Accounting Policies of Decipher Labs Ltd. Company

Mar 31, 2024

2. Material Accounting Policies

This note provides a list of the significant accounting policies adopted in the preparation of the financial statements.
These policies have been consistently applied to all the years presented, unless otherwise stated.

a) Statement of Compliance

The financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) notified under section
133 of Companies Act, 2013 ("the Act") read along with the Companies (Indian Accounting Standards) Rules, 2015
as amended by the Companies (Indian Accounting Standards) Amendment Rules, 2016 and Companies (Indian
Accounting Standards) Amendment Rules as amended, the relevant provisions of the Companies Act, 2013 (''the
Act’) and guidelines issued by the Securities and Exchange Board of India (SEBI), as applicable.

b) Basis of preparation

The financial statements have been prepared under the historical cost convention with the exception of certain assets
and liabilities that are required to be carried at fair values by Ind AS. 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.

c) Use of estimates and critical accounting judgements

In preparation of the financial statements, the Company makes judgements, estimates and assumptions about the
carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and the
associated assumptions are based on historical experience and other factors that are considered to be relevant.
Actual results may differ from these estimates.

The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised and future periods affected.

Significant judgements and estimates relating to the carrying values of assets and liabilities include useful lives of
property, plant and equipment and intangible assets, impairment of property, plant and equipment, intangible
assets and investments, provision for employee benefits and other provisions, recoverability of deferred tax assets,
commitments and contingencies.

d) Revenue Recognition

i) Revenue from contract with customers

Revenue is recognised when the performance obligations have been satisfied, which is once control of the goods
is transferred from the Company to the customer.

Revenue related to the sale of goods is recognised when the product is delivered to the destination specified by
the customer, and the customer has gained control through their ability to direct the use of and obtain substantially
all the benefits from the asset.

Revenue is measured based on consideration specified in the contract with a customer which is measured at the fair
value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates
and excludes amounts collected on behalf of third parties.

ii) Other income

Dividend income is recognised when the shareholder''s right to receive the income is established.

Interest income is recognized on time proportion basis taking into account the amount outstanding and the rate
applicable.

e) Income tax
Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted, at the reporting date in the countries where the Company operates and generates taxable income.

Current income tax relating to items recognised outside profit or loss is recognised in outside profit or loss (either
in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying
transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns
with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions
where appropriate.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are
recognised for all taxable temporary differences.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits
and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will
be available against which the deductible temporary differences, and the carry forward of unused tax credits and
unused tax losses can be utilized.

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 measured at the tax rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted
at the reporting date. Deferred tax items are recognised in correlation to the underlying transaction either in OCI
or directly in equity. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists
to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and
the same taxation authority.

f) Impairment of assets

Property, plant and equipment and intangible assets are tested for impairment annually whenever events or changes
in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for
the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the
higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely
independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets
other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of

each reporting period.

g) Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand,
deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities
of three months or less that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.

h) Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using effective
interest method, less provision for impairment.

i) Inventories

Raw Materials, Fuel, Stores & Spares and Packing Materials

Valued at lower of cost and net realizable value (NRV). These items are considered to be realizable at cost, if the
finished products, in which they are intended for use, are expected to be sold at or above cost. Cost is determined
on weighted average basis.

Work-in-Progress (WIP) and Finished Goods

Valued at lower of cost and NRV. Cost of Finished Goods and WIP includes cost of raw materials, cost of conversion
and other costs incurred in bringing the inventories to their present location and condition. Cost of inventories is
computed on weighted average basis.

j) Other financial assets
i) Classification

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

• those to be measured subsequently at fair value (either through other comprehensive income, or through profit or
loss), and

• those measured at amortised cost.

The classification depends on the entity''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 or loss or other
comprehensive income. For investments in debt instruments, this will depend on the business model in which the
investment is held. For investments in equity instruments, this will depend on whether the Company has made an
irrevocable election at the time of initial recognition to account for equity investment at fair value through other
comprehensive income.

The Company reclassifies debt investments when and only when its business model for managing those assets
changes.

ii) Measurement

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
profit or loss.

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.

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 fair value through other comprehensive income (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 profit and loss. When the financial asset is derecognised,
the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised
in other gains/(losses). 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 debt investment that is subsequently measured at fair value
through profit or loss is recognised in profit or 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.

Equity instruments:

The Company subsequently measures all equity investments at fair value. Where the company''s management has
elected to present fair value gains and losses on equity investments in other comprehensive income, there is no
subsequent reclassification of fair value gains and losses to profit or loss. Dividends from such investments are
recognised in profit or loss as other income when the Company''s right to receive payments is established.

Changes in the fair value of financial assets at fair value through profit or loss are recognised in the other income.
Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported
separately from other changes in fair value.

iii) 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. Note 20 details how the Company determines whether there has been a
significant increase in credit risk.

For trade receivables only, the Company 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.

iv) Derecognition of financial assets

A financial asset is derecognized only when

• The Company has transferred the rights to receive cash flow from the financial asset or

• retains the contractual rights to receive the cash flows of the financial assets, but assumes a contractual obligation
to pay 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 derecognized. Where the entity
has not transferred substantially all risks and rewards of ownership of the financial asset is not derecognized.

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.

k) 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 recognized amounts and there is an intention to settle on a net basis or realize 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 Company or the counterparty.

l) Property, plant and equipment

Property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that
is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognized 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 separate asset is
derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting
period in which they are incurred.

Depreciation/Amortisation methods, estimated useful lives and residual value

Depreciation is calculated using the straight-line basis at the rates arrived at based on the useful lives prescribed in
Schedule II of the Companies Act, 2013. The company follows the policy of charging depreciation on pro-rata
basis on the assets acquired or disposed off during the year. Leasehold assets are amortised over the period of lease.

The residual values are not more than 5% of the original cost of the asset. The assets’ residual values and useful
lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset’s carrying amount is
written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated
recoverable amount.

Gains or losses on disposal are determined by comparing proceeds with carrying amount.

m) Trade and other payables

These amounts represent liabilities for goods and services provided to the company prior to the end of financial year
which are unpaid. The amounts are unsecured are presented as current liabilities unless payment is not due within
12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at
amortized cost using the effective interest method.

n) Borrowings

Borrowings are initially recognized at fair value, net of transaction cost incurred. Borrowings are subsequently
measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Fees
paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is
probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down
occurs. To the extent there is no evidence that it is probable that some or all the facility will be drawn down,
the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which
it relates.

Borrowings are removed 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 recognized in profit or loss.

Where the terms of a financial liability are renegotiated and the entity issues equity instruments to a creditor to
extinguish all or part of the liability (debt for equity swap), a gain or loss is recognized in profit or loss, which is
measured as the difference between the carrying amount of the financial liability and the fair value of the equity
instrument issued.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of
the liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a
long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes
payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed,
after the reporting period and before the approval of financial statements for issue, not to demand payment as
consequence of the breach.

o) Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production
of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for
its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready
for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing cost eligible for capitalization.

Other borrowings costs are expensed in the period in which they are incurred.

---

Mar 31, 2015

A) Basis of Preparation of financial statements:

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India ("Indian GAAP") to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules 2014, and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on accrual basis.

b) Fixed Assets

The fixed assets are stated at cost of acquisition and subsequent improvements thereto including taxes duties, freight and other incidental expenses related to acquisition and installation.

c) Depreciation

Depreciation on fixed assets is provided as per Schedule II of Companies Act, 2013 taking into account the useful life.

d) Deferred tax liability / Asset To provide and recognize Deferred tax on timing differences between taxable income and accounting income subject to consideration of prudence.

e) Inventories

Inventories are valued at lower of the cost or net realizable value.

f) Revenue Recognition

Sale of goods is recognized at the point of despatch of finished goods to the customers.

---

Mar 31, 2014

A) Basis of preparation

The financial statements have been prepared in accordance with the applicable accounting standards and are based on historical cost convention.

b) Fixed Assets

The fixed assets are stated at cost of acquisition and subsequent improvements thereto including taxes, duties, freight and other incidental expenses related to acquisition and installation.

c) Depreciation

Depreciation on fixed assets is provided on Straight Line Method on prorata basis at the rates prescribed in schedule XIV of the Companies Act, 1956 as amended from time to time on the original cost of all the Assets including the existing assets.

d) Deferred tax liability / Asset

To provide and recognize Deferred tax on timing differences between taxable income and accounting income subject to consideration of prudence.

e) Inventories

Inventories are valued at lower of the cost or net realizable value.

f) Revenue Recognition

Sale of goods is recognized at the point of despatch of finished goods to the customers. Sales are inclusive.

g) Miscellaneous expenditure

To ammortize preliminary expenses equally over a period of 10 years.

h) Public Issue expense

To write off public issue expenses in ten equal installments from the year following the year of Public Issue.

i) Investments

Quoted and unquoted long term and current investments are stated at cost. Provision for diminution in value of long term investments is made only if such a decline is other than temporary in the opinion of the management.

---

Mar 31, 2013

A) Basis of preparation

The financial statements have been prepared in accordance with the applicable accounting standards and are based on historical cost convention.

b) Fixed Assets

The fixed assets are stated at cost of acquisition and subsequent improvements thereto including taxes, duties, freight and other incidental expenses related to acquisition and installation.

c) Depreciation

Depreciation on fixed assets is provided on Straint Line Method on pro-rata basis at the rates prescribed in schedule XIV of the Companies Act, 1956 as amended from time to time on the original cost of all the Assets including the existing assets.

d) Deferred tax liability / Asset

To provide and recognize Deferred tax on timing differences between taxable income and accounting income subject to consideration of prudence.

e) Inventories

Inventories are valued at lower of the cost or net realizable value.

f) Revenue Recognition

Sale of goods is recognized at the point of despatch of finished goods to the customers. Sales are inclusive.

g) Miscellaneous expenditure

To ammortize preliminary expenses equally over a period of 10 years.

h) Public Issue expense

To write off public issue expenses in ten equal installments from the year following the year of Public Issue

i) Investments

Quoted and unquoted long term and current investments are stated at cost. Provision for diminution in value of long term investments is made only if such a decline is other than temporary in the opinion of the management.

---

Mar 31, 2012

A) Basis of preparation

The financial statements have been prepared in accordance with the applicable accounting standards and are based on historical coat convention.

b) Fixed Assets

The fixed assets are stated at cost of acquisition and subsequent improvements thereto including taxes, duties, freight and other incidental expenses related to acquisition and installation.

c) Depreciation

Depreciation on fixed assets is provided on Strain Line Method on pro-rata basis at the rates prescribed in schedule XIV of the Companies Act, 1956 as amended from time to time on the original cost of all the Assets including the existing assets

d) Deferred tax liability / Asset

To provide and recognize Deferred tax on timing differences between taxable income and accounting income subject to consideration Of prudence

e) Inventories

Inventories art; valued at lower of the cost or ne! realizable value,

f) Revenue Recognition

Gale of goods is recognized at the point of dispatch of finished goods to the customers Safes are inclusive,

g) Miscellaneous expenditure

To amortize preliminary expenses equally over a" parted ST IS years.

h) Public Issue expense

To write off public issue expenses in ten equal installments from the year fallowing the year of Public Issue

i) investments

Quoted and unquoted long term and current investments are, stated at cost. Provision for diminution in value of long term investments is made only if such a decline is other than temporary in the opinion of the management,

j) Public Issue expense

To write off public issue expenses in ten equal installments from the year of following the year of Public Issue.

---

Mar 31, 2010

I. BASIS OF ACCOUNTING:The Financial Statements have been prepared in accordance with the applicable accounting standards and are based on historical cost convention.

ii. FIXED ASSETS:Fixed Assets are stated at cost of acquisition and subsequent improvements thereto including taxes, duties, freight and other incidental expenses related to acquisition and installation.

iii. DEPRECIATION:Depreciation on fixed assets is provided on Straight Line Method on pro-rata basis at the rates precribed in Schedule XIV of the Companies Act, 1956 as amended from time to time on the original cost of all the Assets including the existing assets.

iv. INVENTORIES: Inventories are valued at lower of the cost or net realisable value.

v. DEFFERED TAX LIABILITY/ASSET : To provide and recognize deffered tax on timing differences between taxable income and accounting income subject to consideration of prudence.

vi. REVENUE RECOGNITION: Sale of goods is recognised at the point of dispatch of finished goods to customers. Sales are inclusive of sales tax.

vii. MISCELLANEOUS EXPENDITURE: To ammortise: Preliminary expenses equally over a period of 10 years.

viii. PUBLIC ISSUE EXPENSES:To write off Public issue expenses in ten equal instalments from the year following the year of Public Issue.