NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

1. General information

Advait Energy Transition Limited (formerly known as
Advait Infratech Limited) (“the Company"), incorporated
in the year 2009, is one of the well-established companies
in India operating in the manufacturing and supply of
power transmission products such as Stringing Tools,
OPGW (Optical Fibre Ground Wire), OFC (Optical Fibre
Cables), ACS (Aluminium Clad Steel Wire), ERS (Emergency
Restoration System), RDSS (Revamped Distribution Sector
Scheme), Re-conductoring and HTLS (High Temperature
Low Sag) conductors, and OPGW joint boxes. The Company
is also engaged in new and renewable energy businesses,
including Carbon Credit trading and, Green Hydrogen,
and Solar EPC.

The Company is a public limited company incorporated and
domiciled in India, having its Corporate Identity Number
(CIN) as L45201GJ2010PLC059878. The registered office
of the Company is situated at KIFS Corporate House, 1^st &
2^nd Floor, Iscon Ambli Road, Beside Hotel Planet Landmark,
Near Ashok Vatika, Ambli, Ahmedabad - 380058.

The equity shares of the Company are listed on BSE
Limited, and during the year, the Company also got its
equity shares listed on the National Stock Exchange of
India Limited.

2. Basis of preparation of financial statements

The standalone financial statements of the company have
been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under section 133 of the
companies Act, 2013 read with the Companies (Indian
Accounting Standards) Rules , 2015 (as amended from
time to time).

These Standalone Ind AS Financial statements are
presented in Indian Rupees (INR), which is company
presentation currency. All amounts have been rounded
off to the nearest lacs, unless otherwise stated.

These financial statements were approved for issue by the
Company''s Board of Directors on May 27, 2026.

The financial statements have been prepared on a going
concern basis using historical cost convention basis
except for the following items:

• certain financial assets and liabilities (including mutual
fund investments and derivatives) that are measured
at fair value;

• defined benefit plans - plan assets measured at fair
value; and

• share-based payments.

Recent accounting pronouncements

New and amended Ind ASs effective from April 01, 2025

The Ministry of Corporate Affairs (MCA) notifies new standards
| amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time.
During the year, the MCA has amended the Ind AS as below:

Ind AS 1 - Presentation of Financial Statements:

The amendments clarify requirements relating to classification
of liabilities as current or non-current, including the effect
of covenants and the Company''s right to defer settlement.
The amendments also introduce specific disclosure
requirements where liabilities arising from loan arrangements
are classified as non-current and the Company''s right to defer
settlement is subject to compliance with covenants within
twelve months after the reporting period.

Ind AS 7 - Statement of Cash Flows and Ind AS 107 - Financial
Instruments:

Disclosures:

The amendments introduce disclosure requirements in respect
of supplier finance arrangements, including information about
the terms and conditions, carrying amounts of related financial
liabilities, amounts for which suppliers have received payment
from finance providers, ranges of payment due dates and the
effect of non-cash changes. Supplier finance arrangements are
also relevant to the Company''s liquidity-risk disclosures.

Ind AS 12 - Income Taxes:

The amendments relating to International Tax Reform - Pillar
Two Model Rules introduce a mandatory temporary exception
from recognising and disclosing deferred tax assets and
liabilities related to Pillar Two income taxes and introduce
additional disclosures relating to Pillar Two income taxes, where
applicable.

Ind AS 21 - The Effects of Changes in Foreign Exchange Rates:
The amendments provide guidance for assessing whether
a currency is exchangeable into another currency and for
estimating the spot exchange rate where exchangeability
is lacking. Additional disclosures are required in such
circumstances.

The Company has evaluated the applicability of the above
amendments. Based on the nature of the Company''s
transactions, arrangements and operations, the amendments
did not have a material impact on recognition and measurement.
The Company has incorporated the additional disclosures
required by the applicable amendments.

3. Key estimates and assumptions

The preparation of financial statements in accordance
with Ind AS requires use of estimates and assumptions,
which might have an effect on their recognition and
measurement in the (i) balance sheet and (ii) statement
of profit and loss. The actual amounts may differ from

these estimates.

Estimates and assumptions are required in particular for:

• Determination of the estimated useful lives of
tangible assets and intangible assets

Useful lives of assets are based on the life prescribed
in Schedule II of the Companies Act, 2013. In cases,
where the useful lives are different from that
prescribed in Schedule II, they are based on technical
advice, taking into account the nature of the asset,
the estimated usage of the asset, the operating
conditions of the asset, past history of replacement,
anticipated technological changes, manufacturers''
warranties and maintenance support.

• Recognition and measurement of defined benefit
obligations

The obligation arising from defined benefit plan is
determined on the basis of actuarial assumptions.
Key actuarial assumptions include discount rate,
trends in salary escalation, actuarial rates and
life expectancy. The discount rate is determined
by reference to market yields at the end of the
reporting period on government bonds. The period
to maturity of the underlying bonds corresponds
to the probable maturity of the post-employment
benefit obligations.

• Recognition of deferred tax assets

Deferred tax assets and liabilities are recognized
for the future tax consequences of temporary
differences between the carrying values of assets
and liabilities and their respective tax bases,
and unutilized business loss and unabsorbed
depreciation and tax credits. Deferred tax assets
are recognized to the extent that it is probable that
future taxable income will be available against which
the deductible temporary differences, unused tax
losses, unabsorbed depreciation and unused tax
credits could be utilized.

• Recognition and measurement of other
provisions

The recognition and measurement of other
provisions are based on the assessment of the
probability of an outflow of resources, and on past
experience and circumstances known at the balance
sheet date. The actual outflow of resources at a future
date may therefore vary from the amount included
in other provisions.

• Fair value of financial instruments

Investments in mutual funds and equity instrument
are carried at fair value.

4. Measurement of fair values

The Company''s accounting policies and disclosures
require the measurement of fair values for financial
instruments. The Company has an established control
framework with respect to the measurement of fair values.
The management regularly reviews significant observable
inputs and valuation adjustments.

5. Significant accounting policies followed by
the company

A. Foreign currency

Items included in the financial statements of the
Company ore measured using the currency of
the primary economic environment in which the
Company operates (functional currency). For each
foreign operation outside India, the Company
determines the functional currency and items
included in the financial statements of each foreign
operation are measured using that functional
currency of that respective foreign operation.
The functional and presentation currency of the
Company is Indian Rupees (INR). The financial
statements ore presented in Indian rupees (INR).

Accounting for transactions and balances in
foreign currencies

Foreign currency transactions are recorded in the
functional currency using the exchange rates at the
dates of the transactions. Foreign exchange gain
and losses resulting from the settlement of such
transactions and from translation of monetary assets
and liabilities denominated in foreign currency at the
year-end exchange rate are generally recognised in
profit or loss except for transactions entered into in
order to hedge.

Non-monetary items carried at fair value that are
denominated in foreign currencies are retranslated
at the rates prevailing at the date when the fair
value was determined. Non-monetary items that
are measured in terms of historical cost in foreign
currencies are not retranslated at year end.

Translation of foreign operations whose functional
currency is other than presentation currency

The results and financial position of foreign
operations that have a functional currency different
from the presentation currency are translated in to
presentation currency as follows:

• assets and liabilities, both monetary and non
monetary are translated at the rates prevailing at
the end of each reporting period

• Income and expense items are translated at the
exchange rates at the dates of the transactions

• resulting exchange differences ore accumulated in
the exchange differences on translation of foreign
operations in the statement of changes in equity.

On the disposal of a foreign operation all of the exchange
differences accumulated in other comprehensive income
relating to that particular foreign operation attributable to
the owners of the Company is reclassified in the statement
of profit and loss

B. Revenue Recognition

i) Revenue from contract with customers for sale of

goods and provision of services

The Company recognizes revenue from contracts
with the customers based on five step model defined
in Ind AS 115. The Company satisfies a performance
obligation and recognizes revenue over time, if any
of the conditions given in Ind AS 115 are satisfied;
else revenue is recognized at point in time at which
the performance obligation is satisfied. When the
Company satisfies a performance obligation by
delivering the promised goods or services it creates a
contract-based asset on the amount of consideration
earned by the performance. Where the amount of
consideration received from a customer exceeds the
amount of revenue recognized, this gives rise to a
contract liability.

Revenue is measured at the fair value of the
consideration received or receivable, net of returns
and allowances, trade discounts and volume
rebates. Revenues are recognized to the extent it is
probable that the economic benefits will flow to the
Company and the revenue & costs, if applicable, can
be measured reliably.

a. Performance Obligation

The Company derives its revenue from selling
products and services in Power Transmission
Stringing Tools, OPGW (Optical Fibre Ground Wire),
OFC cables, ACS (Aluminium Clad Steel Wire),
ERS (Emergency Restoration System), RDSS, HTLS
Re-conductor and OPGW joint boxes etc.

The Company is required to assess each of its
contracts with customers to determine whether
performance obligation is satisfied over time or at a
point in time in order to determine the appropriate
method for recognizing of revenue. The Company
recognizes the revenue over time only if it satisfies
the criteria given in Ind AS 115. Where the criteria as
per Ind AS 115 are not met, revenue is recognized at
a point in time.

In cases where the Company determines that
performance obligation is satisfied at a point in
time, revenue is recognized when the control
over the goods is transferred to the customer or
benefits of the services being provided is received
by the customer. The Company considers that the
customer has obtained the control of promised
goods or services; when the goods have been
dispatched/delivered to the destination as per terms
of the contract or services has been provided to the
customer as per agreed terms and the Company has
unconditional right to consideration.

In cases where the Company determines that
performance obligation is satisfied over time, then
revenue is recognised when the outcome of a
transaction can be estimated reliably by reference
to the stage of completion of the transaction (Input
Method). The outcome of a transaction can be
estimated reliably when all the following conditions
are satisfied:

1. The amount of revenue can be
measured reliably;

2. It is probable that the economic benefits
associated with the transaction will flow to
the Company;

3. The stage of completion of the transaction
at the end of the reporting period can be
measured reliably; and

4. The costs incurred or to be incurred in respect
of the transaction can be measured reliably.

Stage of completion is determined by the proportion
of actual costs incurred to-date, to the estimated
total costs of the transaction.

b. Transaction Price

The Company is required to determine the
transaction price in respect of each of its contracts
with customers.

Contract with customers for sale of goods or services
are either on a fixed price or on variable price basis.

For allocating the transaction price, the Company
measures the revenue in respect of each performance
obligation of contract at its relative standalone
selling price. The price that is regularly charged for
an item when sold separately is the best evidence
of its standalone selling price. In making judgment
about the standalone selling price, the Company also
assesses the impact of any variable consideration
in the contract, due to discounts or penalties, the

existence of any significant financing component
and any non-cash consideration in the contract.

ii) Interest income is accrued on a time basis, by
reference to the principal outstanding and
effective interest rate applicable.

iii) Dividend income is recognised when the right
to receive the payment is established.

iv) Duty drawback and other export incentive
benefits are recognised as income in the
Statement of Profit and Loss when the amount
is received, as the Company recognises such
benefits only upon receipt. Such income is
presented as Other Income.

C. Employee benefits

i. Short term employee benefits

Short term employee benefits such as Salaries,
wages, short term compensated absences, bonus,
ex-gratia and performance linked rewords including
non-monetary benefits that ore expected to be
settled wholly within12 months after the end of
period in which the employees rendered the related
services ore recognised in respect of employee
services up to the end of reporting period and ore
measured at the amounts expected to be paid when
the liabilities ore settled. The liabilities ore presented
as current employee benefits obligations in the
balance sheet.

Liabilities recognised in respect of short-term
employee benefits ore measured at the undiscounted
amount of the benefits expected to be paid in
exchange for the related service.

ii. Defined contribution plans

• Provident Fund Scheme

The Company makes specified monthly
contributions towards employee provident
fund directly to the Government under the
Employees Provident Fund Act, 1952.

iii. Defined benefit plans

The following post - employment benefit plans are
covered under the defined benefit plans:

• Gratuity Fund

The Company''s net obligation in respect of
defined benefit plans is calculated separately
for each plan by estimating the amount of
future benefit that employees have earned in
the current and prior periods, discounting that
amount and deducting the fair value of any
plan assets.

The calculation of defined benefit obligations is
performed annually by a qualified actuary using
the Projected Unit Credit Method. When the
calculation results in a potential asset for the
Company, the recognised asset is limited to the
present value of economic benefits available in
the form of any future refunds from the plan or
reductions in future contributions to the plan.
To calculate the present value of economic
benefits, consideration is given to any
applicable minimum funding requirements.

Re-measurement of the net defined benefit/
liability, which comprise actuarial gains and
losses, the return on plan assets (excluding
interest) and the effect of the asset ceiling,
if any (excluding interest), are recognised
immediately in OCI. Net interest expense/
(income) on the net defined liability/(assets) is
computed by applying the discount rate, used
to measure the net defined liability/(asset), to
the net defined liability/(asset) at the start of
the financial year after taking into account any
changes as a result of contribution and benefit
payments during the year. Net interest expense
and other expenses related to defined benefit
plans are recognised in profit or loss. When the
benefits of a plan are changed or when a plan
is curtailed, the resulting change in benefit that
relates to past service or the gain or loss on
curtailment is recognised immediately in profit
or loss. The Company recognises gains and
losses on the settlement of a defined benefit
plan when the settlement occurs.

D. Finance income and finance costs

The Company''s finance income and finance costs include:

• interest income;

• interest expense;

• the net gain or loss on financial assets at FVTPL

• exchange differences arising from monetary assets
and liabilities

• Interest income or expense is recognised using the
effective interest rate method.

E. Grants/ Subsidies

Government grants are recognised when there is
reasonable assurance that the Company will comply with
the conditions attached to the grants and that the grants
will be received.

Benefits received under the Export Promotion Capital
Goods (EPCG) Scheme in the form of exemption from

payment of customs duty on the import of eligible capital
assets are recognised as government grants. Such grants
are recognised as deferred income upon acquisition of the
related assets.

The related capital assets are recognised at their gross
carrying amount, and the deferred income is recognised
in the Statement of Profit and Loss on a systematic basis
over the useful life of the related assets in proportion to
the depreciation charged thereon.

Government grants related to revenue are recognised in
the Statement of Profit and Loss on a systematic basis over
the periods in which the related expenses, for which the
grants are intended to compensate, are recognised.

F. Borrowing cost

Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which
are assets that necessarily take a substantial period of
time to get ready for their intended use or sale, are added
to the cost of those assets, until such time as the assets
are substantially ready for their intended use or sale.
The Company considers a period of twelve months or more
as a substantial period of time. Interest income earned on
the temporary investment of specific borrowings pending
their expenditure on qualifying assets is deducted from
the borrowing costs eligible for capitalisation.

Finance expenses are recognised immediately in the
Statement of Profit and Loss, unless they are directly
attributable to qualifying assets, in which case they are
capitalised in accordance with the Company''s policy on
borrowing costs.

All other borrowing costs are recognised in the Statement
of Profit and Loss in the period in which they are incurred.

G. Income taxes

Income tax expense comprises Current tax and deferred
tax. Current and deferred tax are recognised in the
statement of profit or loss, except when they relate
to items that are recognised in other comprehensive
income or directly in equity, in which case, the current and
deferred tax are also recognised in other comprehensive
income or directly in equity respectively.

i) Current income taxes

The Company''s current tax is calculated using
tax rates and tax lows thot have been enacted or
substantively enacted by the end of the reporting
period in the countries where the Company, its
branches and jointly controlled operations operate
and generate taxable income.

ii) Deferred income taxes

Deferred tax is recognized on temporary differences
between the carrying amounts of assets and liabilities
in the financial statements and the corresponding
tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized
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 utilised. Such deferred tax assets and liabilities
are not recognised if the temporary difference
arises from the initial recognition (other than in a
business combination) of assets and liabilities in a
transaction that affects neither the taxable profit nor
the accounting profit.

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 realised,
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.

Deferred tax assets and liabilities are offset when
there is legally enforceable right to offset current
tox assets and liabilities and when the deferred
tax balances relate to the same taxation authority.
Current tax assets and liabilities ore offset when the
company has legally enforceable right to offset and
intends either to settle on a net basis, or to realise the
asset and settle the liability simultaneously.

Deferred tax assets are not recognised for temporary
differences between the carrying amount and tax
bases of investments in subsidiaries, branches and
associates and interest in joint arrangements where
it is not probable that the differences will reverse in
the foreseeable future and taxable profit will not be
available against which the temporary differences
can be utilized.

H. Inventories

Inventories are measured at the lower of cost and net
realizable value. Inventory of scrap is valued at estimated
realizable value. The cost of inventories is determined using
FIFO method. Cost includes direct materials, labour, other
direct cost and manufacturing overheads. Inventories of
finished goods also includes applicable taxes.

Net realisable value is the estimated selling price in
the ordinary course of business less estimated costs
of completion and estimated costs necessary to
make the sale.

I. Property, plant and equipment

i) Recognition and measurement

Items of property, plant and equipment are
measured at cost less accumulated depreciation and
any accumulated impairment losses.

The cost of an item of property, plant and equipment
comprises:

a) its purchase price, including import duties
and non-refundable purchase taxes, after
deducting trade discounts and rebates.

b) any costs directly attributable to bringing the
asset to the location and condition necessary
for it to be capable of operating in the manner
intended by management.

c) the initial estimate of the costs of dismantling
and removing the item and restoring the site on
which it is located, the obligation for which an
entity incurs either when the item is acquired
or as a consequence of having used the item
during a particular period for purposes other
than to produce inventories during that period.

Income and expenses related to the incidental
operations, not necessary to bring the item
to the location and condition necessary for
it to be capable of operating in the manner
intended by management, are recognised in
profit or loss.

If significant parts of an item of property, plant
and equipment have different useful lives,
then they are accounted and depreciated
for as separate items (major components) of
property, plant and equipment

Any gain or loss on disposal of an item of
property, plant and equipment is recognised
in statement of profit and loss.

ii) Subsequent expenditure

Subsequent expenditure is capitalised only if it
is probable that the future economic benefits
associated with the expenditure will flow to
the Company and the cost of the item can be
measured reliably.

iii) Depreciation

Depreciation is provided, pro rata to the period of
use, based on useful lives specified in Schedule II to
the Companies Act, 2013 except in the case where
the estimated useful life based on management
experience and technical evaluation differs.

Depreciation is charged on the Straight-Line method
(SLM) in the Company. Depreciation methods,
useful lives and residual values are reviewed at each
reporting date and adjusted, if appropriate.

Assets held under finance leases are depreciated
over their expected useful lives on the same basis as
owned assets. However, when there is no reasonable
certainty that ownership will be obtained by the end
of the lease term, assets are depreciated over the
shorter of the lease term and their useful lives.

Leasehold land is amortised over the period of lease
on a straight-line basis.

Short term leases and leases of low value assets

Payments associated with short-term leases of
equipment and all leases of low-value assets are
recognised on a straight-line basis as an expense
in profit or loss. Short-term leases are leases with a
lease term of 12 months or less.

An item of property, plant and equipment is
derecognised upon disposal or when no future
economic benefits are expected to arise from the
continued use of the asset. Any gain or loss arising
on the disposal or retirement of an item of property,

plant and equipment is determined as the difference
between the sales proceeds and the carrying amount
of the asset and is recognised in the Statement of
Profit and Loss.

iv) Capital work-in-progress

Capital work-in-progress comprises of assets in the
course of construction for production or/and supply
of goods or services or administrative purposes,
or for purposes not yet determined, are carried at
cost, less any recognised impairment loss. At the
point when an asset is operating at management''s
intended use, the cost of construction is transferred
to the appropriate category of property, plant and
equipment. Costs associated with the commissioning
of an asset are capitalised where the asset is available
for use and commissioning has been completed.

J. Share-based payments:

a) Employees of the Company receives remuneration
in the form of share-based payments, whereby
employees render services as consideration for
equity instruments (equity-settled transactions).

b) The cost of equity-settled transactions is determined
by the fair value at the date when the grant is made
using an appropriate valuation model.

c) That cost is recognised, together with a
corresponding increase in share-based payment
(SBP) reserves in equity, over the period in which
the performance and/ or service conditions are
fulfilled. The cumulative expense recognised for
equity-settled transactions at each reporting date
until the vesting date reflects the extent to which
the vesting period has expired and the Company''s
best estimate of the number of equity instruments
that will ultimately vest.

d) When the terms of an equity-settled award are
modified, the minimum expense recognised is the
expense had the terms not been modified, if the
original terms of the award are met. An additional
expense is recognised for any modification that
increases the total fair value of the share-based
payment transaction or is otherwise beneficial to the
employee as measured at the date of modification.
Where an award is cancelled by the entity or by the
counterparty, any remaining element of the fair
value of the award is expensed immediately through
profit or loss.

e) The dilutive effect of outstanding options is reflected
as additional share dilution in the computation of
diluted earnings per share.

K. Leases

The Company has adopted Ind AS 116, effective from
annual reporting period beginning April 1, 2019 and
applied the standard to its existing leases, with the
modified retrospective method. This has resulted into
recognition of Right of use assets at an amount equal to
Lease liability on date of initial application.

The Company considers whether a contract is, or contains
a lease. A lease is defined as a contract, or part of a contract,
that conveys the right to use an asset (the underlying
asset) for a period of time in exchange for consideration.
To apply this definition the Company assesses whether the
contract meets three key evaluations which ore whether:

• the contract contains an identified asset, which is
either explicitly identified in the contract or implicitly
specified by being identified at the time the asset is
made available to the Company.

• the Company has the right to obtain substantially all
of the economic benefits from use of the identified
asset throughout the period of use, considering its
rights within the defined scope of the contract.

• the Company has the right to direct the use of
the identified asset throughout the period of use.
The Company assesses whether it has the right to
direct ''how and for what purpose'' the asset is used
throughout the period of use.

Measurement and recognition of leases as a lessee

At lease commencement date, the Company recognizes a
right-of-use asset and a lease liability on the balance sheet.

The right-of-use asset is measured at cost, which is made
up of the initial measurement of the lease liability, any
initial direct costs incurred by the Company, an estimate
of any costs to dismantle and remove the asset at the end
of the lease, and any lease payments made in advance
of the lease commencement date (net of any incentives
received).

The company depreciates the right-of-use assets on a
straight-line basis from the lease commencement date
to the earlier of the end of the useful life of the right-of
use asset or the end of the lease term. The Company also
assesses the right-of-use asset for impairment when such
indicators exist.

At the commencement date, the Company measures the
lease liability at the present value of the lease payments
unpaid at that date, discounted using the interest rate
implicit in the lease if that rate is readily available or the
Company''s incremental borrowing rate.

The Company has elected to account for short-term leases
using the practical expedients. Instead of recognizing a
right-of-use asset and lease liability, the payments in
relation to these are recognized as an expense in profit
or loss on a straight-line basis over the lease term.
Short-term leases ore leases with a lease term of 12
months or less.

Certain lease arrangements include the option to extend
or terminate the lease before the end of the lease term.
The right-of-use assets and lease liabilities include these
options when it is reasonably certain that the option will
be exercised.

L. Financial Instruments

Financial assets and financial liabilities are recognized
when the Company becomes a party to the contractual
provisions of the instruments.

a) Financial Assets

Financial assets comprises of investments in equity
instruments, cash and cash equivalents, loans and
other financial assets.

Initial Recognition:

All financial assets are recognized initially at fair value
plus, in the case of financial assets not recorded at
fair value through Profit or loss, transaction costs
that are attributable to the acquisition of financial
assets. Purchase or sales of financial assets that
requires delivery of assets within a period of time
frame established by regulation or convention in
the market place are recognized on the trade date,
i.e. the date the company committed to purchase or
sell the assets.

Subsequent Measurement:

i) . Financial assets measured at amortized Cost:

Financial assets are subsequently measured
at amortized cost if theses financial assets
are held within a business whose objective
is to hold theses assets in order to collect
contractual cash flows and where contractual
terms of financial assets 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):

Financial Assets that are held within a business
model whose objective is achieved by both
collective contractual cash flows and selling
financial assets and the contractual terms
of financial assets give rise on specified

dates to cash flows that are solely payments
of principal and interest on the principal
amount outstanding are subsequently
measure at FVTOCI are recognized in Other
Comprehensive Income.

Equity instruments held for trading are
classified as at fair value through profit or
loss (FVTPL). For other equity instruments
the company classifieds the same as FVTOCI.
The classification is made on initial recognition
and is irrevocable. Fair Value changes on equity
instruments at FVTOCI, excluding dividends
are recognized in Other Comprehensive
Income (OCI)

iii). Fair Value through Profit or Loss (FVTPL):

Financial Assets are measured at FVTPL if
does not meet the criteria for classification as
measured at amortized cost or at FVTOCI. All fair
changes are recognized in the Statement of
Profit and Loss.

De-recognition of Financial Assets:

Financial Assets are derecognized when the
contractual rights to cash flows from the financial
assets expire or the financial assets is transferred,
and he transfer qualifies for de-recognition.
On de-recognition of the financial assets in its
entirety, the difference between the carrying amount
(measured at the date of de-recognition) and the
consideration received (including any new assets
obtained less any new liabilities assumed) shall be
recognized in the statement of Profit and Loss.

b) Financial Liabilities

The Company''s financial liabilities include following:
o Borrowing from Banks

o Borrowing from Others

o Trade Payables

o Other Financial Liabilities

Classification

The company''s financial liabilities are measured at
amortized cost.

Initial Recognition and Measurement

Financial liabilities are initially recognized at fair
value plus any transaction costs, (if any) which are
attributable to acquisition of the financial liabilities.

Subsequent Measurement:

Financial liabilities are subsequently measured
at amortised cost using the effective interest
rate method.

The Effective Interest Rate Method is a method of
calculating the amortised cost of a financial liability
and of allocating interest expenses over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash payments
(including transaction costs and other premiums or
discounts) through the expected life of the financial
liability.

De-recognition of Financial Liabilities:

Financial liabilities shall be derecognized when, and
only when it is extinguished i.e. when the obligation
specified in the contract is discharged or cancelled
or expires.

c) Offsetting of Financial assets and Financial
Liabilities:

Financial assets and Financial Liabilities are offset
and the net amount is presented in Balance Sheet
when, and only when, the Company has legal right
to offset the recognized amounts and intends either
to settle on the net basis or to realize the assets and
liabilities simultaneously.

d) Reclassification of Financial Instruments:

The Company determines classification of financial
assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial
assets which are categorized as equity instruments
at FVTOCI, and financial assets or liabilities that
are specifically designated as FVTPL. For financial
assets which are debt instruments, a reclassification
is made only if there is a change in business
model for managing those assets. Changes to the
business model are expected to be very infrequent.
The management determines the change in a
business model as a results of external of internal
changes which are significant to the Company''s
Operations. A Change in business occurs when
the company either befins or ceases to perform an
activity that is significant to its operations. IF the
Company reclassifies financial assets, it applies the
reclassification prospectively effective from the
reclassification date which is the first day of the
immediately next reporting period following the
change in business model. The Company does not
restate any previously recognized gains, losses
(including impairment gains or losses) or interest.

M. Fair Value Measurement

A number of Company''s accounting policies and
disclosures require the determination of fair value, for both
financial and non-financial assets and liabilities. Fair value
is the price that would be received on sell of an assets
or plaid to transfer a liability in an orderly transaction

between market participants at the measurement date.
A fair value measurement assumes that the transaction
to sell the asset or transfer the liability takes place either
in the principal market for the assets or liabilities or in the
absence of a principal market, in the most advantageous
market for the assets or liability. The principal market or
the most advantageous market must be accessible to
the Company.

The fair value of an asset or liability is measured using
the assumptions that market participants would use
when pricing the assets or liability, assuming that market
participants act in their economic best interest.

A fair value measurement of a non-financial asset takes
into account a market participant''s ability to generate
economic benefits by using the assets in its highest the
best use or by selling it to another market participant that
would use the assets in its highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximizing the
use of relevant observable inputs and minimizing the use
of unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the Ind As Financial Statements are
categorized within the fair value hierarchy based on
the lowest level input that is significant to the fair value
measurement as a whole. The fair value hierarchy is
described as below;

a) Level 1 - unadjusted quoted prices in active
markets for identical assets and liabilities.

b) Level 2 - Input other than quoted prices included
within Level 1 that are observable for the asset or
liabilities, either directly or indirectly.

c) Level 3 - unobservable inputs for the asset or
liability.

For assets and liabilities that are recognized in the
Ind As Financial Statement at fari value on a recurring
basis, the company determines whether transfers have
occurred between levels in the hierarchy by re-assessing
categorization at the end of each reporting period.

For the purpose of fair value disclosures, the Company has
determined classes of assets and liabilities on the basis of
the nature, characteristics and risk of the asset or liability
and the level of fair value hierarchy.

Fair values have been determined for measurement
and / or disclosure purposes based on the following
methods. When appliable, further information about the

assumptions made in determining fair values is disclosed
in the notes specific to that assets or liability.

a) Investment in equity and debt securities

The fair value is determined by reference to their
quoted price at the reporting date. In the absence
of quoted price, the value of the financial asset is
measured using valuation techniques.

b) Trade and other receivables

The fair value of trade and other receivables is
estimated as the present value of future cash flows,
discounted at the market rate of interest at the
reporting date. However, in respect of such financial
instruments, fair value generally approximates
the carrying amount due to short term nature of
such assets.

c) Non derivative financial liabilities

Fair value, which is determined for disclosure
purposes, is calculated based on the present value of
future principal and interest cash flows, discounted
at the market rate of interest at the reporting date.
For finance leases, the market rate of interest is
determined by reference to similar lease agreements.

7. Significant accounting policies followed by the
Company

A. Foreign currency

i. Foreign currency transactions

In accordance with IndAS 21, on accounting
for the effects of changes in foreign exchange
rates, Transaction in foreign currencies are
recognised at the prevailing exchange rates on
the transaction date. Realized gains and losses
on settlement of foreign currency transactions
are recognised in the profit and loss account,
foreign currency assets and liabilities at the year-
end are translated at the year-end exchange
rates, and the resultant exchange difference is
recognised in the profit and loss account.

Foreign currency differences are generally
recognised in profit or loss. Any income or
expense on account of exchange difference
either on settlement or on translation is
recognised in the Statement of profit and loss in
the year in which they arise.

The Company has adopted Appendix B to
IndAS 21, Foreign Currency transactions
and advance considerations notified in the
Companies (Indian Accounting Standards)
Rules, 2018. Accordingly, the exchange rate for
translation of foreign currency transaction; in
cases when Company receives or pays advance
consideration is earlier of:-

• the date of initial recognition of non¬
monetary prepayment asset or deferred
income liability or

• the date that the related item is recognized
in the financial statements.

If the transaction is recognized in stages;
then a transaction date will be established
for each stage.

B. Revenue Recognition

i) Revenue from contract with customers for
sale of goods and provision of services

The Company recognizes revenue from contracts
with the customers based on five step model
defined in IndAS 115. The Company satisfies
a performance obligation and recognizes
revenue over time, if any of the conditions
given in IndAS 115 are satisfied; else revenue

1. The amount of revenue can be
measured reliably;

2. It is probable that the economic benefits
associated with the transaction will flow
to the Company;

3. The stage of completion of the transaction
at the end of the reporting period can be
measured reliably; and

4. The costs incurred or to be incurred
in respect of the transaction can be
measured reliably.

Stage of completion is determined by the
proportion of actual costs incurred to-date, to
the estimated total costs of the transaction.

b. Transaction Price

The Company is required to determine the
transaction price in respect of each of its
contracts with customers.

Contract with customers for sale of goods
or services are either on a fixed price or on
variable price basis.

For allocating the transaction price, the
Company measures the revenue in respect of
each performance obligation of contract at
its relative standalone selling price. The price
that is regularly charged for an item when sold
separately is the best evidence of its standalone
selling price. In making judgment about
the standalone selling price, the Company
also assesses the impact of any variable
consideration in the contract, due to discounts
or penalties, the existence of any significant
financing component and any non-cash
consideration in the contract.

iii) I nterest income is accrued on a time basis, by
reference to the principal outstanding and
effective interest rate applicable.

iv) Dividend income is recognised when the right
to receive the payment is established.

Employee benefits

i. Short term employee benefits

Short-term employee benefits are expensed
as the related service is provided. A liability
is recognised for the amount expected to be
paid if the Company has a present legal or
constructive obligation to pay this amount as a
result of past service provided by the employee
and the obligation can be estimated reliably.

ii. Defined contribution plans

• Provident Fund Scheme

The Company makes specified monthly
contributions towards employee provident
fund directly to the Government under the
Employees Provident Fund Act, 1952.

• exchange differences arising from monetary
assets and liabilities

Interest income or expense is recognised using the
effective interest rate method.

E. Grants/ Subsidies

Government grants are recognised where there is
reasonable assurance that the grant will be received
and all attached conditions will be complied with.

Where the grant relates to an asset, the cost of the
asset is shown at gross value and grant thereon is
treated as capital grant. The capital grant will be
recognised as income in the statement of profit
and loss over the period and in proportion in which
depreciation is charged.

Revenue grants are recognised in the statement
of profit and loss in the same period as the related
cost, which they are intended to compensate,
are accounted for.

F. Borrowing cost

Borrowing costs directly attributable to the
acquisition, construction or production of qualifying
assets, which are assets that necessarily take a
substantial period of time to get ready for their
intended use or sale, are added to the cost of those
assets, until such time as the assets are substantially
ready for their intended use or sale. The Company
considers a period of twelve months or more as a
substantial period of time. Interest income earned
on the temporary investment of specific borrowings
pending their expenditure on qualifying assets
is deducted from the borrowing costs eligible for
capitalisation.

Finance expenses are recognised immediately in the
Statement of Profit and Loss, unless they are directly
attributable to qualifying assets, in which case they
are capitalised in accordance with the Company''s
policy on borrowing costs.

All other borrowing costs are recognised in the
Statement of Profit and Loss in the period in which
they are incurred.

G. Taxation

The income tax expense or credit for the period
is the tax payable on the current period''s taxable
income based on the applicable income tax rate for
each jurisdiction adjusted by changes in deferred
tax assets and liabilities attributable to temporary
differences and to unused tax losses.

i) Current tax

The Company''s current tax is calculated using
tax rates that have been enacted or substantively
enacted by the end of the reporting period in
the countries where the Company, its branches
and jointly controlled operations operate and
generate taxable income.

Management periodically evaluates positions
taken in tax returns with respect to situations
in which applicable tax regulations is subject to
interpretations. It establishes provisions, where
appropriate, on the basis of amounts expected
to be paid to the tax authorities.

ii) 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 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 utilised. Such deferred
tax assets and liabilities are not recognised
if the temporary difference arises from the
initial recognition (other than in a business
combination) of assets and liabilities in a
transaction that affects neither the taxable
profit nor the accounting profit.

Deferred tax liabilities are recognised for taxable
temporary differences associated with interests
in jointly controlled operations except where
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
interests are only recognised to the extent that
it is probable that there will be sufficient taxable
profits against which to utilise the benefits of the
temporary differences and they are expected to
reverse in the foreseeable future.

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.

Deferred tax assets / liabilities in respect of
temporary differences which originate and
reverse during the tax holiday period are not
recognised. Deferred tax assets / liabilities in
respect of temporary differences that originate
during the tax holiday period but reverse after
the tax holiday period are recognised.

H. Inventories

Inventories are measured at the lower of cost and
net realizable value. Inventory of scrap is valued at
estimated realizable value. The cost of inventories
is determined using FIFO method. Cost includes
direct materials, labour, other direct cost and

manufacturing overheads. Inventories of finished
goods also includes applicable taxes.

Net realisable value is the estimated selling price
in the ordinary course of business less estimated
costs of completion and estimated costs necessary
to make the sale.

I. Property, plant and equipment

i) Recognition and measurement

Items of property, plant and equipment are
measured at cost less accumulated depreciation
and any accumulated impairment losses.

The cost of an item of property, plant and
equipment comprises:

a) its purchase price, including import duties
and non-refundable purchase taxes, after
deducting trade discounts and rebates.

b) any costs directly attributable to bringing
the asset to the location and condition
necessary for it to be capable of operating
in the manner intended by management.

c) the initial estimate of the costs of
dismantling and removing the item and
restoring the site on which it is located,
the obligation for which an entity incurs
either when the item is acquired or as a
consequence of having used the item
during a particular period for purposes
other than to produce inventories
during that period.

Income and expenses related to the incidental
operations, not necessary to bring the item to
the location and condition necessary for it to be
capable of operating in the manner intended by
management, are recognised in profit or loss.

If significant parts of an item of property, plant
and equipment have different useful lives, then
they are accounted and depreciated for as
separate items (major components) of property,
plant and equipment

Any gain or loss on disposal of an item of
property, plant and equipment is recognised in
statement of profit and loss.

ii) Subsequent expenditure

Subsequent expenditure is capitalised only if it
is probable that the future economic benefits
associated with the expenditure will flow to
the Company and the cost of the item can be
measured reliably.

iii) Depreciation

Depreciation is provided, pro rata to the
period of use, based on useful lives specified in
Schedule II to the Companies Act, 2013 except in

the case where the estimated useful life based
on management experience and technical
evaluation differs.

Depreciation is charged on the Straight¬
Line method (SLM) in the Company.
Depreciation methods, useful lives and residual
values are reviewed at each reporting date and
adjusted, if appropriate.

Capital expenditure in respect of which
ownership does not vest with the Company is
amortized over a period of five years.

Assets held under finance leases are depreciated
over their expected useful lives on the same
basis as owned assets. However, when there is
no reasonable certainty that ownership will be
obtained by the end of the lease term, assets are
depreciated over the shorter of the lease term
and their useful lives.

Leasehold land is amortised over the period of
lease on a straight-line basis.

Short term leases and leases of low value
assets

Payments associated with short-term leases of
equipment and all leases of low-value assets
are recognised on a straight-line basis as an
expense in profit or loss. Short-term leases are
leases with a lease term of 12 months or less.

The estimated useful life of these Property, Plant
and Equipment is mentioned below:

An item of property, plant and equipment is
derecognised upon disposal or when no future
economic benefits are expected to arise from
the continued use of the asset. Any gain or loss
arising on the disposal or retirement of an item
of property, plant and equipment is determined
as the difference between the sales proceeds
and the carrying amount of the asset and is
recognised in the Statement of Profit and Loss.

iv) Capital work-in-progress

Capital work-in-progress comprises of assets
in the course of construction for production
or/and supply of goods or services or
administrative purposes, or for purposes not

yet determined, are carried at cost, less any
recognised impairment loss. At the point when
an asset is operating at management''s intended
use, the cost of construction is transferred to
the appropriate category of property, plant
and equipment. Costs associated with the
commissioning of an asset are capitalised where
the asset is available for use and commissioning
has been completed.

J. Share-based payments:

a) Employees of the Company receives
remuneration in the form of share-based
payments, whereby employees render services
as consideration for equity instruments (equity-
settled transactions).

b) The cost of equity-settled transactions is
determined by the fair value at the date
when the grant is made using an appropriate
valuation model.

c) That cost is recognised, together with a
corresponding increase in share-based payment
(SBP) reserves in equity, over the period in which
the performance and/ or service conditions are
fulfilled. The cumulative expense recognised for
equity-settled transactions at each reporting
date until the vesting date reflects the extent
to which the vesting period has expired and
the Company''s best estimate of the number of
equity instruments that will ultimately vest.

d) When the terms of an equity-settled award are
modified, the minimum expense recognised is
the expense had the terms not been modified,
if the original terms of the award are met.
An additional expense is recognised for any
modification that increases the total fair value
of the share-based payment transaction
or is otherwise beneficial to the employee
as measured at the date of modification.
Where an award is cancelled by the entity or by
the counterparty, any remaining element of the
fair value of the award is expensed immediately
through profit or loss.

e) The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.

K. Leases

The Company has adopted IndAS 116, effective from
annual reporting period beginning April 1, 2019 and
applied the standard to its existing leases, with the
modified retrospective method. This has resulted
into recognition of Right of use assets at an amount
equal to Lease liability on date of initial application.

A contract is, or contains, a lease if the contract conveys
the right to control the use of an identified asset for a
period of time in exchange for consideration.

Company as a lessee

The Company accounts for each lease component
within the contract as a lease separately from non¬
lease components of the contract and allocates
the consideration in the contract to each lease
component on the basis of the relative stand-alone
price of the lease component and the aggregate
stand-alone price of the non-lease components.

The Company recognises right-of-use asset
representing its right to use the underlying asset
for the lease term at the lease commencement
date. The cost of the right-of-use asset measured
at inception is comprising of the amount of the
initial measurement of the lease liability adjusted
for any lease payments made at or before the
commencement date less any lease incentives
received. The right-of-use assets is subsequently
measured at cost less any accumulated depreciation,
accumulated impairment losses, if any and adjusted
for any re-measurement of the lease liability.
The right of- use assets are depreciated using the
straight-line method from the commencement date
over the shorter of lease term or useful life of right-
of-use asset. The estimated useful lives of right-of-use
assets are determined on the same basis as those of
property, plant and equipment. Right-of-use assets
are tested for impairment whenever there is any
indication that their carrying amounts may not be
recoverable. Impairment loss, if any, is recognised in
the statement of profit and loss.

The Company measures the lease liability at the
present value of the lease payments that are not
paid at the commencement date of the lease.
The lease payments are discounted using the
Company''s genral borrowing rate. For leases with
reasonably similar characteristics, the Company,
on a lease by lease basis, may adopt either the
incremental borrowing rate specific to the lease
or the incremental borrowing rate for the portfolio
as a whole. The lease payments include fixed
payments, variable lease payments, residual value
guarantees, exercise price of a purchase option
where the Company is reasonably certain to
exercise that option and payments of penalties for
terminating the lease, if the lease term reflects the
lessee exercising an option to terminate the lease.
The lease liability is subsequently re-measured
by increasing the carrying amount to reflect
interest on the lease liability, reducing the carrying
amount to reflect the lease payments made and
re-measuring the carrying amount to reflect
any reassessment or lease modifications or to
reflect revised in-substance fixed lease payments.
The Company recognises the amount of the re¬
measurement of lease liability due to modification
as an adjustment to the right-of-use asset and
statement of profit and loss depending upon the

nature of modification. Where the carrying amount
of the right-of-use asset is reduced to zero and
there is a further reduction in the measurement
of the lease liability, the Company recognises
any remaining amount of the re-measurement in
statement of profit and loss.

The Company has elected not to apply the
requirements of IndAS 116 Leases to;

1. Short-term leases of all assets that have a lease
term of 12 months or less, and

2. Leases for which the underlying asset is of low
value as agreed by the management.

The lease payments associated with above 2 types of
leases are recognized as an expense on a straight-line
basis over the lease term.

L. Financial Instruments

Financial assets and financial liabilities are recognized
when the Company becomes a party to the
contractual provisions of the instruments.

a) Financial Assets

Financial assets comprises of investments in
equity instruments, cash and cash equivalents,
loans and other financial assets.

Initial Recognition:

All financial assets are recognized initially at
fair value plus, in the case of financial assets
not recorded at fair value through Profit or
loss, transaction costs that are attributable to
the acquisition of financial assets. Purchase or
sales of financial assets that requires delivery of
assets within a period of time frame established
by regulation or convention in the market
place are recognized on the trade date, i.e.
the date the Company committed to purchase
or sell the assets.

Subsequent Measurement:

i) . Financial assets measured at amortized Cost:

Financial assets are subsequently
measured at amortized cost if theses
financial assets are held within a business
whose objective is to hold theses assets
in order to collect contractual cash flows
and where contractual terms of financial
assets 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):

Financial Assets that are held within
a business model whose objective is
achieved by both collective contractual
cash flows and selling financial assets and

the contractual terms of financial assets
give rise on specified dates to cash flows
that are solely payments of principal
and interest on the principal amount
outstanding are subsequently measure
at FVTOCI are recognized in Other
Comprehensive Income.

Equity instruments held for trading are
classified as at fair value through profit or
loss (FVTPL). For other equity instruments
the Company classifieds the same as
FVTOCI. The classification is made on initial
recognition and is irrevocable. Fair Value
changes on equity instruments at FVTOCI,
excluding dividends are recognized in
Other Comprehensive Income (OCI)

iii). Fair Value through Profit or Loss (FVTPL):

Financial Assets are measured at FVTPL if
does not meet the criteria for classification
as measured at amortized cost or at
FVTOCI. All fair changes are recognized in
the Statement of Profit and Loss.

De-recognition of Financial Assets:

Financial Assets are derecognized when the
contractual rights to cash flows from the
financial assets expire or the financial assets is
transferred, and he transfer qualifies for de¬
recognition. On de-recognition of the financial
assets in its entirety, the difference between
the carrying amount (measured at the date of
de-recognition) and the consideration received
(including any new assets obtained less any new
liabilities assumed) shall be recognized in the
statement of Profit and Loss.

b) Financial Liabilities

The Company''s financial liabilities include
following:

o Borrowing from Banks

o Borrowing from Others

o Trade Payables

o Other Financial Liabilities

Classification

The Company''s financial liabilities are measured
at amortized cost.

Initial Recognition and Measurement

Financial liabilities are initially recognized at
fair value plus any transaction costs, (if any)
which are attributable to acquisition of the
financial liabilities.

Subsequent Measurement:

Financial liabilities are subsequently measured
at amortised cost using the effective interest
rate method.

The Effective Interest Rate Method is a method
of calculating the amortised cost of a financial
liability and of allocating interest expenses over
the relevant period. The effective interest rate is
the rate that exactly discounts estimated future
cash payments (including transaction costs
and other premiums or discounts) through the
expected life of the financial liability.

De-recognition of Financial Liabilities:

Financial liabilities shall be derecognized when,
and only when it is extinguished i.e. when the
obligation specified in the contract is discharged
or cancelled or expires.

c) Offsetting of Financial assets and Financial
Liabilities:

Financial assets and Financial Liabilities are offset
and the net amount is presented in Balance
Sheet when, and only when, the Company has
legal right to offset the recognized amounts and
intends either to settle on the net basis or to
realize the assets and liabilities simultaneously.

d) Reclassification of Financial Instruments:

The Company determines classification
of financial assets and liabilities on initial
recognition. After initial recognition, no
reclassification is made for financial assets
which are categorized as equity instruments
at FVTOCI, and financial assets or liabilities
that are specifically designated as FVTPL.
For financial assets which are debt instruments,
a reclassification is made only if there is a change
in business model for managing those assets.
Changes to the business model are expected
to be very infrequent. The management
determines the change in a business model as
a results of external of internal changes which
are significant to the Company''s Operations.
A Change in business occurs when the
Company either befins or ceases to perform
an activity that is significant to its operations.
IF the Company reclassifies financial assets,
it applies the reclassification prospectively
effective from the reclassification date which is
the first day of the immediately next reporting
period following the change in business model.
The Company does not restate any previously
recognized gains, losses (including impairment
gains or losses) or interest.

M. Fair Value Measurement

A number of Company''s accounting policies and

disclosures require the determination of fair value, for

both financial and non-financial assets and liabilities.

Fair value is the price that would be received on
sell of an assets or plaid to transfer a liability in an
orderly transaction between market participants at
the measurement date. A fair value measurement
assumes that the transaction to sell the asset or
transfer the liability takes place either in the principal
market for the assets or liabilities or in the absence
of a principal market, in the most advantageous
market for the assets or liability. The principal market
or the most advantageous market must be accessible
to the Company.

The fair value of an asset or liability is measured
using the assumptions that market participants
would use when pricing the assets or liability,
assuming that market participants act in their
economic best interest.

A fair value measurement of a non-financial asset
takes into account a market participant''s ability to
generate economic benefits by using the assets in
its highest the best use or by selling it to another
market participant that would use the assets in its
highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the Ind As Financial Statements are
categorized within the fair value hierarchy based
on the lowest level input that is significant to the
fair value measurement as a whole. The fair value
hierarchy is described as below;

a) Level 1 - unadjusted quoted prices in active
markets for identical assets and liabilities.

b) Level 2 - Input other than quoted prices
included within Level 1 that are observable for
the asset or liabilities, either directly or indirectly.

c) Level 3 - unobservable inputs for the
asset or liability.

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

For the purpose of fair value disclosures, the Company
has determined classes of assets and liabilities on the
basis of the nature, characteristics and risk of the
asset or liability and the level of fair value hierarchy.

Fair values have been determined for measurement
and / or disclosure purposes based on the following
methods. When appliable, further information about
the assumptions made in determining fair values is
disclosed in the notes specific to that assets or liability.

a) Investment in equity and debt securities

The fair value is determined by reference to
their quoted price at the reporting date. In the
absence of quoted price, the value of the financial
asset is measured using valuation techniques.

d) Trade and other receivables

The fair value of trade and other receivables is
estimated as the present value of future cash
flows, discounted at the market rate of interest
at the reporting date. However, in respect of
such financial instruments, fair value generally
approximates the carrying amount due to short
term nature of such assets.

c) Non derivative financial liabilities

Fair value, which is determined for disclosure
purposes, is calculated based on the present
value of future principal and interest cash flows,
discounted at the market rate of interest at the
reporting date. For finance leases, the market
rate of interest is determined by reference to
similar lease agreements.

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

1. General information

Advait Infratech Limited ("the Company"), founded by Shri. Shalin Rahul Sheth in the year 2009 is one among the best-established companies in India, operating in manufacturing and supply of power transmission products such as Stringing Tools, OPGW (Optical Fibre Ground Wire), OFC cables, ACS (Aluminium Clad Steel Wire), ERS (Emergency Restoration System), and OPGW joint boxes. The Company is incorporated in India. The registered office of the Company is situated at KIFS Corporate House, 1⁵¹ Floor, Iscon Ambli Road, Beside Hotel Planet Landmark, Near Ashok Vatika, Ambli, Ahmedabad -380058. These financial statements are approved for issue by the Board of Directors on May 30, 2024.

2. Statement of compliance

• The financial statements have been prepared in accordance with Indian Accounting Standards (''Ind AS'') notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) (Amendment) Rules, 2016.

• Upto the year ended 31^st March, 2023, the Company prepared its financial statements in accordance with the requirements of previous GAAP prescribed under Section 133 of the Companies Act, 2013 (''the Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014. These are the Company''s first Ind AS financial statements. The date of transition to Ind AS is 1^st April, 2022. Refer Note 43 for the details of significant firsttime adoption exemptions availed by the Company and an explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, performance and cash flows.

3. Functional and presentation currency

These financial statements are presented in Indian Rupees (''), which is the Company''s functional currency. All amounts have been rounded off to two decimal places to the nearest lakh, unless otherwise indicated.

4. Basis of preparation of financial statements

In accordance with the notification issued by the Ministry of Corporate Affairs, the Company is required to prepare its Financial Statements as per the Indian Accounting Standards (''Ind AS'') prescribed under Section 133 of the Companies Act, 2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Accounting Standards) Amendment Rules, 2016 with effect from 1^st April, 2016. Accordingly, the Company has prepared these Financial Statements which comprise the Balance Sheet as at 31^st March, 2024, the Statement of Profit and Loss, the

Statement of Cash Flows and the Statement of Changes in Equity for the year ended 31^st March, 2024, and a summary of the significant accounting policies and other explanatory information (together hereinafter referred to as "Financial Statements". The figures for the previous year ended 31^st March, 2023 and Opening Balance Sheet as on 1^st April, 2022 have also been reinstated by the Management as per the requirements of Ind AS.

The financial statements have been prepared on a going concern basis using historical cost convention basis except for the following items:

¦ certain financial assets and liabilities (including mutual fund investments and derivatives) that are measured at fair value;

¦ defined benefit plans - plan assets measured at fair value; and

¦ share-based payments.

4.1 Basis of measurement

This Ind AS Financial Statements has been prepared on an accrual basis under the historical cost convention except for the following:

¦ Certain financial assets and liabilities classified as Fair value through Profit and Loss (FVTPL) or Fair value through Other Comprehensive Income (FVTOCI)

¦ The defined benefit asset/(liability) is recognised as the present value of defined benefit obligation less fair value of plan assets

The above items have been measured at Fair value and methods used to measure fair value are disclosed further in Note 40(c).

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

5. Key estimates and assumptions

The preparation of financial statements in accordance with IndAS requires use of estimates and assumptions, which might have an effect on their recognition and measurement in the (i) balance sheet and (ii) statement of profit and loss. The actual amounts may differ from these estimates.

Estimates and assumptions are required in particular for:

¦ Determination of the estimated useful lives of tangible assets and intangible assets

Useful lives of assets are based on the life prescribed in Schedule II of the Companies Act, 2013. In cases, where the useful lives are different from that prescribed in

Schedule II, they are based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers'' warranties and maintenance support.

¦ Recognition and measurement of defined benefit obligations

The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial assumptions include discount rate, trends in salary escalation, actuarial rates and life expectancy. The discount rate is determined by reference to market yields at the end of the reporting period on government bonds. The period to maturity of the underlying bonds corresponds to the probable maturity of the postemployment benefit obligations.

¦ Recognition of deferred tax assets

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases, and unutilized business loss and unabsorbed depreciation and tax credits. Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary differences, unused tax losses, unabsorbed depreciation and unused tax credits could be utilized.

¦ Recognition and measurement of other provisions

The recognition and measurement of other provisions are based on the assessment of the probability of an outflow of resources, and on past experience and circumstances known at the balance sheet date. The actual outflow of resources at a future date may therefore vary from the amount included in other provisions.

¦ Fair value of financial instruments

Investments in mutual funds and equity instrument are carried at fair value.

6. Measurement of fair values

The Company''s accounting policies and disclosures require the measurement of fair values for financial instruments. The Company has an established control framework with respect to the measurement of fair values. The management regularly reviews significant observable inputs and valuation adjustments.

7. Significant accounting policies followed by the company

A. Foreign currency

i. Foreign currency transactions

In accordance with IndAS 21, on accounting for the effects of changes in foreign exchange rates, Transaction in foreign currencies are recognised at

the prevailing exchange rates on the transaction date. Realized gains and losses on settlement of foreign currency transactions are recognised in the profit and loss account, foreign currency assets and liabilities at the year-end are translated at the year-end exchange rates, and the resultant exchange difference is recognised in the profit and loss account.

Foreign currency differences are generally recognised in profit or loss. Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Statement of profit and loss in the year in which they arise.

The company has adopted Appendix B to IndAS 21, Foreign Currency transactions and advance considerations notified in the Companies (Indian Accounting Standards) Rules, 2018. Accordingly, the exchange rate for translation of foreign currency transaction; in cases when Company receives or pays advance consideration is earlier of:-

¦ the date of initial recognition of nonmonetary prepayment asset or deferred income liability or

¦ the date that the related item is recognized in the financial statements.

If the transaction is recognized in stages; then a transaction date will be established for each stage.

B. Revenue Recognition

i) Revenue from contract with customers for sale of goods and provision of services

The Company recognizes revenue from contracts with the customers based on five step model defined in IndAS 115. The Company satisfies a performance obligation and recognizes revenue over time, if any of the conditions given in IndAS 115 are satisfied; else revenue is recognized at point in time at which the performance obligation is satisfied. When the Company satisfies a performance obligation by delivering the promised goods or services it creates a contract-based asset on the amount of consideration earned by the performance. Where the amount of consideration received from a customer exceeds the amount of revenue recognized, this gives rise to a contract liability.

Revenue is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates. Revenues are recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue & costs, if applicable, can be measured reliably.

a. Performance Obligation

The Company derives its revenue from selling products and services in Power Transmission Stringing Tools, OPGW (Optical Fibre Ground Wire), OFC cables, ACS (Aluminium Clad Steel Wire), ERS (Emergency Restoration System), and OPGW joint boxes etc.

The Company is required to assess each of its contracts with customers to determine whether performance obligation is satisfied over time or at a point in time in order to determine the appropriate method for recognizing of revenue. The Company recognizes the revenue over time only if it satisfies the criteria given in IndAS 115. Where the criteria as per IndAS 115 are not met, revenue is recognized at a point in time.

I n cases where the Company determines that performance obligation is satisfied at a point in time, revenue is recognized when the control over the goods is transferred to the customer or benefits of the services being provided is received by the customer. The Company considers that the customer has obtained the control of promised goods or services; when the goods have been dispatched/delivered to the destination as per terms of the contract or services has been provided to the customer as per agreed terms and the Company has unconditional right to consideration.

I n cases where the Company determines that performance obligation is satisfied over time, then revenue is recognised when the outcome of a transaction can be estimated reliably by reference to the stage of completion of the transaction (Input Method). The outcome of a transaction can be estimated reliably when all the following conditions are satisfied:

1. The amount of revenue can be measured reliably;

2. I t is probable that the economic benefits associated with the transaction will flow to the Company;

3. The stage of completion of the transaction at the end of the reporting period can be measured reliably; and

4. The costs incurred or to be incurred in respect of the transaction can be measured reliably.

Stage of completion is determined by the proportion of actual costs incurred to-date, to the estimated total costs of the transaction.

b. Transaction Price

The Company is required to determine the transaction price in respect of each of its contracts with customers.

Contract with customers for sale of goods or services are either on a fixed price or on variable price basis.

For allocating the transaction price, the Company measures the revenue in respect of each performance obligation of contract at its relative standalone selling price. The price that is regularly charged for an item when sold separately is the best evidence of its standalone selling price. In making judgment about the standalone selling price, the Company also assesses the impact of any variable consideration in the contract, due to discounts or penalties, the existence of any significant financing component and any noncash consideration in the contract.

iii) I nterest income is accrued on a time basis, by reference to the principal outstanding and effective interest rate applicable.

iv) Dividend income is recognised when the right to receive the payment is established.

C. Employee benefits

i. Short term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

ii. Defined contribution plans

¦ Provident Fund Scheme

The Company makes specified monthly contributions towards employee provident fund directly to the Government under the Employees Provident Fund Act, 1952.

iii. Defined benefit plans

The following post - employment benefit plans are covered under the defined benefit plans:

¦ Gratuity Fund

The Company''s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the Projected Unit Credit Method. When the calculation results in a potential asset for the Company, the recognised asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or

reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Re-measurement of the net defined benefit/ liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling, if any (excluding interest), are recognised immediately in OCI. Net interest expense/(income) on the net defined liability/(assets) is computed by applying the discount rate, used to measure the net defined liability/(asset), to the net defined liability/(asset) at the start of the financial year after taking into account any changes as a result of contribution and benefit payments during the year. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss. When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. The Company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.

Defined contribution plans

Contributions to retirement benefit plans in the form of provident fund, employee state insurance scheme and pension scheme as per regulations are charged as an expense on an accrual basis when employees have rendered the service. The Company has no further payment obligations once the contributions have been paid.

D. Finance income and finance costs

The Company''s finance income and finance costs include:

• interest income;

• interest expense;

• the net gain or loss on financial assets at FVTPL

• exchange differences arising from monetary assets and liabilities

I nterest income or expense is recognised using the effective interest rate method.

E. Grants/ Subsidies

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with.

Where the grant relates to an asset, the cost of the asset is shown at gross value and grant thereon is treated as capital grant. The capital grant will be recognised as income in the statement of profit and loss over the period and in proportion in which depreciation is charged.

Revenue grants are recognised in the statement of profit and loss in the same period as the related cost, which they are intended to compensate, are accounted for.

F. Borrowing cost

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. The Company considers a period of twelve months or more as a substantial period of time. Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

Finance expenses are recognised immediately in the Statement of Profit and Loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company''s policy on borrowing costs.

All other borrowing costs are recognised in the Statement of Profit and Loss in the period in which they are incurred.

G. Taxation

The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

i) Current tax

The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period in the countries where the Company, its branches and jointly controlled operations operate and generate taxable income.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations is subject to interpretations. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities.

ii) 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 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 utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

Deferred tax liabilities are recognised for taxable temporary differences associated with interests in jointly controlled operations except where 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 interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

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.

Deferred tax assets / liabilities in respect of temporary differences which originate and reverse during the tax holiday period are not recognised. Deferred tax assets / liabilities in respect of temporary differences that originate during the tax holiday period but reverse after the tax holiday period are recognised.

H. Inventories

I nventories are measured at the lower of cost and net realizable value. Inventory of scrap is valued at estimated realizable value. The cost of inventories is determined using FIFO method. Cost includes direct materials, labour, other direct cost and manufacturing overheads. Inventories of finished goods also includes applicable taxes.

Net realisable value is the estimated selling price in the ordinary course of business less estimated costs of completion and estimated costs necessary to make the sale.

I. Property, plant and equipment

i) Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.

The cost of an item of property, plant and equipment comprises:

a) its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates.

b) any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

c) the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period.

I ncome and expenses related to the incidental operations, not necessary to bring the item to the location and condition necessary for it to be capable of operating in the manner intended by management, are recognised in profit or loss.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted and depreciated for as separate items (major components) of property, plant and equipment

Any gain or loss on disposal of an item of property, plant and equipment is recognised in statement of profit and loss.

The cost of the property, plant and equipment''s at 1^st April 2021, the Company''s date of transition to IndAS, was determined with reference to its carrying value at that date.

With respect to Ind AS financial the financial year ended 31^st March, 2024, property, plant and equipment had been measured at deemed cost, using the net carrying value as per previous GAAP as at 1^st April, 2022.

Capital work in progress is carried at cost, less any recognised impairment loss. Cost includes purchase price, taxes and duties, labour cost and other directly attributable costs incurred up to the date the asset is ready for its intended use. Such Capital work in progress are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

ii) Subsequent expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to

the Company and the cost of the item can be measured reliably.

iii) Intangible assets

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated impairment losses, if any. Amortization is recognized on a straight-line basis over their estimated useful lives. 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.

Derecognition of intangible assets

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

Depreciation is provided, pro rata to the period of use, based on useful lives specified in Schedule II to the Companies Act, 2013 except in the case where the estimated useful life based on management experience and technical evaluation differs. Depreciation is charged on the Straight-Line method (SLM) in the Company. Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted, if appropriate.

Capital expenditure in respect of which ownership does not vest with the Company is amortized over a period of five years.

Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets. However, when there is no reasonable certainty that ownership will be obtained by the end of the lease term, assets are depreciated over the shorter of the lease term and their useful lives.

Leasehold land is amortised over the period of lease.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the Statement of Profit and Loss.

v) Capital work-in-progress

Capital work-in-progress comprises of assets in the course of construction for production or/ and supply of goods or services or administrative purposes, or for purposes not yet determined, are carried at cost, less any recognised impairment loss. At the point when an asset is operating at management''s intended use, the cost of construction is transferred to the appropriate category of property, plant and equipment. Costs associated with the commissioning of an asset are capitalised where the asset is available for use and commissioning has been completed.

J. Share-based payments:

a) Employees of the Company receives remuneration in the form of share-based payments, whereby employees render services as consideration for equity instruments (equity-settled transactions).

b) The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model.

c) That cost is recognised, together with a corresponding increase in share-based payment (SBP) reserves in equity, over the period in which the performance and/ or service conditions are fulfilled. The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Company''s best estimate of the number of equity instruments that will ultimately vest.

d) When the terms of an equity-settled award are modified, the minimum expense recognised is the

expense had the terms not been modified, if the original terms of the award are met. An additional expense is recognised for any modification that increases the total fair value of the share-based payment transaction or is otherwise beneficial to the employee as measured at the date of modification. Where an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss.

e) The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

K. Impairment

i) Financial assets (other than at fair value)

In accordance with Ind AS 109, the Company uses ''Expected Credit Loss'' (ECL) model, for evaluating impairment of Financial Assets other than those measured at Fair Value Through Profit and Loss (FVTPL).

Expected Credit Losses are measured through a loss allowance at an amount equal to:

• The 12-months expected credit losses (expected cred it losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date), if the credit risk on a financial instrument has not increased significantly; or

• Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument),if the credit risk on a financial instrument has increased significantly.

For trade receivables the Company applies ''simplified approach'' which requires expected lifetime losses to be recognized from initial recognition of the receivables.

The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward-looking estimates are analyzed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

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 90 days or more;

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

- i t 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.

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 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 90 days or more past due.

The gross carrying amount of a financial asset is written off (either partially or in fu ll) 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 writeoff. 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) Non-financial assets

Tangible and Intangible assets

Property, Plant and equipment and intangible assets with finite life are evaluated for recoverability whenever there is an indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. 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 cash generating unit (CGU) to which the asset belongs.

If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized in the statement of profit and loss.

Reversal of impairment loss

Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists.

I mpairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed 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 amortization, if no impairment loss had been recognized directly in other comprehensive income and presented within equity.

L. Leases

The Company has adopted IndAS 116, effective from annual reporting period beginning April 1, 2019 and applied the standard to its existing leases, with the modified retrospective method. This has resulted into recognition of Right of use assets at an amount equal to Lease liability on date of initial application (April 1, 2019).

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Company as a lessee

The Company accounts for each lease component within the contract as a lease separately from nonlease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.

Lease liabilities:

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the lease payments.

The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses in the period in which the event or condition that triggers the payment occurs. Lease payments to be

made under reasonably certain extension options are also included in the measurement of the liability.

The lease payments are discounted using the lessee''s incremental borrowing rate. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. •.

Right-of-use assets:

Right-of-use assets are measured at cost comprising the amount of the initial measurement of lease liability and lease payments made before the commencement date.

Right-of-use assets are depreciated over the lease term on a straight-line basis. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, and lease payments made at or before the commencement date less any lease incentives received.

Short term leases and leases of low value assets:

Payments associated with short-term leases of equipment and all leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise small items of office equipment including IT equipment.

M. Financial Instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.

a) Financial Assets

Financial assets comprises of investments in equity instruments, cash and cash equivalents, loans and other financial assets.

Initial Recognition:

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through Profit or loss, transaction costs that are attributable to the acquisition of financial assets. Purchase or sales of financial assets that requires delivery of assets within a period of time frame established by regulation or convention in the market place are recognized on the trade date, i.e. the date the company committed to purchase or sell the assets.

Subsequent Measurement: i). Financial assets measured at amortized Cost:

Financial assets are subsequently measured at amortized cost if theses financial assets are held within a business whose objective

is to hold theses assets in order to collect contractual cash flows and where contractual terms of financial assets 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):

Financial Assets that are held within a business model whose objective is achieved by both collective contractual cash flows and selling financial assets and the contractual terms of financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding are subsequently measure at FVTOCI are recognized in Other Comprehensive Income.

Equity instruments held for trading are classified as at fair value through profit or loss (FVTPL). For other equity instruments the company classifieds the same as FVTOCI. The classification is made on initial recognition and is irrevocable. Fair Value changes on equity instruments at FVTOCI, excluding dividends are recognized in Other Comprehensive Income (OCI)

iii) . Fair Value through Profit or Loss (FVTPL):

Financial Assets are measured at FVTPL if does not meet the criteria for classification as measured at amortized cost or at FVTOCI. All fair changes are recognized in the Statement of Profit and Loss.

De-recognition of Financial Assets:

Financial Assets are derecognized when the contractual rights to cash flows from the financial assets expire or the financial assets is transferred, and he transfer qualifies for de-recognition. On de-recognition of the financial assets in its entirety, the difference between the carrying amount (measured at the date of de-recognition) and the consideration received (including any new assets obtained less any new liabilities assumed) shall be recognized in the statement of Profit and Loss.

b) Financial Liabilities

The Company''s financial liabilities include following:

o Borrowing from Banks

o Borrowing from Others

o Trade Payables

o Other Financial Liabilities

The company''s financial liabilities are measured at amortized cost.

Initial Recognition and Measurement

Financial liabilities are initially recognized at fair value plus any transaction costs, (if any) which are attributable to acquisition of the financial liabilities.

Subsequent Measurement:

Financial liabilities are subsequently measured at amortised cost using the effective interest rate method.

The Effective Interest Rate Method is a method of calculating the amortised cost of a financial liability and of allocating interest expenses over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including transaction costs and other premiums or discounts) through the expected life of the financial liability.

De-recognition of Financial Liabilities:

Financial liabilities shall be derecognized when, and only when it is extinguished i.e. when the obligation specified in the contract is discharged or cancelled or expires.

c) Offsetting of Financial assets and Financial Liabilities:

Financial assets and Financial Liabilities are offset and the net amount is presented in Balance Sheet when, and only when, the Company has legal right to offset the recognized amounts and intends either to settle on the net basis or to realize the assets and liabilities simultaneously.

d) Reclassification of Financial Instruments:

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are categorized as equity instruments at FVTOCI, and financial assets or liabilities that are specifically designated as FVTPL. For financial assets which are debt instruments, a reclassification is made only if there is a change in business model for managing those assets. Changes to the business model are expected to be very infrequent. The management determines the change in a business model as a results of external of internal changes which are significant to the Company''s Operations. A Change in business occurs when the company either befins or ceases to perform an activity that is significant to its operations. IF the Company reclassifies financial assets, it applies the reclassification prospectively effective from the reclassification date which is the first day of the immediately next reporting

period following the change in business model. The Company does not restate any previously recognized gains, losses (including impairment gains or losses) or interest.

N. Fair Value Measurement

A number of Company''s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair value is the price that would be received on sell of an assets or plaid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either in the principal market for the assets or liabilities or in the absence of a principal market, in the most advantageous market for the assets or liability. The principal market or the most advantageous market must be accessible to the Company.

The fair value of an asset or liability is measured using the assumptions that market participants would use when pricing the assets or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the assets in its highest the best use or by selling it to another market participant that would use the assets in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the Ind As Financial Statements are categorized within the fair value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole. The fair value hierarchy is described as below;

a) Level 1 - unadjusted quoted prices in active markets for identical assets and liabilities.

b) Level 2 - Input other than quoted prices included within Level 1 that are observable for the asset or liabilities, either directly or indirectly.

c) Level 3 - unobservable inputs for the asset or liability.

For assets and liabilities that are recognized in the Ind As Financial Statement at fari value on a recurring basis, the company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risk of the asset or liability and the level of fair value hierarchy.

Fair values have been determined for measurement and / or disclosure purposes based on the following methods. When appliable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that assets or liability.

a) Investment in equity and debt securities

The fair value is determined by reference to their quoted price at the reporting date. In the absence of quoted price, the value of the financial asset is measured using valuation techniques.

d) Trade and other receivables

The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the market rate of interest at the reporting date. However, in respect of such financial instruments, fair value generally approximates the carrying amount due to short term nature of such assets.

c) Non derivative financial liabilities

Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date. For finance leases, the market rate of interest is determined by reference to similar lease agreements.

O. Provision, Contingent Liabilities and Contingent Assets

Provisions are recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre tax rates that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

A provision for onerous contract is recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Company recognizes any impairment loss on the assets associated with the contract.

Contingent liabilities are not recognized in the Ind As Financial Statement but are disclosed in notes. A contingent assets is neither recognized nor disclosed in the Ind As Financial Statements.

P. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

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.

Q. Earnings per share

Basic Earnings per share is calculated by dividing the net profit for the period attributable to the equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to the equity shareholders and the weighted average number of equity shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

R. Cash flows

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of noncash nature and any deferrals or accruals of past or future cash receipts or payments and item of income or expenses associated with investing or financing cash flow. The cash flows from operating, investing and financing activities of the Company are segregated based on available information.

S. Current / non-current classification

An asset is classified as current if:

a) It is expected to be realized or sold or consumed in the Company''s normal operating cycle;

b) It is held primarily for the purpose of trading;

c) It is expected to be realized within twelve months after the reporting period; or

d) It is cash or cash equivalents unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability assets is classified as current if;

a) It is expected to be settled in normal operating cycle;

b) It is held primarily for the purpose of trading;

c) I t is expected to be settled with in the twelve months after the reporting period;

d) It has no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.

The operating cycle is the between acquisition of assets for processing / trading / assembling and their assembling and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

T. Dividends

Final dividend on shares is recorded as a liability on the date of approval by the shareholders and Interim dividend share recorded as a liability on the date of declaration by the Company''s Board of Directors.

U. Critical accounting judgments and key sources of estimation uncertainty

The preparation of Ind As Financial Statements in conformity with Ind AS requires the management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, the disclosures of contingent assets and contingent liabilities at the date of Ind As Financial Statements, income and expense during the period. The estimated and associated assumptions are based on historical experience and other factors that are considered to be relevant. However, uncertainty about these assumptions and estimates could results in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future period.

Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognized in the periods in which the estimates are revised and in future periods which are affected.

In the process of applying the Company''s accounting policies, management has made the following judgments and estimates, which have the most significant effect on the amounts recognized in the Ind As Financial Statements.

The following are areas involving critical estimates:

Estimate:

• Employee benefit plans

• Fair value measurement of financial instruments

• Allowance for uncollectible trade receivables / loans

1) Employee benefit plans

Defined benefit plans and other long-term employee benefits

The present value of obligations under defined benefit plan and other long term employment benefits is determined using actuarial valuations. An actuarial valuation involves making various assumptions= that may differ from actual

development in the future. These include the determination of the discount rate, future salary escalations, attrition rate and mortality rates Due to the complexities involved in the valuation and its long term nature, these obligations are highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. Information about the various estimates and assumptions made in determining present value of defined benefit obligation are disclosed in note 37.

2) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fa ir value is measured using valuation techniques. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions relating to these factors could affect the reported fair value of financial instruments.

3) Allowance for uncollectible trade receivables/ loans

The company has used a practical expedient by computing the expect

1 Significant accounting policies

1.1 Basis of accounting :

a) The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (“GAAP”) under the historical cost convention on an accrual basis. GAAP comprises of mandatory accounting standards as prescribed under section 133 of the Companies Act, 2013 (''the Act'') read with rule 7 of the companies (Account) Rules, 2014, the provision of the Act (to the extent notified).

b) Accounting policies not specifically referred to otherwise are consistent with the Generally Accepted Accounting Principles followed by the Company and Accounting policies have been consistently applied except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.2 Use of estimates

The preparation of financial statements in confirmative with Indian GAAP requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known /materialized.

1.3 Inventories

Inventories are valued at lower of Cost determined on FIFO basis or Net Realizable Value.Valued and Verified by the Management.

1.4 Property, Plant & Equipments, Intengible Assets

a) Fixed assets are stated at cost of acquisition or construction less depreciation. The cost of assets comprises of purchase price and directly attributable cost of bringing the assets to working condition for its intended use including borrowing cost and incidental expenditure during the construction incurred up to the date of commissioning.

b) Capital Work in Progress includes capital items not installed or Building construction not completed and preoperative expenditure related to and incurred during implementation of projects and pending to be allocated.

1.5 Depreciation

i) Depreciation on Tangible Fixed assets is provided on Written Down Value Method. Depriciation is provided based on the useful life of Asset prescribed in Schedule II to the Companies Act, 2013.

ii) Depreciation on addition to fixed assets during the year is provided on pro-rata basis.

iii) Depreciation on Intangible Assets has been provided as per the estimated useful life of the assets as estimated. i.e. 3 years.

1.6 Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

1.7 Revenue Recognisation

Revenue is recognised at accrual basis exclusive of taxes

1.8 Employee Benefits

Post-employment benefit plan:

i) Defined Contribution Plan: Contribution for provident fund are accrued in accordance with applicable statutes and deposited with the Regional Provident Fund Commissioner.

ii) Defined Benefit Plan: The liabilities in respect of gratuity are determined using Projected Unit Credit Method with actuarial valuation carried out as at balance sheet date. Actuarial gains are recognized in full in the profit & loss account for the period in which they occur.

Contribution in respect of Gratuity is made to the Group Gratuity Scheme with Life Insurance Corporation of India. Employee benefits recognized in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost and as reduced by the fair value of respective fund.

Short-term employee benefits:

Short term employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered.

1.9 Foreign Currency Transactions

In accordance with Accounting Standard (AS) 11 on Accounting for the Effects of changes in Foreign Exchange Rates, Transactions in foreign currencies are recognised at the prevailing exchange rates on the transaction date. Realized gains and losses on settlement of foreign currency transactions are recognised in the Profit and Loss Account, Foreign currency assets and liabilities at the year-end are translated at the year-end exchange rates, and the resultant exchange difference is recognised in the Profit and Loss Account.

1.10 Borrowing Cost

Borrowing costs attributable to acquisition, construction or production of qualifying assets are capitalized as part of the cost of that asset, till the asset is ready for use as per Accounting Standard (AS) - 16. Other borrowing costs are recognized as an expense in the year in which these are incurred.

The provision for current tax is based on the assessable profits of the Company computed in accordance with the applicable provisions of the Income Tax Act, 1961. Minimum Alternate Tax (MAT) eligible for set off in subsequent years (as per Tax Laws), is recognized as an asset by way of credit to the profit and loss account.

Deferred Tax resulting from timing difference between book and taxable profit is accounted for using the tax rates and laws that have been enacted as on the Balance Sheet date. The deferred tax asset is recognized only to the extent that there is reasonable certainty that the asset will be realized in future.