(i) Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.

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

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

Contingent assets are not recognised in the financial statements.

Contingent assets are disclosed when there is a possible inflow of economic benefits resulting from past events,
the realization of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain

future events not wholly within the control of the company. Alternatively, a contingent asset arises from past
events where it is either not probable that an inflow of economic benefits will occur or a reliable estimate of the
amount cannot be made.

(j) Employee Benefits:

Short Term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services
rendered by employees are recognised as an expense during the period when the employees render the
services.

Post-Employment Benefits

Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified
contributions to a separate entity. The Company makes specified monthly contributions towards Provident
Fund, Superannuation Fund and Pension Scheme. The Company's contribution is recognised as an expense in
the Profit and Loss Statement during the period in which the employee renders the related service.

Defined Benefit Plans

The liability in respect of defined benefit plans and other post-employment benefits is calculated using the
Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived
from employees' services.

Actuarial gains and losses in respect of post-employment and other long term benefits are charged to the Other
Comprehensive Income.

Employee Separation Costs

Compensation to employees who have opted for retirement under the voluntary retirement scheme of the
Company is charged to the Profit and Loss Statement in the year of exercise of option by the employee.

(k) Taxation:

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to
the extent that it relates to items recognised in the comprehensive income or in equity. In this case, the tax is
also recognised in other comprehensive income and equity.

Current Tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet
date.

Deferred Tax

Deferred tax is recognised 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.

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 realised, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and
assets are reviewed at the end of each reporting period.

(l) Cash and Cash Equivalents:

Cash and cash equivalents includes cash in hand and deposits with any qualifying financial institution repayable
on demand or maturing within three months of the date of acquisition and which are subject to an insignificant
risk of change in value.

(m) Foreign Currencies:

Company's financial statements are presented in INR, which is also its functional currency.

Transactions and Ba1ances:

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot
rates of exchange at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognised in profit or loss
except to the extent that exchange differences which are regarded as an adjustment to interest costs on foreign
currency borrowings are capitalized as cost of assets under construction. Additionally, exchange gains or losses
on foreign currency borrowings taken prior to April 1, 2016 which are related to the acquisition or construction
of fixed assets are adjusted in the carrying cost of such assets.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss
arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the
gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or
loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).

(n) Revenue Recognition:

Revenue from contract with customer is recognised upon transfer of control of promised products or services to
customers on complete satisfaction of performance obligations for an amount that reflects the consideration
which the Company expects to receive in exchange for those products or services. Revenue is measured based
on the transaction price, which is the consideration, adjusted for discounts and other incentives, if any, as per
contracts with the customers. Revenue also excludes taxes or amounts collected from customers in its capacity
as agent.

Contract Liability

A contract liability is the obligation to transfer goods or services to a customer for which the Company has
received consideration (or an amount of consideration is due) from the customer. Contract liabilities are
recognised as revenue when the Company performs under the contract. The same is disclosed under Other
Current Liabilities.

(o) Interest Income:

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to
the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by
reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly

discounts estimated future cash receipts through the expected life of the financial asset to that asset's net
carrying amount on initial recognition.

(p) Financial Instruments:

Initial recognition

The company recognizes financial assets and financial liabilities when it becomes a party to the contractual
provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition,
except for trade receivables which are initially measured at transaction price. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value
through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of
financial assets are recognised using trade date accounting.

Subsequent measurement

Non-Derivative Financial Instruments

(i) Financial assets carried at amortised cost (AC) :

A financial asset is subsequently measured at amortised cost if it is held within a business model whose
objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.

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

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within
a business model whose objective is achieved by both collecting contractual cash flows and selling financial
assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding

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

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

Mutual funds - All mutual funds in scope of Ind-AS 109 are measured at fair value through profit and loss
(FVTPL).

Equity Instruments

All equity investments in scope of Ind-AS 109 are measured at fair value either as at FVTOCI or FVTPL. The
company makes such election on instrument-by-instrument basis.

For equity instruments measured as at FVTOCI, all fair value changes on the instrument, excluding dividends,
are recognized in the OCI. Equity instruments included within the FVTPL category are measured at fair value
with all changes recognized in the P&L.

Impairment of Financial Assets

The company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on
the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities,
deposits, trade receivables and bank balance

b) Financial assets that are debt instruments and are measured as at FVTOCI

c) Lease receivables

d) Trade receivables or any contractual right to receive cash or another financial asset

e) Loan commitments which are not measured as at FVTPL

f) Financial guarantee contracts which are not measured as at FVTPL

The company follows 'simplified approach' for recognition of impairment loss allowance on:

• Trade receivables or contract revenue receivables; and

• All lease receivables

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it
recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial
recognition.

Financial Liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and
other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair
value due to the short maturity of these instruments.

De-Recognition of Financial Instruments

The company derecognizes a financial asset when the contractual rights to the cash flows from the financial
asset expire or it transfers the financial asset and the transfer qualifies for de-recognition under Ind AS 109. A
financial liability (or a part of a financial liability) is derecognized from the company's balance sheet when the
obligation specified in the contract is discharged or cancelled or expires.

Fair Value of Financial Instruments

In determining the fair value of its financial instruments, the company uses a variety of methods and
assumptions that are based on market conditions and risks existing at each reporting date. The methods used to
determine fair value include discounted cash flow analysis, available quoted market prices. All methods of
assessing fair value result in general approximation of value and such value may vary from actual realization on
future date.

(q) Financial Risk Management:

The Company's principal financial assets include loans and advances, trade and other receivables, and cash and
cash equivalents that are generated from its operations.

This note presents information regarding the company's exposure, objectives, policies and processes for
measuring and managing these risks

The Company's activities expose it to the following financial risks, namely:

Credit risk

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To
manage this, the Company periodically assesses the financial reliability of customers, taking into account the
financial condition, current economic trends, and analysis of historical bad debts and ageing of account
receivables. Individual risk limits are also set accordingly. The Company considers the probability of default
upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing
basis throughout each reporting period. To assess whether there is a significant increase in credit risk, the
Company compares the risk of default occurring on the asset as at the reporting date with the risk of default as
at the date of initial recognition. The Company considers reasonable and supportive forward-looking
information.

Liquidity risk

Liquidity risk is defined as the risk that the Group will not be able to settle or meet its obligations on time or at a
reasonable price. The lower management is responsible for maintenance of liquidity, continuity of funding as
well as timely settlement of debts. In addition, policies related to mitigation of risks are overseen by senior
management. Management monitors the Company's net liquidity position on the basis of expected cash flows
vis-a-vis debt service fulfilment obligation.

Market risk

Market risk is the risk of loss of future earnings, fair value or future cash flows arising out of change in the price
of a financial instrument. These include change as a result of changes in the interest rates, foreign currency
exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market
risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign
currency receivables, payables and loans and borrowings.

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION
UNCERTAINITY

Accounting Policies, Changes in Accounting Estimates and Errors:

The amendments will help entities to distinguish between accounting policies and accounting estimates. The
definition of a change in accounting estimates has been replaced with a definition of accounting estimates.
Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject
to measurement uncertainty”. Entities develop accounting estimates if accounting policies require items in
financial statements to be measured in a way that involves measurement uncertainty. The Company does not
expect this amendment to have any significant impact in its financial statements.

When preparing the financial statements, management undertakes a number of judgements, estimates and
assumptions about the recognition and measurement of assets, liabilities, income and expenses.

• Recognition of deferred tax assets - The extent to which deferred tax assets can be recognized is based
on an assessment of the probability of the Company's future taxable income against which the deferred tax
assets can be utilized.

• Evaluation of indicators for impairment of assets - The evaluation of applicability of indicators of
impairment of assets requires assessment of several external and internal factors which could result in
deterioration of recoverable amount of the assets.

• Recoverability of advances/receivables - At each balance sheet date, based on discussions with the
respective counter-parties and internal assessment of their credit worthiness, the management assesses
the recoverability of outstanding receivables and advances. Such assessment requires significant
management judgement based on financial position of the counter-parties, market information and other
relevant factors.

• Defined benefit obligation (DBO) - Management's estimate of the DBO is based on a number of critical
underlying assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate
and anticipation of future salary increases. Variation in these assumptions may significantly impact the
DBO amount and the annual defined benefit expenses.

• Fair value measurements - Management applies valuation techniques to determine the fair value of
financial instruments (where active market quotes are not available) and non-financial assets. This
involves developing estimates and assumptions consistent with how market participants would price the
instrument. Management bases its assumptions on observable data as far as possible but this is not always
available. In that case management uses the best information available. Estimated fair values may vary
from the actual prices that would be achieved in an arm's length transaction at the reporting date.