShortTerm Employee Benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are recorded as expense as the related service is provided. Benefits such as salaries, short term compensated absences etc., and the expected cost of bonus is recognized in the period in which the employee renders the related services.A liability is recognized for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for the related service

b) Post-Employment Benefits

The Company participates in various employee benefit plans. Pensions and other post-employment benefits are classified as either defined contribution plans or defined benefit plans. Under a defined contribution plan, the Company's only obligation is to pay a fixed amount with no obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits.The related actuarial and investment risks are borne by the employee. The expenditure for defined contribution plans is recognised as an expense during the period when the employee provides service. Under a defined benefit plan, it is the Company's obligation to provide agreed benefits to the employees. The related actuarial and investment risks are borne by the Company. The present value of the defined benefit obligations is calculated by an independent actuary using the projected unit credit method.

Defined contribution plans

Employees receive benefits from a provident fund and employee state insurance funds. The employer and employees each make periodic contributions to the plan as per local regulations. The Company has no further payment obligations once the contributions have been paid.The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expenses in the Statement of Profit and Loss as they fall due based on the amount of contribution required to be made.

Defined Benefit plans

In accordance with the Payment of Gratuity Act, 1972, applicable for Indian companies, the Company provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment with the Company. Company's liability towards Gratuity are actuarially determined at each balance sheet date using the projected unit credit method. Actuarial gains and losses are recognized in the Statement of Profit and Loss in the period of occurrence.

Other LongTerm Benefit plan

Actuarial Valuation for compensated absences is done as at the year end and the provision is made as per Company policy with corresponding (gain)/charge to the statement of profit and loss and it covers all regular employees. Obligation in respect of earned leave policy are actuarially determined as at the year end using the ‘Projected Unit Credit' method.

f) Borrowing Cost

Borrowing costs consists of interest, ancillary costs and other costs in connection with the borrowing of funds and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to interest costs.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets up to the assets are substantially ready for their intended use or sale.

The loan origination costs directly attributable to the acquisition of borrowings (e.g. loan processing fee, upfront fee) are amortised on the basis of the Effective Interest Rate (EIR) method over the term of the loan.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.All other borrowing costs are recognised in the statement of profit and loss in the period in which they are incurred.

g) Leases

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 of consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether

a. the Contract involves the use of an identified asset

b. the Company has substantially all of the economic benefits from use of the asset through the period of lease

c. the Company has the right to direct the use of asset

The Company determines the lease term as the noncancellable period of a lease, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics

g) Leases (continued)

Leases as Lessor

Leases for which the Company is a lessor is classified as a finance or operating lease.When ever 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. The Company recognises lease payments received under operating leases as income on a straight-line basis over the lease term. In case of a finance lease, finance income is recognised over the lease term based on a pattern reflecting a constant periodic rate of return on the lessor's net investment in the lease. When the Company is an intermediate lessor it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease

Leases as Lessee

As at the date of commencement of the lease, the Company recognises a right of use asset("ROU") and a corresponding lease liability for all lease arrangements in which it is a lessee, except for the leases with a term of twelve month or less (short term leases) and low value leases. For these short term leases, the Company recognises the lease payments as an operating expense on a straight line basis over the period of 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. ROU 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 and related prepaid amount plus any initial direct costs less any lease incentives.They are subsequently measured at cost less accumulated depreciation and impairment losses

ROU 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. ROU 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. ROU 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 market . Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option.

The Right-of-Use asset has been disclosed within the same line item as that within which the corresponding underlying asset would be presented. Where the Right-of-Use asset meets the definition of Investment Property such items has been presented in Balance sheet as Investment Property. Lease liability have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows"

h) Earnings per Share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date.The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.

i) IncomeTax

a. CurrentTax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax' as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible.The Company's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

b. Minimum AlternateTax (‘MAT’)

Minimum Alternate Tax (‘MAT') under the provisions of the Income-tax Act, 1961 is recognised as current tax in the Statement of Profit and Loss. The credit available under the Income-tax Act, 1961 in respect of MAT paid is recognised 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. MAT credit recognised as an asset is reviewed at each Balance Sheet date and written down to the extent the aforesaid convincing evidence no longer exists.

c. DeferredTax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the standalone financial

statements and corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities not recognised if the temporary differences arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit not the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interest are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is 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 all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

j) Provisions and Contingencies

a. Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, itis probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability.When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

b. Contingent Liabilities and Contingent Assets

A contingent liability is a possible obligation that arises from a past event, with the resolution of the contingency dependent on uncertain future events, or a present obligation where no outflow is probable. Major contingent liabilities are disclosed in the financial statements unless the possibility of an outflow of economic resources is remote. Contingent assets are not recognized in the standalone financial statements but disclosed, where an inflow of economic benefit is probable.

k) Cash and cash equivalents

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

l) Statement of cash flows

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments.The cash flows from operating, investing and financing activities of the Company are segregated.

66 Additional Regulatory Information

(i) The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed under Property, Plant and Equipment in the financial statements are held in the name of the Company.

(ii) There are no proceedings that have been initiated or pending against the Company for holding any any benami property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the Rules made thereunder.

(iii) The Company has not been declared as a wilful defaulter by any bank or financial institution or any other lender

(iv) The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

(v) The details of charges and satisfaction of charges have been registered with Registrar of Companies within the statutory period

(vi) Utilisation of Borrowed Funds and Share premium

(A) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

(B) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) The Company declares that the Relevant Provisions of the FEMA Act ,1999 and Companies Act have been Complied with and are not in violation of the Prevention of Money-Laundering Act ,2002.

(viii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income TaxAct, 1961

(ix) The Company has not traded or invested in Crypto currency orVirtual Currency during the financial year.