Accounting Policies of Antony Waste Handling Cell Ltd. Company

Mar 31, 2025

D Summary of material accounting policy information

(i) Functional and presentation currency

Items included in the standalone financial statements
of the Company are measured using the currency
of the primary economic environment in which the
Company operates (i.e., the “functional currency”).
The standalone financial statements are presented
in INR, which is the functional and presentation
currency of the Company.

(ii) Financial instruments

a. Initial recognition and measurement

The Company recognises financial assets
and liabilities when it becomes a party to
the contractual provisions of the instrument.
Financial assets (except trade receivables)
and financial liabilities are recognised at fair
value on initial recognition. Transaction costs
that are directly attributable to the acquisition
or issue of financial assets and liabilities that
are not at fair value through profit or loss are
added to the fair value on initial recognition.
Regular purchase and sale of financial assets

are recognised on the trade date. Further, trade
receivables are measured at transaction price
on initial recognition.

b. Subsequent measurement

Non derivative financial instruments

(a) Financial assets carried at amortised cost

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

(b) Financial assets at fair value through other
comprehensive income (''FVOCI'')

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

(c) Financial assets at fair value through profit
or loss (''FVTPL'')

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

(d) Financial liabilities

Financial liabilities are subsequently carried
at amortised cost using the effective interest
method. For trade and other payables maturing
within one year from the balance sheet date,
the carrying amounts approximate fair value
due to the short maturity of these instruments.
The Company’s policy is to recognise
transfers into and transfers out of fair
value hierarchy levels as at the end of the
reporting period.

c. De-recognition of financial instruments

The Company derecognises a financial asset
when the contractual right to receive the
cash flows from the financial asset expire or it
transfers the financial asset. A financial liability
is derecognised when the obligation under the
liability is discharged, cancelled or expires.

d. Offsetting financial instruments

Financial assets and liabilities are offset and the
net amount is reported in the balance sheet where
there is a legally enforceable right to offset the
recognised amounts and there is an intention to
settle on a net basis or realise the asset and settle
the liability simultaneously. The legally enforceable
right must not be contingent on future events
and must be enforceable in the normal course of
business and in the event of default, insolvency or
bankruptcy of the group or the counterparty.

(iii) Current versus non-current classification

(i) An asset is considered as current when it is:

a. Expected to be realised or intended
to be sold or consumed in the normal
operating cycle, or

b. Held primarily for the purpose of
trading, or

c. Expected to be realised within twelve
months after the reporting period, or

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

(ii) All other assets are classified as

non-current.

(iii) Liability is considered as current when it is:

a. Expected to be settled in the normal
operating cycle, or

b. Held primarily for the purpose of
trading, or

c. Due to be settled within twelve
months after the reporting period, or

d. There is no unconditional right to
defer the settlement of the liability
for at least twelve months after the
reporting period.

(iv) All other liabilities are classified

as non-current.

(v) Deferred tax assets and liabilities

are classified as non-current assets

and liabilities.

(vi) All assets and liabilities have been
classified as current or non-current as
per the Company''s operating cycle and

other criteria set out in Schedule III to
the Act. Based on the nature of products
and services and the time between the
acquisition of assets for processing
and their realisation in cash and cash
equivalents, the Company has ascertained
its operating cycle as twelve months for
the purpose of current and non-current
classification of assets and liabilities.

(iv) Property, plant and equipment (''PPE'')

PPE are stated at historical cost, less accumulated
depreciation and impairment losses, if any. Historical
costs include expenditure directly attributable to
acquisition which are capitalised until the PPE are
ready for use, as intended by management, including
non refundable taxes. Any trade discount and rebates
are deducted in arriving at the purchase price.

An item of PPE initially recognised is de-recognised
upon disposal or when no future economic benefits
are expected from its use or disposal. Gains or losses
arising from disposals of assets are measured as the
difference between the net disposal proceeds and
the carrying value of the asset on the date of disposal
and are recognised in the standalone statement of
profit and loss, in the period of disposal.

The cost of an item of PPE shall be recognised as an
asset if, and only if:

(a) it is probable that future economic benefits
associated with the item will flow to
the Company; and

(b) the cost of the item can be measured reliably.

Items such as spare parts are recognised as PPE
when they meet the definition of PPE.

The Company depreciates PPE over their estimated
useful lives using the straight-line method (''SLM'').
The estimated useful lives of PPE for the current and
comparative periods are as follows:

In case of certain assets included in above table,
the Company uses useful life different from those
specified in Schedule II of the Act which is duly

supported by technical evaluation of management.
The management believes that these estimated useful
lives are realistic and reflect fair approximation of the
period over which the assets are likely to be used.

Subsequent costs are included in the asset’s
carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that
future economic benefits associated with the item
will flow to the Company and the cost of the item
can be measured reliably. The carrying amount of
any component accounted for as a separate asset
is derecognised when replaced. All other repairs
and maintenance are charged to the standalone
statement of profit and loss during the reporting
period in which they are incurred.

Depreciation methods, estimated useful lives and
residual values are reviewed at each reporting date.
Depreciation on addition to PPE or on disposal of
PPE is calculated pro-rata from the month of such
addition or up to the month of such disposal as the
case may be. The residual values are not more than
5% of the original cost of the asset.

Capital work-in-progress includes PPE under
construction and not ready for intended use as on
the balance sheet date.

(v) Leases

The Company as a lessor

Leases for which the Company is a lessor is classified
as a finance or operating lease. Whenever the terms
of the lease transfer substantially all the risks and
rewards of ownership to the lessee, the contract
is classified as a finance lease. All other leases are
classified as operating leases.

When the Company is an intermediate lessor, it
accounts for its interests in the head lease and the
sublease separately. The sublease is classified as a
finance or operating lease by reference to the ROU
asset arising from the head lease. For operating
leases, rental income is recognised on a straight-line
basis over the term of the relevant lease.

For operating leases, rental income is recognised
on a straight-line basis over the term of the relevant
lease. Contingent rents are recognised as revenue in
the period in which they are earned.

(vi) Impairment of assets

(a) Non-financial assets

Intangible assets, ROU assets and PPE are
evaluated for recoverability whenever events

or changes in circumstances indicate that their
carrying amounts may not be recoverable.
For the purpose of impairment testing, the
recoverable amount (i.e., the higher of the fair
value less cost to sell and the value in use)
is determined on an individual asset basis
unless the asset does not generate cash flows
that are largely independent of those from
other assets. In such cases, the recoverable
amount is determined for the CGU to which
the asset belongs.

If such assets are considered to be impaired, the
impairment to be recognised in the standalone
statement of profit and loss is measured by the
amount by which the carrying value of the assets
exceeds the estimated recoverable amount
of the asset. An impairment loss is reversed
in the standalone statement of profit and loss
if there has been a change in the estimates
used to determine the recoverable amount. The
carrying amount of the asset is increased to its
revised recoverable amount, provided that this
amount does not exceed the carrying amount
that would have been determined (net of any
accumulated amortisation or depreciation) had
no impairment loss been recognised for the
asset in prior years.

(b) Financial assets

The Company assesses at each date of balance
sheet whether a financial asset or a group of
financial assets is impaired. Ind AS 109 ’’Financial
Instruments” requires expected credit losses
to be measured through a loss allowance. The
Company recognises lifetime expected losses
for all trade receivables that do not constitute
a financing component. In determining the loss
allowances for trade receivables, the Company
has used a practical expedient by computing
the expected credit loss allowance for trade
receivables based on a provision matrix. The
provision matrix takes into account historical
credit loss experience and is adjusted for forward¬
looking information. The expected loss allowance
is based on the ageing of the receivables that are
due and allowance rates used in the provision
matrix. For all other financial assets, expected
loss allowance are measured at an amount equal
to the 12-months expected credit losses or at an
amount equal to the lifetime credit losses if the
credit risk on the financial asset has increased
significantly since initial recognition.

When determining whether the credit risk of a
financial asset has increased significantly since

initial recognition, 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, that includes
forward looking information.

The Company calculates impairment allowance
under the simplified approach and do not
perform individual assessment of credit risk for
its financial assets/ specific parties.

For impairment of investment in subsidiaries
and joint venture, refer accounting policy of
“Investment in subsidiaries, associate and
joint venture”.

(vii) Employee benefits

Long-term employee benefits

(i) Defined contribution plan

The Company has defined contribution
plan for post employment benefits in the
form of provident fund and employees’
state insurance. Under the defined
contribution plan, the Company has no
further obligation beyond making the
contributions. Such contributions are
charged to the standalone statement of
profit and loss as incurred.

(ii) Defined benefit plan

The Company has defined benefit plan for
post employment benefits in the form of
gratuity for its employees in India. Liability
for defined benefit plan is provided on
the basis of actuarial valuations, as at
the balance sheet date, carried out by
an independent actuary. The actuarial
valuation method used by independent
actuary for measuring the liability is the
projected unit credit method.

Actuarial gains or losses are recognised
in OCI. Further, the profit or loss does
not include an expected return on plan
assets. Instead net interest recognised
in standalone statement of profit and
loss is calculated by applying the
discount rate used to measure the
defined benefit obligation to the net
defined benefit liability or asset. The
actual return on the plan assets above
or below the discount rate is recognised

as part of remeasurement of net defined
benefit liability or asset through OCI.
Remeasurement comprising of actuarial
gains or losses and return on plan
assets (excluding amounts included in
net interest on the net defined benefit
liability or asset) are not reclassified to
standalone statement of profit and loss in
subsequent periods.

(iii) Other long-term employee benefits

The employees of the Company are also
entitled to other long-term employee
benefits. Liability for such benefits
is provided on the basis of actuarial
valuations, as at the balance sheet date,
carried out by an independent actuary
using the projected unit credit method.
Actuarial gains and loss are recognised in
the standalone statement of profit and loss
during the period in which they arise.

Short-term employee benefits

The undiscounted amount of short-term employee
benefits expected to be paid in exchange for the
services rendered by employees is recognised
in the year during which the employee rendered
the services. These benefits include salary and
performance incentives etc.

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Mar 31, 2024

(b) Summary of material accounting policies

(i) Basis of Preparation

The standalone financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time) and presentation requirements of Division II of Schedule III to the Companies Act, 2013 (Ind AS compliant Schedule III), as applicable to the standalone financial statements.

The standalone financial statements have been prepared on going concern basis in accordance with accounting principles generally accepted in India. Further, the financial statements have been prepared on accrual basis of accounting under the historical cost convention except for certain financial assets and financial liabilities which are measured at fair values and employee benefit plans which are measured using actuarial valuation as explained in the relevant accounting policy.

All the assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013 (‘the Act’). Based on the nature of products and time between the acquisition of assets for processing and their realization in cash or cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current / noncurrent classification of assets and liabilities. Deferred tax assets and liabilities are classified as non-current only.

The Standalone financial statements are presented in Indian Rupee (H) and all values are rounded to the nearest lakhs, except when otherwise indicated.

(ii) Critical accounting estimates and judgements

The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience

and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Examples of such estimates include the useful lives of property, plant and equipment, provision for doubtful debts/ advances, valuation of deferred tax assets, future obligations in respect of retirement benefit plans etc. Differences between actual results and estimates are recognised in the period in which the results are known/materialised.

The said estimates are based on the facts and events that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed.

Estimates, judgments and assumptions are required in particular for:

• Useful lives of property, plant and equipment

Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company’s assets are determined by the management at the time the asset is acquired and reviewed periodically, including at each reporting date.

• Taxes

The Company periodically assesses its liabilities and contingencies related to income taxes for all years open to scrutiny based on latest information available. The Company records its best estimates of the tax liability in the current tax provision. The management believes that they have adequately provided for the probable outcome of these matters.

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits.

• Defined benefit obligation

The cost and present value of the gratuity obligation and compensated absences are determined based on actuarial valuations using the projected unit credit method. An actuarial valuation involves

making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, attrition rate and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

• Share-based payments

Estimating fair value for share-based payments requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. The estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the option, volatility and dividend yield and making assumptions about them.

• Impairment of financial assets

The impairment provision for financial assets disclosed are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

• Impairment of non-financial assets

The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets, net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset.

In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

• Provision

Provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions (excluding defined

benefit plans) are not discounted to its present value and are determined based on best estimate required to settle the obligation as at the reporting date. These are reviewed at each reporting date adjusted to reflect the current best estimates.

• Expected credit loss

The Company applies Expected Credit Losses (“ECL”) model for measurement and recognition of loss allowance on financial assets.

In relation to trade receivable balances, the Company follows ‘simplified approach’ for recognition of impairment loss allowance on the trade receivable balances. The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward looking estimates are analysed.

In case of financial assets other than trade receivables, the Company determines if there has been a significant increase in credit risk of the financial asset since initial recognition. If the credit risk of such assets has not increased significantly, an amount equal to twelve months ECL is measured and recognised as loss allowance. However, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognised as loss allowance.

(iii) Revenue recognition

Mechanical power sweeping and collection and transportation of waste

Revenue from mechanical power sweeping and collection and transportation is recognized when the services have been performed. Revenue is product of swept kilometres of roads/waste tonnage collected to the rates agreed with the customer.

Performance obligation in case of Mechanical power sweeping and collection and transportation of waste is satisfied at a point in time when the actual service is performed i.e. on the basis of swept kilometres of roads/ waste tonnage collected.

Transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer excluding amounts collected on behalf of a third party.

Accrued revenue are classified as Unbilled receivables (only act of invoicing is pending) when there is unconditional right to receive cash, and only passage of time is required, as per contractual terms and is accordingly classified under ‘other financial assets’.

Costs to obtain a contract which are incurred regardless of whether the contract was obtained are charged off in Statement of Profit and Loss immediately in the period in which such costs are incurred.

Interest income:

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.

Dividend income:

Dividend are recognized in Standalone Statement of Profit and Loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of the dividend can be measured reliably.

Royalty income is recognized at agreed rate, in accordance with the terms of the agreement.

Income other than above is recognized as and when due or received, whichever is earlier.

/) Leases

The Company has adopted Ind AS 116, “Leases” with effect from 1 April 2019. The Company assesses at contract inception whether a contract is, or contains, a lease. That is, 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 applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. Lease payments on short-term leases and leases of low-value assets are recognized as an expense in the statement of profit and loss.

Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). 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, initial direct costs incurred, deferred lease components of security deposits and lease payments made at or before the commencement date less any lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognised right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment.

Lease liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. 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 a lease, if the lease term reflects the Company exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognised as expense in the period on which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific

asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

• Company as a lessor

The Company recognises lease payments received under operating lease as income over the lease term on a straight-line basis.

(v) Current and deferred tax

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 adjusted by changes in deferred tax assets and liabilities attributable to deductible and taxable temporary differences.

Deferred income tax is provided using the balance sheet approach on deductible and taxable temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the standalone financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences, unused tax losses and carry forward unused tax credits only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.

Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

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

Current and deferred tax is recognised in statement of profit and loss, except to the extent that it relates to items recognised in other comprehensive income (OCI) or directly in equity. In this case, the tax is also recognised in OCI or directly in equity, respectively.

(vi) Financial instruments Classification

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

- those to be measured subsequently at fair value (either through OCI or through profit or loss), and

- those to be measured subsequently at amortised cost.

The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in statement of profit and loss or OCI. For investments in debt instruments, this will depend on the business model in which the investment is held. The Company reclassifies debt investments when and only when its business model for managing those assets changes.

Measurement

At initial recognition, the Company measures a financial asset (unless it is a trade receivable without a significant financing component) at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in statement of profit and loss. Trade receivable without a significant financing component is initially measured at the transaction price.

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

Subsequent measurement

Financial Assets at Amortised Cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business model with an objective to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding. Interest income from these financial assets is measured using the effective interest rate ("EIR") method. Impairment gains or losses arising on these assets are recognised in the Statement of Profit and Loss.

Financial Assets Measured at Fair Value

Financial assets are measured at fair value through Other Comprehensive Income (''OCI'') if these financial assets are held within a business model with an objective to hold these assets in order to collect contractual cash flows or to sell these financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Movements in the carrying amount are taken through OCI, except for the recognition

of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in the Statement of Profit and Loss.

In respect of equity investments (other than for investment in subsidiaries and associates) which are not held for trading, the Company decides to present subsequent changes in the fair value of such instruments in OCI or in statement of profit and loss. Such an election is made by the Company on an instrument by instrument basis at the time of transition for existing equity instruments/initial recognition for new equity instruments.

Financial asset not measured at amortised cost or at fair value through OCI is carried at FVTPL.

Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables only, the Group applies the simplified approach permitted by Ind AS 109, Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

De-recognition of financial assets A financial asset is derecognised only when

- the Company has transferred the rights to receive cash flows from the financial asset or

- retains the contractual rights to receive the cash flows of the financial asset but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.

Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

Cash and cash equivalents

Cash and cash equivalents for the purpose of the Statement of Cash Flow comprises of the cash on hand

and at bank and current investments with an original maturity of three months or less. Cash and cash equivalents consists of balances with banks which are unrestricted for withdrawal and usage.

Financial liabilities

Initial recognition

Financial liabilities are classified, at initial recognition, as financial liabilities at FVTPL, loans and borrowings and payables, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

Subsequent measurement

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate (‘EIR’) method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings in the Statement of Profit and Loss.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the Statement of Profit and Loss.

De-recognition of financial liabilities

Financial liabilities are de-recognised when the obligation specified in the contract is discharged, cancelled or expired. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as de-recognition of the original liability and recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments which are issued for cash are recorded at the proceeds received, net of direct issue costs. Equity instruments which are issued for consideration other than cash are recorded at fair value of the equity instrument.

Offsetting financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the assets and settle the liabilities simultaneously.

(vii) Financial guarantee contracts

The Company provides certain guarantees in respect of the indebtedness of its subsidiaries. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less, when appropriate, the cumulative amount of income recognised in accordance with the principles of Ind AS 115.

(viii) Property, plant and equipment (including capital work-in-progress) and depreciation

Property, plant and equipment are stated at cost of acquisition inclusive of all attributable cost of bringing the assets to their working condition, net of GST credit, accumulated depreciation and accumulated impairment losses, if any.

Subsequent expenditure related to an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Items of property, plant and equipment that have been retired from active use and are held for disposal are stated at the lower of their net book value and net realisable value and are shown separately in the standalone financial statements. Any expected loss is recognised immediately in the statement of profit and loss.

Losses arising from the retirement of, and gains or losses arising from disposal of property, plant and equipment which are carried at cost are recognised in the statement of profit and loss.

The Company provides pro-rata depreciation on additions and disposals made during the period. Depreciation on property, plant and equipment is provided under the straight-line method over the useful lives of assets prescribed under Schedule II to the Act except in case of assets mentioned below, where useful life is different than those prescribed in Schedule II are used which is based on technical assessment of management.

Residual value is considered as 5% of the original acquisition cost of the assets. The useful lives are reviewed by the management at each financial year-end and revised, if appropriate.

Capital work-in-progress represents expenditure incurred in respect of assets under development and are carried at cost. Cost includes related acquisition expenses, construction cost, borrowing cost capitalized and other direct expenditure.

(ix) Intangibles

Intangible assets are carried at cost less accumulated amortisation and impairment losses, if any. The cost of an intangible asset comprises its purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing authorities), and any directly attributable expenditure on making the asset ready for its intended use.

Identifiable intangible assets are recognised when it is probable that future economic benefits attributed to the asset will flow to the Company and the cost of the asset can be reliably measured.

Expenditure on development eligible for capitalization are carried out as intangible assets under development where such assets are not ready for their intended use.

(x) Asset classified as held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less cost to sell.

An impairment loss is recognised for any initial recognition or subsequent written down value of the assets to the fair value less cost to sell of an asset. A gain is recognised for any subsequent increase in the fair value less cost to sell of an asset but not more than cumulative impairment loss previously recognised.

Non-current assets are not depreciated or amortised while they are classified as held for sale.

(xi) Impairment of non-financial assets

The carrying amount of the non-financial assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal /external factors. An impairment loss is recognised whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. The recoverable amount of the assets (or where applicable, that of the cash generating unit to which the asset belongs) is estimated as the higher of its net selling price and its value in use. Impairment loss is recognised in the statement of profit and loss.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

A previously recognised impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there were no impairment.

(xii) Borrowing costs

Borrowing costs attributable to the acquisition or construction of qualifying assets, as defined in Indian Accounting Standard 23 “Borrowing Costs”, are capitalized as part of the cost of the asset up to the date when the asset is ready for its intended use. Other borrowing costs are expensed as incurred.

(xiii) Employee Benefits

• Short-term employee benefits

Short-term employee benefits such as salaries, wages, performance incentives etc. are recognised as expenses at the undiscounted amounts in the statement of profit and loss of the period in which the related service is rendered. Expenses on nonaccumulating compensated absences is recognised in the period in which the absences occur.

• Post-employment benefits

Defined contribution plan

Contributions to defined contribution schemes such as provident fund and employees’ state insurance (ESIC) are charged as an expense based on the amount of contribution required to be made as and when services are rendered by the employee. The provident fund contribution is made to a government administered fund and charged as an expense to the statement of profit and loss. The above benefits are classified as Defined Contribution Schemes as the Company has no further obligations beyond the monthly contributions.

Defined benefit plan

The Company provides for gratuity which is a defined benefit plan the liabilities of which is determined

based on valuations, as at the balance sheet date, made by an independent actuary using the projected unit credit method. Re-measurement, comprising of actuarial gains and losses, in respect of gratuity are recognised in the OCI, in the period in which they occur. Re-measurement recognised in OCI are not reclassified to the statement of profit and loss in subsequent periods. Past service cost is recognised in the statement of profit and loss in the period of plan amendment or curtailment. The classification of the obligation into current and non-current is as per the actuarial valuation report.

Compensated absences

Accumulated leave which is expected to be utilised within next twelve months, is treated as short-term employee benefit. Re-measurement, comprising of actuarial gains and losses, in respect of leave entitlement are recognised in the statement of profit and loss in the period in which they occur.

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Mar 31, 2023

Significant accounting policies

(i) Basis of Preparation

The Company has prepared its standalone financial
statements to comply in all material respects with the
provisions of the Companies Act, 2013 (“the Act") and rules
framed thereunder. In accordance with the notification
issued by the Ministry of Corporate Affairs, the Company
has adopted Indian Accounting Standards (Ind AS) notified
under the Companies (Indian Accounting Standards)
Rules, 2015 under Section 133 of the Act.

The standalone financial statements have been prepared
on a historical cost convention and accrual basis, except
for the certain financial assets and liabilities that are
measured at fair value.

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,
regardless of whether that price is directly observable or
estimated using another valuation technique. In estimating
the fair value of an asset or a liability, the company takes
into account the characteristics of the asset or liability
if market participants would take those characteristics
into account when pricing the asset or liability at the
measurement date.

All the assets and liabilities have been classified as current
or non- current as per the Company''s normal operating
cycle and other criteria set out in Schedule III to the
Companies Act, 2013. Based on the nature of products and
time between the acquisition of assets for processing and

their realization in cash or cash equivalents, the Company
has ascertained its operating cycle as twelve months for
the purpose of current / non- current classification of
assets and liabilities.

(ii) Critical estimates and judgements

The estimates and judgements used in the preparation
of the financial statements are continuously evaluated
by the Company and are based on historical experience
and various other assumptions and factors (including
expectations of future events) that the Company believes
to be reasonable under the existing circumstances.
Examples of such estimates include the useful lives of
property, plant and equipment, provision for doubtful
debts/ advances, valuation of deferred tax assets, future
obligations in respect of retirement benefit plans etc.
Differences between actual results and estimates are
recognised in the period in which the results are known/
materialised.

The said estimates are based on the facts and events, that
existed as at the reporting date, or that occurred after that
date but provide additional evidence about conditions
existing as at the reporting date.

This note provides an overview of the areas that involved
a higher degree of judgement or complexity, and of items
which are more likely to be materially adjusted due to
estimates and assumptions turning out to be different
than those originally assessed.

• Useful lives of property, plant and equipment

Property, Plant and Equipment represent a significant
proportion of the asset base of the Company. The
charge in respect of periodic depreciation is derived
after determining an estimate of an asset''s expected
useful life and the expected residual value at the end of
its life. The useful lives and residual values of Company''s
assets are determined by the management at the
time the asset is acquired and reviewed periodically,
including at each reporting date.

• Valuation of deferred tax assets

In assessing the realisability of deferred income
tax assets, management considers whether some
portion or all the deferred income tax assets will
not be realized. The ultimate realization of deferred
income tax assets is dependent upon the generation
of future taxable income during the period in which
the temporary differences become deductible.
Management considers the scheduled reversals of
deferred income tax liabilities, projected future taxable

income, and tax planning strategies in making this
assessment. Based on the level of historical taxable
income and projections for future taxable income
over the periods in which the deferred income tax
assets are deductible, management believes that the
Company will realise the benefits of those deductible
differences. The amount of the deferred income
tax assets considered realizable, however, could be
reduced in the near term if estimates of future taxable
income during the carry forward period are reduced.

• Defined benefit obligation

The cost and present value of the gratuity obligation
and compensated absences are determined using
actuarial valuations. An actuarial valuation involves
making various assumptions that may differ from
actual developments in the future. These include
the determination of the discount rate, future salary
increases, attrition rate and mortality rates. Due to
the complexities involved in the valuation and its
long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.

• Share-based payments

Estimating fair value for share-based payments
requires determination of the most appropriate
valuation model, which is dependent on the terms
and conditions of the grant. The estimate also
requires determination of the most appropriate inputs
to the valuation model including the expected life of
the option, volatility and dividend yield and making
assumptions about them.

• Impairment of financial assets

The impairment provision for financial assets disclosed
are based on assumptions about risk of default and
expected loss rates. The Company uses judgement
in making these assumptions and selecting the
inputs to the impairment calculation, based on the
Company''s past history, existing market conditions as
well as forward looking estimates at the end of each
reporting period.

• Impairment of non financial assets

The carrying amount of assets is reviewed at each
balance sheet date if there is any indication of
impairment based on internal/external factors. An
impairment loss is recognized wherever the carrying
amount of an asset exceeds its recoverable amount.

The recoverable amount is the greater of the assets,
net selling price and value in use. In assessing value in
use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that
reflects current market assessments of the time value
of money and risks specific to the asset.

In determining net selling price, recent market
transactions are taken into account, if available. If no
such transactions can be identified, an appropriate
valuation model is used. After impairment,
depreciation is provided on the revised carrying
amount of the asset over its remaining useful life.

• Leases

Ind AS 116 requires lessees to determine the lease term
as the non-cancellable period of a lease adjusted with
any option to extend or terminate the lease, if the use
of such option is reasonably certain. The Company
makes an assessment on the expected lease term on
a lease-by-lease basis and thereby assesses whether
it is reasonably certain that any options to extend or
terminate the contract will be exercised. In evaluating
the lease term, the Company considers factors
such as any significant leasehold improvements
undertaken over the lease term, costs relating to the
termination of the lease and the importance of the
underlying asset to the Company''s operations taking
into account the location of the underlying asset and
the availability of suitable alternatives.

The lease term in future periods is reassessed to ensure
that the lease term reflects the current economic
circumstances. After considering current and future
economic conditions, the Company has concluded
that no changes are required to lease period relating
to the existing lease contracts.

(iii) Revenue recognition

Mechanical power sweeping and collection and
transportation of waste

Revenue from mechanical power sweeping and collection
and transportation is recognized when the services have
been performed. Revenue is product of swept kilometers
of roads/waste tonnage collected to the rates fixed in the
agreement by the customer.

Performance obligation in case of Mechanical power
sweeping and collection and transportation of waste
is satisfied at a point in time when the actual service is
performed i.e on the basis of swept kilometers of roads/
waste tonnage collected.

Transaction price is the amount of consideration to
which the Company expects to be entitled in exchange
for transferring good or service to a customer excluding
amounts collected on behalf of a third party.

Accrued revenue are classified as Unbilled receivables (only
act of invoicing is pending) when there is unconditional
right to receive cash, and only passage of time is required,
as per contractual terms and is accordingly classified
under ''other financial assets''.

Unearned (“contract liability") is recognised when there
are billings in excess of revenues.

Costs to obtain a contract which are incurred regardless
of whether the contract was obtained are charged-off in
Statement of Profit and Loss immediately in the period in
which such costs are incurred.

Interest income:

Interest income from a financial asset is recognised when
it is probable that the economic benefits will flow to the
Company and the amount of income can be measured
reliably. Interest income is accrued on a time basis, by
reference to the principal outstanding and at the effective
interest rate applicable, which is the rate that exactly
discounts estimated future cash receipts through the
expected life of the financial asset to that asset''s net
carrying amount on initial recognition.

Dividend income:

Dividend are recognized in Standalone Statement of
Profit and Loss only when the right to receive payment
is established, it is probable that the economic benefits
associated with the dividend will flow to the Company,
and the amount of the dividend can be measured reliably.

(iv) Leases

The Company has adopted Ind AS 116, “Leases" with effect
from 1 April 2019. The Company assesses at contract
inception whether a contract is, or contains, a lease. That
is, 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 applies a single recognition and
measurement approach for all leases, except for
short-term leases and leases of low-value assets. The
Company recognises lease liabilities to make lease
payments and right-of-use assets representing the
right to use the underlying assets.

Right-of use assets

The Company recognises right-of-use assets at the
commencement date of the lease (i.e., the date the
underlying asset is available for use). 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, initial direct costs
incurred, deferred lease components of security
deposits and lease payments made at or before
the commencement date less any lease incentives
received. Unless the Group is reasonably certain to
obtain ownership of the leased asset at the end of
the lease term, the recognised right-of-use assets are
depreciated on a straight-line basis over the shorter
of its estimated useful life and the lease term. Right-of
use assets are subject to impairment.

Lease liabilities

At the commencement date of the lease, the Company
recognises lease liabilities measured at the present
value of lease payments to be made over the lease
term. 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
a lease, if the lease term reflects the Company
exercising the option to terminate. The variable lease
payments that do not depend on an index or a rate
are recognised as expense in the period on which the
event or condition that triggers the payment occurs.

In calculating the present value of lease payments,
the Company uses the incremental borrowing rate
at the lease commencement date if the interest rate
implicit in the lease is not readily determinable. After
the commencement date, the amount of lease liabilities
is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the
carrying amount of lease liabilities is remeasured if there
is a modification, a change in the lease term, a change
in the in-substance fixed lease payments or a change in
the assessment to purchase the underlying asset.

The determination of whether an arrangement is
(or contains) a lease is based on the substance of

the arrangement at the inception of the lease. The
arrangement is, or contains, a lease if fulfilment of the
arrangement is dependent on the use of a specific
asset or assets and the arrangement conveys a right
to use the asset or assets, even if that right is not
explicitly specified in an arrangement.

Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition
exemption to its short-term leases of restaurant and
equipment (i.e., those leases that have a lease term of
12 months or less from the commencement date and
do not contain a purchase option). It also applies the
lease of low-value assets recognition exemption to
leases of office equipment''s that are low value. Lease
payments on short-term leases and leases of low-
value assets are recognized as expense in statement
of profit and loss.

• Company as a lessor

At the inception of the leases, the Company classifies
each of its leases as either an operating lease or
a finance lease. The Company recognises lease
payments received under operating lease as income
over the lease term on a straight line basis.

(v) Current and deferred tax

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 adjusted by changes in
deferred tax assets and liabilities attributable to deductible
and taxable temporary differences.

Deferred income tax is provided using the balance
sheet approach on deductible and taxable temporary
differences arising between the tax bases of assets and
liabilities and their carrying amounts in the standalone
financial statements. Deferred income tax is determined
using tax rates (and laws) that have been enacted or
substantially enacted by the end of the reporting period
and are expected to apply when the related deferred
income tax asset is realised or the deferred income tax
liability is settled.

Deferred tax assets are recognised for all deductible
temporary differences, unused tax losses and carry
forward unused tax credits only if it is probable that
future taxable amounts will be available to utilize those
temporary differences and losses.

The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that it

is no longer probable that sufficient taxable profit will be
available to allow all or part of the deferred tax asset to be
utilised. Unrecognised deferred tax assets are re-assessed
at each reporting date and are recognised to the extent
that it has become probable that future taxable profits will
allow the deferred tax asset to be recovered.

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

Current and deferred tax is recognised in statement of
profit and loss, except to the extent that it relates to items
recognised in other comprehensive income (OCI) or
directly in equity. In this case, the tax is also recognised in
OCI or directly in equity, respectively.

Deferred tax assets include Minimum Alternate Tax (MAT)
paid in accordance with the tax laws in India which is likely
to give future economic benefit in the form of availability
of setoff against future income tax liability. Accordingly,
MAT is recognised as deferred tax assets in the balance
sheet when the assets can be measured reliably, and it is
probable that the future economic benefit associated with
the asset will be realised.

(vi) Financial instruments

Classification

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

- those to be measured subsequently at fair value
(either through OCI or through profit or loss), and

- those measured at amortised cost.

The classification depends on the Company''s business
model for managing the financial assets and the
contractual terms of the cash flows.

For assets measured at fair value, gains and losses will
either be recorded in statement of profit and loss or OCI.
For investments in debt instruments, this will depend
on the business model in which the investment is held.
The Company reclassifies debt investments when and
only when its business model for managing those assets
changes.

At initial recognition, the Company measures a financial
asset at its fair value plus, in the case of a financial asset not
at fair value through profit or loss, transaction costs that
are directly attributable to the acquisition of the financial
asset. Transaction costs of financial assets carried at fair
value through profit or loss are expensed in statement of
profit and loss.

Financial assets with embedded derivatives are considered
in their entirety when determining whether their cash
flows are solely payment of principal and interest.

Measurement of debt instruments

Subsequent measurement of debt instruments depends
on the Company''s business model for managing the asset
and the cash flow characteristics of the asset. There are
three measurement categories into which the Company
classifies its debt instruments:

- Amortised cost: Assets that are held for collection
of contractual cash flows where those cash flows
represent solely payments of principal and interest
are measured at amortised cost. A gain or loss on a
debt investment that is subsequently measured at
amortised cost and is not part of a hedging relationship
is recognised in statement of profit and loss, when the
asset is derecognised or impaired. Interest income
from these financial assets is included in finance
income using the effective interest rate method.

- Fair value through other comprehensive income
(FVOCI): Assets that are held for collection of
contractual cash flows and for selling the financial
assets, where the assets'' cash flows represent solely
payments of principal and interest, are measured
at FVOCI. Movements in the carrying amount are
taken through OCI, except for the recognition
of impairment gains or losses, interest revenue
and foreign exchange gains and losses which are
recognised in statement of profit and loss. When the
financial asset is derecognised, the cumulative gain or
loss previously recognised in OCI is reclassified from
equity to statement of profit and loss. Interest income
from these financial assets is included in other income
using the effective interest rate method.

- Fair value through profit or loss: Assets that do not
meet the criteria for amortised cost or FVOCI are
measured at fair value through profit or loss. A gain
or loss on a debt investment that is subsequently

measured at fair value through profit or loss and is
not part of a hedging relationship is recognised in
statement of profit and loss and presented net in the
statement of profit and loss in the period in which it
arises. Interest income from these financial assets is
included in other income.

Measurement of equity instruments

All equity investments in the scope of Ind AS 109, Financial
Instruments, are measured at fair value. For equity
instruments, the Company may make an irrevocable
election to present the subsequent fair value changes
in Other Comprehensive Income (OCI). The Company
makes such election on an instrument-by-instrument
basis. The classification is made on initial recognition and
is irrevocable. There is no recycling of the amounts from
OCI to profit or loss, even on sale of investment.

Equity instruments included within the FVTPL (fair value
through profit and loss) category are measured at fair
value with all changes in fair value recognised in the profit
or loss.

Impairment of financial assets

The Company assesses on a forward looking basis the
expected credit losses associated with its assets carried
at amortised cost and FVOCI debt instruments. The
impairment methodology applied depends on whether
there has been a significant increase in credit risk. For
trade receivables only, the Group applies the simplified
approach permitted by Ind AS 109, Financial Instruments,
which requires expected lifetime losses to be recognised
from initial recognition of the receivables.

De-recognition of financial assets

A financial asset is derecognised only when

- the Company has transferred the rights to receive
cash flows from the financial asset or

- retains the contractual rights to receive the cash
flows of the financial asset but assumes a contractual
obligation to pay the cash flows to one or more
recipients.

Where the entity has transferred an asset, the Company
evaluates whether it has transferred substantially all risks
and rewards of ownership of the financial asset. In such
cases, the financial asset is derecognised. Where the entity
has not transferred substantially all risks and rewards of
ownership of the financial asset, the financial asset is not
derecognised.

Where the entity has neither transferred a financial asset
nor retains substantially all risks and rewards of ownership
of the financial asset, the financial asset is derecognised
if the Company has not retained control of the financial
asset. Where the Company retains control of the financial
asset, the asset is continued to be recognised to the extent
of continuing involvement in the financial asset.

Cash and cash equivalents

Cash and cash equivalents for the purpose of the Statement
of Cash Flow comprise of the cash on hand and at bank
and current investments with an original maturity of three
months or less. Cash and cash equivalents consists of
balances with banks which are unrestricted for withdrawal
and usage.

Interest income from financial assets

Interest income from debt instruments is recognised using
the effective interest rate method. The effective interest
rate is the rate that exactly discounts estimated future
cash receipts through the expected life of the financial
asset to the gross carrying amount of a financial asset.
When calculating the effective interest rate, the Company
estimates the expected cash flows by considering all the
contractual terms of the financial instrument (for example,
prepayment, extension, call and similar options) but does
not consider the expected credit losses.

(vii) Property, plant and equipment (including depreciation)

Property, plant and equipment are stated at cost of
acquisition inclusive of all attributable cost of bringing
the assets to their working condition, net of GST credit,
accumulated depreciation and accumulated impairment
losses, if any.

Subsequent expenditure related to an item of tangible
asset are added to its book value only if they increase
the future benefits from the existing asset beyond its
previously assessed standard of performance.

Items of property, plant and equipment that have been
retired from active use and are held for disposal are stated
at the lower of their net book value and net realisable
value and are shown separately in the standalone financial
statements. Any expected loss is recognised immediately
in the statement of profit and loss.

Losses arising from the retirement of, and gains or losses
arising from disposal of property, plant and equipment
which are carried at cost are recognised in the statement
of profit and loss.

The Company provides pro-rata depreciation on additions
and disposals made during the period. Depreciation
on property, plant and equipment is provided under
the straight-line method over the useful lives of assets
prescribed under Schedule II to the Act except in case of
Building, Plant and Equipment and Furniture and fixtures,
where useful life is different than those prescribed
in Schedule II are used which is based on technical
assessment of management.

(viii) Intangibles

Intangible assets are carried at cost less accumulated
amortisation and impairment losses, if any. The cost of an
intangible asset comprises its purchase price, including
any import duties and other taxes (other than those
subsequently recoverable from the taxing authorities),
and any directly attributable expenditure on making the
asset ready for its intended use.

Identifiable intangible assets are recognised when it is
probable that future economic benefits attributed to the
asset will flow to the Company and the cost of the asset
can be reliably measured.

Expenditure on development eligible for capitalization
are carried as intangible assets under development where
such assets are not ready for their intended use.

(ix) Asset classified as held for sale

Non-current assets are classified as held for sale if their
carrying amount will be recovered principally through a
sale transaction rather than through continuing use and a
sale is considered highly probable. They are measured at
the lower of their carrying amount and fair value less cost
to sell.

An impairment loss is recognised for any initial recognition
or subsequent written down of the assets to the fair value
less cost to sell of an asset. A gain is recognised for any
subsequent increase in the fair value less cost to sell of
an asset but not in excess of cumulative impairment loss
previously recognised.

Non-current assets are not depreciated or amortised
while they are classified as held for sale.

Assets held for sale are presented separately from the
other assets in the standalone balance sheet.

(x) Impairment of non-financial assets

The carrying amount of the non-financial assets are
reviewed at each Balance Sheet date if there is any
indication of impairment based on internal /external
factors. An impairment loss is recognised whenever the
carrying amount of an asset or a cash generating unit
exceeds its recoverable amount. The recoverable amount
of the assets (or where applicable, that of the cash
generating unit to which the asset belongs) is estimated
as the higher of its net selling price and its value in use.
Impairment loss is recognised in the statement of profit
and loss.

After impairment, depreciation is provided on the revised
carrying amount of the asset over its remaining useful life.

A previously recognised impairment loss is increased
or reversed depending on changes in circumstances.
However, the carrying value after reversal is not increased
beyond the carrying value that would have prevailed by
charging usual depreciation if there were no impairment.

(xi) Borrowings and other financial liabilities

Borrowings and other financial liabilities are initially
recognised at fair value (net of transaction costs incurred).
Difference between the fair value and the transaction
proceeds on initial recognition is recognised as an asset /
liability based on the underlying reason for the difference.

Subsequently all financial liabilities are measured at
amortised cost using the effective interest rate method.

Borrowings are derecognised from the balance sheet
when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying
amount of a financial liability that has been extinguished
or transferred to another party and the consideration paid,
including any non-cash assets transferred or liabilities
assumed, is recognised in statement of profit and loss.
The gain / loss is recognised in other equity in case of
transaction with shareholders.

(xii) Borrowing costs

Borrowing costs attributable to the acquisition or
construction of qualifying assets, as defined in Indian
Accounting Standard 23 “Borrowing Costs", are capitalized
as part of the cost of the asset up to the date when the
asset is ready for its intended use. Other borrowing costs
are expensed as incurred.

(xiii) Employee Benefits

• Short term employee benefits

Short-term employee benefits such as salaries,
wages, performance incentives etc. are recognised
as expenses at the undiscounted amounts in the
statement of profit and loss of the period in which
the related service is rendered. Expenses on non¬
accumulating compensated absences is recognised
in the period in which the absences occur.

• Post-employment benefits
Defined contribution plan

Contributions to defined contribution schemes such
as provident fund and employees'' state insurance
(ESIC) are charged as an expense based on the
amount of contribution required to be made as and
when services are rendered by the employees''s
provident fund contribution is made to a government
administered fund and charged as an expense to
the statement of profit and loss. The above benefits
are classified as Defined Contribution Schemes as
the Company has no further obligations beyond the
monthly contributions.

Defined benefit plan

The Company provides for gratuity which is a defined
benefit plan the liabilities of which is determined
based on valuations, as at the balance sheet date,
made by an independent actuary using the projected
unit credit method. Re-measurement, comprising of
actuarial gains and losses, in respect of gratuity are

recognised in the OCI, in the period in which they
occur. Re-measurement recognised in OCI are not
reclassified to the statement of profit and loss in
subsequent periods. Past service cost is recognised in
the statement of profit and loss in the period of plan
amendment or curtailment. The classification of the
obligation into current and non-current is as per the
actuarial valuation report.

Compensated absences

Accumulated leave which is expected to be utilised
within next twelve months, is treated as short-term
employee benefit. Re-measurement, comprising
of actuarial gains and losses, in respect of leave
entitlement are recognised in the statement of profit
and loss in the period in which they occur.