2. 15. Provisions

Provisions are recognized 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. When the Company
expects some or all of a provision to be reim¬
bursed, for example, under an insurance con¬
tract, the reimbursement is recognized as a
separate asset, but only when the reimburse¬
ment is virtually certain. The expense relating
toa 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 recognized as a finance cost.

2.16. Retirement and other employee benefits

Defined Contribution plan

Retirement benefit in the form of Provident
Fund is defined contribution scheme. The Com¬
pany has no obligation, other than the contribu¬
tion payable to the abovementioned funds. The
Company recognizes contribution payable to the
provident fund scheme as an expense, when an
employee renders the related service. If the
contribution payable to the scheme for service
received before the balance sheet date exceeds
the contribution already paid, the deficit paya¬
ble to the scheme is recognized as a liability
after deducting the contribution already paid. If
the contribution already paid exceeds the con¬
tribution due for services received before the
balance sheet date, then excess is recognized
as an asset to the extent that the pre-payment
will lead to, for example, a reduction in future
payment or a cash refund.

Defined benefit plan

The Company has a defined benefit gratuity
plan, which requires contribution to be made to
a separately administered fund. The Company's
liability towards this benefit is determined on

the basis of actuarial valuation using Projected
Unit Credit Method at the date of balance
sheet.

Remeasurement, comprising of actuarial gains
and losses, the effect of the asset ceiling, ex¬
cluding amounts included in net interest on the
net defined benefit liability and the return on
plan assets (excluding amounts included in net
interest on the net defined benefit liability), are
recognized immediately in the balance sheet
with a corresponding debit or credit to retained
earnings through OCI in the period in which
they occur. Remeasurement is not reclassified
to statement of profit and loss in subsequent
periods.

Past service costs are recognized in statement
of profit and loss on the earlier of:

• The date of the plan amendment or curtail¬
ment and

• The date that the Company recognizes related
restructuring costs

Net interest is calculated by applying the dis¬
count rate to the net defined benefit liability or
asset. The Company recognizes the following
changes in the net defined benefit obligation as
an expense in statement of profit and loss:

• Service costs comprising current service
costs, past service costs, gains and losses on
curtailments and non - routine settlements; and

• Net interest expense or income
Compensated absences

Accumulated leave, which is expected to be
utilized within the next 12 months, is treated as
short-term employee benefit and this is shown
under short term provision in the Balance
Sheet. The Company measures the expected
cost of such absences as the additional amount
that it expects to pay as a result of the unused
entitlement that has accumulated at the report¬
ing date.

The Company treats accumulated leave ex¬
pected to be carried forward beyond twelve
months, as long-term employee benefit for
measurement purposes and this is shown under
long term provisions in the Balance Sheet.
Such long-term compensated absences are pro¬
vided for based on the actuarial valuation using
the projected unit credit method at the year-
end. Actuarial gains/losses are immediately
taken to the Statement of Other Comprehensive
Income and are not deferred. The Company
presents the leave as a current liability in the
balance sheet; to the extent it does not have
an unconditional right to defer its settlement
for 1 2-month sifter the reporting dates. Where
the Company has the unconditional legal and
contractual right to defer the settlement for a
period beyond 12 months, the same is present¬
ed as non-current liability.

Termination benefits

The Company recognizes termination bene¬
fit as a liability and an expense when the
Company has a present obligation as a re¬
sult of past event, it is probable that an out¬
flow of resources embodying economic ben¬
efits will be required to settle the obligation
and a reliable estimate can be made of the
amount of the obligation. If the termination
benefit falls due for more than 12 - month
sifter the balance sheet date, they are
measured at present value of the future
cash flows using the discount rate deter¬
mined by reference to market yields at the
balance sheet date on the government
bonds.

2.17 Cash and cash equivalents

Cash and cash equivalent in the balance
sheet comprise cash at banks and on hand
and short-term deposits within original ma¬
turity of three months or less, which are
subject to an insignificant risk of changes in
va l u e .

For the purpose of the statement of cash
flows, cash and cash equivalents consist of
cash and short-term deposits, as defined
above, net of outstanding bank overdrafts
as they are considered an integral part of
the Company's cash management.

2.18. Other Financial Assets:

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

(1) Those to be measured subsequently at
fair value (either through other comprehen¬
sive income, or through the Statement of
Profit and Loss), and

(2) Those measured at amortized cost.

The classification depends on the Compa¬
ny's business model for managing the finan¬
cial assets and the contractual terms of the
cash flows.

At initial recognition, the Company
measures a financial asset at its fair value.
Transaction costs of financial assets carried
at fair value through the Profit and Loss are
expensed in the Statement of Profit and
Loss.

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

2.19 Foreign currencies

The Company's financial statements are pre¬
sented in which is also the Company's function¬
al currency. Transactions in foreign currencies
are initially recorded by the Company at ' spot
rate' at the date the transaction first qualifies
for recognition. Monetary assets and liabilities
denominated in foreign currencies are translated
at the functional currency spot rates of ex¬
change at the reporting date.

Exchange differences arising on settlement or
translation of monetary items are recognized in
statement of profit and loss.

Non - monetary items that are measured in terms
of historical cost in a foreign currency are trans¬
lated using the exchange rates at the rates of
the initial transactions. On - monetary items
measured at fair value in a foreign currency are
translated using the exchange rates at the rate
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 recognized in OCI or statement of profit
and loss are also recognized in OCI or state¬
ment of profit and loss, respectively).

2.20. Earnings per Share

Basic Earnings per share (EPS) amounts are
calculated by dividing the profit for the year at¬
tributable to equity holders of the company by
the weighted average number of equity shares
outstanding during the year.

Diluted EPS amounts are calculated by dividing
the profit attributable to equity holders of the
company after adjusting impact of dilution
shares by the weighted average number of equi¬
ty shares outstanding during the year plus the
weighted average number of equity shares that
would be issued on conversion of all the dilutive
potential equity shares into equity shares.

2.21. Contingent liabilities and assets

A contingent liability is a possible obligation
that arises from past events whose existence
will be confirmed by the occurrence or non —
occurrence of one or more uncertain future
events not wholly within the control of the Com¬
pany or a present obligation that is not recog¬
nized because it is not probable that an outflow
of resources will be required to settle the obli¬
gation. A contingent liability also arises in ex¬
tremely rare cases where there is a liability that
cannot be recognized because it cannot be
measured reliably. The Company does not rec¬
ognize a contingent liability but discloses its
existence in the financial statements.

A contingent asset is not recognized unless
it becomes virtually certain that an inflow of
economic benefits will arise. When an inflow
of economic benefits is probable, contingent
assets are disclosed in the financial state¬
ments. Contingent liabilities and contingent
assets are reviewed at each balance sheet
date.

2.22 Significant accounting judgments,
estimates and assumptions

The preparation of the financial statements
requires management to make judgments,
estimates and assumptions that affect the
reported amounts of revenues, expenses,
assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent
liabilities. Uncertainty about these assump¬
tions and estimates could result in outcomes
that require an adjustment to the carrying
amount of assets or liabilities in future peri¬
ods. Difference between actual results and
estimates are recognized in the periods in
which the results are known / materialized.

Estimates and assumptions

The key assumptions concerning the future
and other key sources of estimation uncer¬
tainty at the reporting date, that have a sig¬
nificant risk of causing a material adjustment
to the carrying amounts of assets and liabili¬
ties within the next financial year, are de¬
scribed below. The Company has based its
assumptions and estimates on parameters
available when the financial statements were
prepared. Existing circumstances and as¬
sumptions about future developments, how¬
ever, may change due to market changes or
circumstances arising that are beyond the
control of the Company. Such changes are
reflected in the assumptions when they oc¬
cur.

Information about the critical judgment in
applying accounting policies, as well as esti¬
mated and assumption that have not most
that have the most significant effect to the
carrying amount of assets and liabilities
which the net financial year, are included in
the following notes:

a) Measurement of defined benefits obli¬
gations - note no. 19

b) Measurement and likelihood of occur¬
rence of provision note no. 24

c) Recognition of current tax and de¬
ferred tax assets note no.7

d) Key assumption uses in fair valuation
note no. 37

e) Measurement of lease liabilities and
right - of-assets note no. 5

f) Estimation of uncertainties relating to
the global health pandemic for COVID -
1 9 note no. 52

2.23 non - current assets (or disposal
groups) classified as held for sale:

To classify any asset or disposal groups
(comprising assets and liabilities) as
“Asset / Disposal groups held for sale” they
must be available for immediate sale and its
sale must be highly probable. Such assets or
group of assets / liabilities are presented
separately in the Balance Sheet, in the line
“Assets / Disposal groups held for sale” and
“Liabilities included in disposal group held
for sale” respectively. Once classified as
held for sale, intangible assets and PPE are
no longer amortized or depreciated. Such
assets or disposal groups held for sale are
stated at the lower of carrying amount and
fair value less costs to sell.

2.24 Amendment to schedule III Compa¬
nies Act, 2013

Ministry of Corporate Affairs (MCA) issued
notifications dated March 24,2021 to amend
schedule III of the Companies Act, 2013 to
enhance the disclosures required to be made
by the Company in its financial statements.
These amendments are applicable to the
Company for the financial year starting
April1,2021 and applied to the standalone
financial statements:

a) Lease liabilities separately disclosed
under the head financial liabilities, du¬
ly distinguished as current or non¬
current.

b) Certain additional disclosures in the
standalone statements of change in
equity such as change in equity share
capital due to prior period error and
restated balances at the beginning of
the current reporting period.

c) Additional disclosure for shareholding
or promoters and promoters' group.

d) Additional disclosure for ageing sched¬
ule of trade receivable and trade paya¬
ble.

e) Specific disclosure on compliance with
approved scheme of arrangement.

f) Additional disclosure relating to Corpo¬
rate Social Responsibility (CSR) and
undisclosed income.