Accounting Policies of Novelix Pharmaceuticals Ltd. Company

Mar 31, 2025

1.3 Summary of Significant Accounting Policies

a) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one
entity and a financial liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of
financial assets not recorded at fair value through profit or loss, transaction costs
that are attributable to the acquisition of the financial asset. Purchases or sales of
financial assets that require delivery of assets within a time frame established by
regulation or convention in the market place (e.g., regular way trades) are
recognized on the trade date, i.e., the date that the Company commits to purchase
or sell the asset. Trade receivables are recognized initially at the amount of
consideration that is unconditional unless they contain significant financing
components, in which case they are recognized at fair value. The Company''s trade
receivables do not contain any significant financing component and hence are
measured at the transaction price measured under Ind AS 115 "Revenue from
Contracts with Customers".

Subsequent Measurement

For purposes of subsequent measurement, financial assets are classified in four
categories:

• Debt instruments at amortized cost;

• Debt instruments at FVTOCI;

• Debt instruments, derivatives and equity instruments at FVTPL; and

• Equity instruments measured at FVTOCI.

Debt instruments at amortized cost A "debt instrument" is measured at the
amortized cost if both the following conditions are met:

(a) the asset is held within a business model whose objective is to hold assets for
collecting contractual cash flows; and

b. contractual terms of the asset give rise on specified dates to cash flows that are
solely payments of principal and interest ("SPPI") on the principal amount
outstanding.

After initial measurement, such financial assets are subsequently measured at
amortized cost using the effective interest rate method and are subject to
impairment.

Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the effective interest rate.

Interest income from these financial assets is included in finance income using the
effective interest rate method. Any gain or loss arising on derecognition is
recognized directly in statement of profit and loss and presented in other income.
The losses arising from impairment are recognized in the statement of profit and
loss. This category generally applies to trade and other receivables.

Debt instrument at FVTOCI

A "debt instrument" is classified as at the FVTOCI if both of the following criteria
are met:

a) the objective of the business model is achieved both by collecting contractual
cash flows and selling the financial assets; and

b) the asset''s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as
well as at each reporting date at fair value. Fair value movements are recognized
in the OCI. However, the Company recognizes interest income, impairment losses
and reversals and foreign exchange gain or loss in the statement of profit and loss.
On derecognition of the asset, cumulative gain or loss previously recognized in
OCI is reclassified to the statement of profit and loss. Interest earned while
holding a FVTOCI debt instrument is reported as interest income using the
effective interest rate method.

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which
does not meet the criteria for categorization as at amortized cost or as FVTOCI, is
classified as at FVTPL. In addition, the Company may elect to designate a debt
instrument, which otherwise meets amortized cost or FVTOCI criteria, as at
FVTPL. However, such election is allowed only if doing so reduces or eliminates a
measurement or recognition inconsistency (referred to as an "accounting
mismatch").

Debt instruments included within the FVTPL category are measured at fair value
with all changes recognized in the statement of profit and loss.

Equity investments

All equity investments within the scope of Ind AS 109 are measured at fair value.
Equity instruments which are held for trading and contingent consideration
recognized by an acquirer in a business combination to which Ind AS 103 applies
are classified as at FVTPL. For all other equity instruments, the Company may
make an irrevocable election to present in OCI subsequent changes in the fair
value. The Company makes such election on an instrument-by-instrument basis.
The classification is made upon initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair
value changes on the instrument, excluding dividends, are recognized in the OCI.
There is no recycling of the amounts from OCI to the statement of profit and loss,
even on sale of investment.

However, on sale the Company may transfer the cumulative gain or loss within
equity. Equity investments designated as FVTOCI are not subject to impairment
assessment. Equity instruments included within the FVTPL category are measured
at fair value with all changes recognized in the statement of profit and loss.

Investments in subsidiaries and joint venture

Investments in subsidiaries and joint venture are carried at cost less accumulated
impairment losses, if any. Where an indication of impairment exists, the carrying
amount of the investment is assessed and written down immediately to its
recoverable amount. On disposal of investments in subsidiaries and joint venture,
the difference between net disposal proceeds and the carrying amounts are
recognized in the statement of profit and loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group
of similar financial assets) is primarily derecognized (i.e. removed from the
Company''s balance sheet) when:

• the rights to receive cash flows from the asset have expired; or

• Both (1) the Company has transferred its rights to receive cash flows from the
asset or has assumed an obligation to pay the received cash flows in full without
material delay to a third party under a "pass-through" arrangements and (2)
either (a) the Company has transferred substantially all the risks and rewards of
the asset, or (b) the Company has neither transferred nor retained substantially all
the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset
or has entered into a pass-through arrangement, it evaluates if and to what extent
it has retained the risks and rewards of ownership. When it has neither transferred
nor retained substantially all of the risks and rewards of the asset, nor transferred
control of the asset, the Company continues to recognize the transferred asset to
the extent of the Company''s continuing involvement. In that case, the Company
also recognizes an associated liability. The transferred asset and the associated
liability are measured on a basis that reflects the rights and obligations that the
Company has retained.

Impairment of trade receivables and other financial assets

In accordance with Ind AS 109, the Company applies the expected credit loss
("ECL") model for measurement and recognition of impairment loss on trade
receivables or any contractual right to receive cash or another financial asset. For
this purpose, the Company follows a "simplified approach" for recognition of
impairment loss allowance on the trade receivable balances. The application of
this simplified approach does not require the Company to track changes in credit
risk. Rather, it recognizes 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.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at
FVTPL, loans and borrowings, payables, or as derivatives designated as hedging
instruments in an effective hedge, as appropriate. All financial liabilities are
recognized initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs. The Company''s financial

liabilities include trade and other payables, loans and borrowings including bank
overdrafts and derivative financial instruments.

Subsequent Measurement

The measurement of financial liabilities depends on their classification, as
described below

Financial liabilities at FVTPL

Financial liabilities at FVTPL include financial liabilities held for trading and
financial liabilities designated upon initial recognition as at FVTPL. Financial
liabilities are classified as held for trading if they are incurred for the purpose of
repurchasing in the near term. This category also includes derivative financial
instruments entered into by the Company that are not designated as hedging
instruments in hedge relationships as defined by Ind AS 109.

Separated embedded derivatives are also classified as held for trading unless they
are designated as effective hedging instruments. Gains or losses on liabilities held
for trading are recognized in the statement of profit and loss.

Financial liabilities designated upon initial recognition at FVTPL are designated as
such at the initial date of recognition, and only if the criteria in Ind AS 109 are
satisfied. For liabilities designated as FVTPL, fair value gains or losses attributable
to changes in own credit risk are recognized in OCI. These gains or losses are not
subsequently transferred to the statement of profit and loss.

However, the Company may transfer the cumulative gain or loss within equity.
All other changes in fair value of such liability are recognized in the statement of
profit and loss. The Company has not designated any financial liability as FVTPL.

Loans and Borrowings

Borrowings are initially recognized at fair value, net of transaction costs incurred.

Borrowings are subsequently measured at amortized cost. Any difference between
the proceeds (net of transaction costs) and the redemption amount is recognized in
the statement of profit and loss over the period of the borrowings using the
effective interest method. After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortized cost using the effective
interest rate method. Gains and losses are recognized in the statement of profit

and loss when the liabilities are derecognized as well as through the effective
interest rate amortization process. Amortized cost is calculated by taking into
account any discount or premium on acquisition and fees or costs that are an
integral part of the effective interest rate. The effective interest rate amortization is
included as finance costs in the statement of profit and loss.

Derecognition

A financial liability is derecognized when the obligation under the liability is
discharged or cancelled or expires. 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 the derecognition of the original liability and the recognition of a new
liability. The difference in the respective carrying amounts is recognized in the
statement of profit and loss.

Derivative financial instruments

The Company uses derivative financial instruments such as foreign exchange
forward contracts, option contracts and swap contracts to mitigate its risk of
changes in foreign currency exchange rates. The Company also uses non¬
derivative financial instruments as part of its foreign currency exposure risk
mitigation strategy. Derivatives are classified as financial assets when the fair
value is positive and as financial liabilities when the fair value is negative.

Hedges of highly probable forecasted transactions

The Company classifies its derivative financial instruments that hedge foreign
currency risk associated with highly probable forecasted transactions as cash flow
hedges and measures them at fair value. The effective portion of such cash flow
hedges is recorded in the Company''s hedging reserve as a component of equity
and re-classified to the statement of profit and loss as part of the hedged item in
the period corresponding to the occurrence of the forecasted transactions. The
ineffective portion of such cash flow hedges is recorded in the statement of profit
and loss as finance costs immediately. The Company also designates certain non¬
derivative financial liabilities, such as foreign currency borrowings from banks, as
hedging instruments for hedge of foreign currency risk associated with highly
probable forecasted transactions. Accordingly, the Company applies cash flow
hedge accounting touch relationships.

Re measurement gain or loss on such non-derivative financial liabilities is
recorded in the Company''s hedging reserve as a component of equity and
reclassified to the statement of profit and loss as part of the hedged item in the
period corresponding to the occurrence of the forecasted transactions. If the
hedging instrument no longer meets the criteria for hedge accounting, expires or is
sold, terminated or exercised, then hedge accounting is discontinued
prospectively. The cumulative gain or loss previously recognized in OCI, remains
there until the forecasted transaction occurs. If the forecasted transaction is no
longer expected to occur, then the balance in OCI is recognized immediately in the
statement of profit and loss.

Hedges of recognized Assets and Liabilities

Changes in the fair value of derivative contracts that economically hedge
monetary assets and liabilities in foreign currencies, and for which no hedge
accounting is applied, are recognized in the statement of profit and loss. The
changes in fair value of such derivative contracts, as well as the foreign exchange
gains and losses relating to the monetary items, are recognized in the statement of
profit and loss. If the hedged item is derecognized, the unamortized fair value is
recognized immediately in the statement of profit and loss.

Hedges of changes in the interest rates

Consistent with its risk management policy, the Company uses interest rate swaps
to mitigate the risk of changes in interest rates. The Company does not use them
for trading or speculative purposes.

Cash and Cash equivalents

Cash and cash equivalents consist of cash on hand, demand deposits and short¬
term, highly liquid investments that are readily convertible into known amounts
of cash and which are subject to insignificant risk of changes in value. For this
purpose, "short-term" means investments having original maturities of three
months or less from the date of investment.

Bank overdrafts that are repayable on demand form an integral part of the
Company''s cash management and are included as a component of cash and cash
equivalents for the purpose of the statement of cash flows.

b) Business combinations and goodwill

Business combinations are accounted for using the acquisition method regardless
of whether equity instruments or other assets are acquired. The acquisition date is
the date on which control is transferred to the acquirer. Judgement is applied in
determining the acquisition date and determining whether control is transferred
from one party to another. Control exists when the Company is exposed to, or has
rights to variable returns from its involvement with the entity and has the ability
to affect those returns through power over the entity. In assessing control,
potential voting rights are considered only if the rights are substantive.

The Company determines that it has acquired a business when the acquired set of
activities and assets include an input and a substantive process that together
significantly contribute to the ability to create outputs. The acquired process is
considered substantive if it is critical to the ability to continue producing outputs,
and the inputs acquired include an organized workforce with the necessary skills,
knowledge, or experience to perform that process or it significantly contributes to
the ability to continue producing outputs and is considered unique or scarce or
cannot be replaced without significant cost, eff ort, or delay in the ability to
continue producing outputs.

The consideration transferred for the acquisition of a subsidiary is comprised of:

• fair values of the assets transferred;

• liabilities incurred to the former owners of the acquired business;

• equity interests issued by the Company;

• fair value of any asset or liability resulting from a contingent consideration
arrangement; and

• fair value of any pre-existing equity interest in the subsidiary. At the acquisition
date, the identifiable assets acquired and liabilities and contingent liabilities
assumed are, with limited exceptions, measured initially at their fair values. For
each business combination, the Company elects whether to measure the
noncontrolling interests in the acquiree at fair value or at the proportionate share
of the acquiree''s identifiable net assets.

Acquisition-related costs are expensed as incurred. If the business combination is
achieved in stages, the acquisition date carrying value of the acquirer''s previously
held equity interest in the acquiree is re-measured to fair value at the acquisition
date. Any gains or losses arising from such re-measurement are recognized in the
statement of profit and loss.

Where settlement of any part of cash consideration is deferred, the amounts
payable in the future are discounted to their present value as at the date of
exchange. The discount rate used is the entity''s incremental borrowing rate, being
the rate at which a similar borrowing could be obtained from an independent
financier under comparable terms and conditions. Contingent consideration is
classified either as equity or a financial liability. Contingent consideration
classified as equity is not re-measured and its subsequent settlement is accounted
for within equity. Amounts classified as a financial liability are subsequently
remeasured to fair value, with changes in fair value recognized in the statement of
profit and loss.

Goodwill is initially measured at cost, being the excess of the aggregate of:

• the consideration transferred;

• the amount of any non-controlling interest in the acquired entity; and

• the acquisition-date fair value of any previous equity interest in the acquired
entity over the fair value of the net identifiable assets acquired. If the fair value of
the net assets acquired is in excess of the aggregate consideration transferred, the
Company re-assesses whether it has correctly identified all of the assets acquired
and all of the liabilities assumed and reviews the procedures used to measure the
amounts to be recognized at the acquisition date. If the reassessment still results in
an excess of the fair value of net assets acquired over the aggregate consideration
transferred, then the gain is recognized in OCI and accumulated in equity as
capital reserve. However, if there is no clear evidence of bargain purchase, the
entity recognizes the gain directly in equity as capital reserve, without routing the
same through OCI. After initial recognition, goodwill is measured at cost less any
accumulated impairment losses. For the purpose of impairment testing, goodwill
acquired in a business combination is, from the acquisition date, allocated to each
of the Group''s cash generating units that are expected to benefit from the
combination, irrespective of whether other assets or liabilities of the acquiree are
assigned to those units.

b) Property, plant and equipment

Depreciation

Depreciation is recognized in the statement of profit and loss on a straight-line
basis over the estimated useful lives of property, plant and equipment. Land is not
depreciated but subject to impairment. Depreciation methods, useful lives and
residual values are reviewed at each reporting date and any changes are
considered prospectively.

Schedule II to the Companies Act, 2013 ("Schedule") prescribes the useful lives for
various classes of tangible assets. For certain class of assets, based on the technical
evaluation and assessment, the Company believes that the useful lives adopted by
it best represent the period over which an asset is expected to be available for use.
Accordingly, for these assets, the useful lives estimated by the Company are
different from those prescribed in the Schedule.

c) Intangible Assets

Intangible assets other than acquired in a business combination are measured at
cost at the date of acquisition. Following initial recognition, intangible assets are
carried at cost less any accumulated amortization and accumulated impairment
losses, if any. Research costs are expensed as incurred. Internally generated
intangible asset arising from development activity is recognized at cost on
demonstration of its technical feasibility, the intention and ability of the company
to complete, use or sell it, only if, it is probable that the asset would generate
future economic benefit and the expenditure attributable to the said assets during
its development can be measured reliably.

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

d) Leases

Company as a lessee

The Company assesses at contract inception whether a contract is or contains a
lease, which applies if the contract conveys the right to control the use of the

identified asset for a period of time in exchange for consideration. The Company
recognizes a right-of use asset at the commencement date of the lease, i.e. the date
the underlying asset is available for use. Assets and liabilities arising from a lease
are initially measured on a present value basis. Lease liabilities include the net
present value of the following lease payments to be made over the lease term:

• fixed payments (including in-substance fixed payments), less any lease
incentives receivable

• variable lease payment that are based on an index or a rate, initially measured
using the index or rate as at the commencement date

• amounts expected to be payable by the Company under residual value
guarantees

• the exercise price of a purchase option if the Company is reasonably certain to
exercise that option, and

• payments of penalties for terminating the lease, if the lease term reflects the
Company exercising that option.

The lease payments are discounted using the interest rate implicit in the lease. If
that rate cannot be readily determined, which is generally the case for leases in the
Company, then the lessee''s incremental borrowing rate is used. Such borrowing
rate is calculated as the rate that the individual lessee would have to pay to
borrow the funds necessary to obtain an asset of similar value to the right-of-use
asset in a similar economic environment with similar terms, security and
conditions. The Company''s lease liabilities are included in borrowings. Lease
payments are allocated between principal and interest cost. The interest cost is
charged to statement of profit and loss over the lease period so as to produce a
constant periodic rate of interest on the remaining balance of the liability for each
period.

Right-of-use assets are measured at cost less accumulated depreciation and
accumulated impairment comprised of the following:

• the amount of the initial measurement of lease liability

• any lease payments made at or before the commencement date less any lease
incentives received

• any initial direct costs, and

• restoration costs.

Right-of-use assets are generally depreciated over the shorter of the asset''s useful
life and the lease term on a straight-line basis. Payments associated with short¬
term leases of equipment and vehicles and all leases of low-value assets are
recognized on a straight-line basis as an expense in the statement of profit and
loss. Short-term leases are leases with a lease term of 12 months or less. Low-value
assets comprise IT equipment and small items of office furniture.

The right-of-use assets are initially recognized on the balance sheet at cost, which
is calculated as the amount of the initial measurement of the corresponding lease
liability, adjusted for any lease payments made at or prior to the commencement
date of the lease, any lease incentive received and any initial direct costs incurred
by the Company.

Company as a lessor

At the inception of the lease the Company classifies each of its leases as either an
operating lease or a finance lease. The Company recognizes lease payments
received under operating leases as income on a straight- line basis over the lease
term. In case of a finance lease, finance income is recognized over the lease term
based on a pattern reflecting a constant periodic rate of return on the lessor''s net
investment in the lease. When the Company is an intermediate lessor it accounts
for its interests in the head lease and the sub-lease separately. It assesses the lease
classification of a sub-lease with reference to the right-of-use asset arising from the
head lease, not with reference to the underlying asset. If a head lease is a short
term lease to which the Company applies the exemption described above, then it
classifies the sub-lease as an 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. If an
arrangement contains lease and non-lease components, the Company applies Ind
AS 115 "Revenue from Contracts with Customers" to allocate the consideration in
the contract.

e) Inventories

Inventories are valued at the lower of cost and net realizable value. Inventories
consist of raw materials, stores and spares, work-in-progress and finished goods
and are measured at the lower of cost and net realizable value.

The cost of all categories of inventories is based on the weighted average method.
Cost includes expenditures incurred in acquiring the inventories, production or
conversion costs and other costs incurred in bringing them to their existing
location and condition. In the case of finished goods and work-in-progress, cost
includes an appropriate share of overheads based on normal operating capacity.

Stores and spares consists of packing materials, engineering spares (such as
machinery spare parts) and consumables (such as lubricants, cotton waste and
oils), which are used in operating machines or consumed as indirect materials in
the manufacturing process.

Net realizable value is the estimated selling price in the ordinary course of
business, less the estimated costs of completion and selling expenses. The factors
that the Company considers in determining the provision for slow moving,
obsolete and other non-saleable inventory include estimated shelf life, planned
product discontinuances, price changes, ageing of inventory and introduction of
competitive new products, to the extent each of these factors impact the
Company''s business and markets. The Company considers all these factors and
adjusts the inventory provision to reflect its actual experience on a periodic basis.

f) Impairment

Non-financial assets

The carrying amounts of the Company''s non-financial assets, other than
inventories and deferred tax assets are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such indication
exists, then the asset''s recoverable amount is estimated. For goodwill and
intangible assets that have indefinite lives or that are not yet available for use, an
impairment test is performed each year at 31 March 2025.

The recoverable amount of an asset or cash-generating unit (as defined below) is
the greater of its value in use and its fair value less costs to sell. 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 the risks specific to the asset or the cash-generating unit. For the
purpose of impairment testing, assets are grouped together into the smallest
group of assets that generate cash inflows from continuing use that are largely
independent of the cash inflows of other assets or groups of assets (the "cash¬
generating unit").

The goodwill acquired in a business combination is, for the purpose of
impairment testing, allocated to cash-generating units that are expected to benefit
from the synergies of the combination. An impairment loss is recognized in the
statement of profit and loss if the estimated recoverable amount of an asset or its
cash-generating unit is lower than its carrying amount. Impairment losses
recognized in respect of cash-generating units are allocated first to reduce the
carrying amount of any goodwill allocated to the units and then to reduce the
carrying amount of the other assets in the unit on a pro-rata basis.

An impairment loss in respect of goodwill is not reversed. In respect of other
assets, impairment losses recognized in prior periods are assessed at each
reporting date for any indications that the loss has decreased or no longer exists.
An impairment loss is reversed if there has been a change in the estimates used to
determine the recoverable amount. An impairment loss is reversed only to the
extent that the asset''s carrying amount does not exceed its recoverable amount,
nor exceed the carrying amount that would have been determined, net of
depreciation or amortization, if no impairment loss had been recognized.
Goodwill that forms part of the carrying amount of an investment

in joint venture is not recognized separately, and therefore is not tested for
impairment separately. Instead, the entire amount of the investment in joint
venture is tested for impairment as a single asset when there is objective evidence
that the investment in joint venture may be impaired.

g) Employee Benefits

Short-term employee benefits

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

Defined contribution plans

The Company''s contributions to defined contribution plans are charged to the
statement of profit and loss as and when the services are received from the
employees.

Defined benefit plans

The liability in respect of defined benefit plans and other post-employment
benefits is calculated using the projected unit credit method consistent with the
advice of qualified actuaries. The present value of the defined benefit obligation is
determined by discounting the estimated future cash outflows using interest rates
of high-quality corporate bonds that are denominated in the currency in which the
benefits will be paid, and that have terms to maturity approximating to the terms
of the related defined benefit obligation. In countries where there is no deep
market in such bonds, the market interest rates on government bonds are used.

The current service cost of the defined benefit plan, recognized in the statement of
profit and loss in employee benefit expense, reflects the increase in the defined
benefit obligation resulting from employee service in the current year, benefit
changes, curtailments and settlements. Past service costs are recognized
immediately in the statement of profit and loss.

The net interest cost is calculated by applying the discount rate to the net balance
of the defined benefit obligation and the fair value of plan assets. This cost is
included in employee benefit expense in the statement of profit and loss. Actuarial
gains and losses arising from experience adjustments and changes in actuarial
assumptions for defined benefit obligation and plan assets are recognized in OCI
in the period in which they arise.

When the benefits under a plan are changed or when a plan is curtailed, the
resulting change in benefit that relates to past service or the gain or loss on
curtailment is recognized immediately in the statement of profit and loss. The
Company recognizes gains or losses on the settlement of a defined benefit plan
obligation when the settlement occurs.

Termination benefits

Termination benefits are recognized as an expense in the statement of profit and
loss when the Company is demonstrably committed, without realistic possibility
of withdrawal, to a formal detailed plan to either terminate employment before
the normal retirement date, or to provide termination benefits as a result of an
offer made to encourage voluntary redundancy. Termination benefits for
voluntary redundancies are recognized as an expense in the statement of profit
and loss if the Company has made an off er encouraging voluntary redundancy, it
is probable that the off er will be accepted, and the number of acceptances can be
estimated reliably.

Other long-term employee benefits

The Company''s net obligation in respect of other long-term employee benefits is
the amount of future benefit that employees have earned in return for their service
in the current and previous periods. That benefit is discounted to determine its
present value. Re-measurements are recognized in the statement of profit and loss
in the period in which they arise.

Compensated absences

The Company''s current policies permit certain categories of its employees to
accumulate and carry forward a portion of their unutilized compensated absences
and utilize them in future periods or receive cash in lieu thereof in accordance
with the terms of such policies. The Company measures the expected cost of
accumulating compensated absences as the additional amount that the Company
incurs as a result of the unused entitlement that has accumulated at the reporting
date. Such measurement is based on actuarial valuation as at the reporting date
carried out by a qualified actuary.

h) Share Based Payments

Equity settled share-based payment transactions

The grant date fair value of options granted to employees is recognized as an
employee benefit expense, in the statement of profit and loss, with a
corresponding increase in equity, over the period that the employees become
unconditionally entitled to the options. The amount recognized as an expense is
adjusted to reflect the number of awards for which the related service and
performance conditions are expected to be met, such that the amount ultimately
recognized is based on the number of awards that meet the related service and
performance conditions at the vesting date. The expense is recorded for each
separately vesting portion of the award as if the award was, in substance, multiple
awards. The increase in equity recognized in connection with share-based
payment transaction is presented as a separate component in equity under "share-
based payment reserve". The amount recognized as an expense is adjusted to
reflect the actual number of stock options that vest.

Cash settled share-based payment transactions

The fair value of the amount payable to employees in respect of share-based
payment transactions which are settled in cash is recognized as an expense, with a
corresponding increase in liabilities, over the period during which the employees
become unconditionally entitled to payment. The liability is re- measured at each
reporting date and at the settlement date based on the fair value of the share-based
payment transaction. Any changes in the liability are recognized in the statement
of profit and loss.

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Mar 31, 2024

1.3 Summary of Significant Accounting Policies

a) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and
a financial liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets
not recorded at fair value through profit or loss, transaction costs that are attributable to the
acquisition of the financial asset. Purchases or sales of financial assets that require delivery
of assets within a time frame established by regulation or convention in the market place
(e.g., regular way trades) are recognised on the trade date, i.e., the date that the Company
commits to purchase or sell the asset. Trade receivables are reco.gnised initially at the
amount of consideration that is unconditional unless they contain significant financing
components, in which case they are recognised at fair value. The Company''s trade
receivables do not contain any significant financing component and hence are measured at
the transaction price measured under Ind AS 115 “Revenue from Contracts with
Customers”.

Subsequent Measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

• Debt instruments at amortised cost;

• Debt instruments at FVTOCI;

• Debt instruments, derivatives and equity instruments at FVTPL; and

• Equity instruments measured at FVTOCI.

Debt instruments at amortised cost

A “debt instrument” is measured at the amortised cost if both the following conditions are
met:

a) the asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows; and

b) contractual terms of the asset give rise on specified dates to cash flows that are solely
payments of principal and interest (“SPPI”) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at
amortised cost using the effective interest rate method and are subject to impairment.
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 effective interest rate.
Interest income from these financial assets is included in finance income using the
effective interest rate method. Any gain or loss arising on derecognition is recognised
directly in statement of profit and loss and presented in other income. The losses
arising from impairment are recognised in the statement of profit and loss. This
category generally applies to trade and other receivables.

Debt instrument at FVTOCI

A “debt instrument” is classified as at the FVTOCI if both of the following criteria are met:

a) the objective of the business model is achieved both by collecting contractual cash
flows and selling the financial assets; and

b) the asset''s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as
at each reporting date at fair value. Fair value movements are recognised in the OCI.
However, the Company recognises interest income, impairment losses and reversals
and foreign exchange gain or loss in the statement of profit and loss. On derecognition
of the asset, cumulative gain or loss previously recognised in OCI is reclassified to the
statement of profit and loss. Interest earned while holding a FVTOCI debt instrument is
reported as interest income using the effective interest rate method.

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not
meet the criteria for categorisation as at amortised cost or as FVTOCI, is classified as at
FVTPL. In addition, the Company may elect to designate a debt instrument, which otherwise
meets amortised cost or FVTOCI criteria, as at FVTPL. However, such election is allowed
only if doing so reduces or eliminates a measurement or recognition inconsistency (referred
to as an “accounting mismatch”).

Debt instruments included within the FVTPL category are measured at fair value with all
changes recognised in the statement of profit and loss.

Equity investments

All equity investments within the scope of Ind AS 109 are measured at fair value. Equity
instruments which are held for trading and contingent consideration recognised by an
acquirer in a business combination to which Ind AS 103 applies are classified as at FVTPL.
For all other equity instruments, the Company may make an irrevocable election to present
in OCI subsequent changes in the fair value. The Company makes such election on an
instrument-by-instrument basis. The classification is made upon initial recognition and is
irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value
changes on the instrument, excluding dividends, are recognised in the OCI. There is no
recycling of the amounts from OCI to the statement of profit and loss, even on sale of
investment.

However, on sale the Company may transfer the cumulative gain or loss within equity. Equity

investments designated as FVTOCI are not subject to impairment assessment.

Equity instruments included within the FVTPL category are measured at fair value with all
changes recognised in the statement of profit and loss.

Investments in subsidiaries and joint venture:

Investments in subsidiaries and joint venture are carried at cost less accumulated
impairment losses, if any. Where an indication of impairment exists, the carrying amount of
the investment is assessed and written down immediately to its recoverable amount. On
disposal of investments in subsidiaries and joint venture, the difference between net
disposal proceeds and the carrying amounts are recognised in the statement of profit and
loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is primarily derecognised (i.e. removed from the Company''s balance
sheet) when:

• the rights to receive cash flows from the asset have expired; or

• Both (1) the Company has transferred its rights to receive cash flows from the asset or
has assumed an obligation to pay the received cash flows in full without material delay
to a third party under a “pass-through” arrangements and (2) either (a) the Company
has transferred substantially all the risks and rewards of the asset, or (b) the Company
has neither transferred nor retained substantially all the risks and rewards of the asset,
but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has
entered into a pass-through arrangement, it evaluates if and to what extent it has retained
the risks and rewards of ownership. When it has neither transferred nor retained
substantially all of the risks and rewards of the asset, nor transferred control of the asset, the
Company continues to recognise the transferred asset to the extent of the Company''s
continuing involvement. In that case, the Company also recognises an associated liability.
The transferred asset and the associated liability are measured on a basis that reflects the
rights and obligations that the Company has retained.

Impairment of trade receivables and other financial assets

In accordance with Ind AS 109, the Company applies the expected credit loss (“ECL”) model
for measurement and recognition of impairment loss on trade receivables or any contractual
right to receive cash or another financial asset. For this purpose, the Company follows a
“simplified approach” for recognition of impairment loss allowance on the trade receivable
balances. The application of this 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.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at FVTPL, loans
and borrowings, payables, or as derivatives designated as hedging instruments in an
effective hedge, 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. The Company''s financial liabilities include trade and other payables,
loans and borrowings including bank overdrafts and derivative financial instruments.

Subsequent Measurement

The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at FVTPL

Financial liabilities at FVTPL include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at FVTPL. Financial liabilities are classified
as held for trading if they are incurred for the purpose of repurchasing in the near term. This
category also includes derivative financial instruments entered into by the Company that are
not designated as hedging instruments in hedge relationships as defined by Ind AS 109.
Separated embedded derivatives are also classified as held for trading unless they are
designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the statement of profit and
loss.

Financial liabilities designated upon initial recognition at FVTPL are designated as such at
the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities
designated as FVTPL, fair value gains or losses attributable to changes in own credit risk are
recognised in OCI. These gains or losses are not subsequently transferred to the statement
of profit and loss.

However, the Company may transfer the cumulative gain or loss within equity. All other
changes in fair value of such liability are recognised in the statement of profit and loss. The
Company has not designated any financial liability as FVTPL.

Loans and Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred.
Borrowings are subsequently measured at amortised cost. Any difference between the
proceeds (net of transaction costs) and the redemption amount is recognised in the
statement of profit and loss over the period of the borrowings using the effective interest
method. After initial recognition, interest-bearing loans and borrowings are subsequently
measured at amortised cost using the effective interest rate method. Gains and losses are
recognised in the statement of profit and loss when the liabilities are derecognised as well as
through the effective interest rate amortisation process. 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 effective interest rate. The effective interest rate amortisation is included
as finance costs in the statement of profit and loss.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or
cancelled or expires. 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 the derecognition of
the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognised in the statement of profit and loss.

Derivative financial instruments

The Company uses derivative financial instruments such as foreign exchange forward
contracts, option contracts and swap contracts to mitigate its risk of changes in foreign
currency exchange rates. The Company also uses non-derivative financial instruments as
part of its foreign currency exposure risk mitigation strategy. Derivatives are classified as
financial assets when the fair value is positive and as financial liabilities when the fair value is
negative.

Hedges of highly probable forecasted transactions

The Company classifies its derivative financial instruments that hedge foreign currency risk
associated with highly probable forecasted transactions as cash flow hedges and measures
them at fair value. The effective portion of such cash flow hedges is recorded in the
Company''s hedging reserve as a component of equity and re-classified to the statement of
profit and loss as part of the hedged item in the period corresponding to the occurrence of
the forecasted transactions. The ineffective portion of such cash flow hedges is recorded in
the statement of profit and loss as finance costs immediately. The Company also designates
certain non-derivative financial liabilities, such as foreign currency borrowings from banks,
as hedging instruments for hedge of foreign currency risk associated with highly probable
forecasted transactions. Accordingly, the Company applies cash flow hedge accounting to
such relationships. Remeasurement gain or loss on such non-derivative financial liabilities
is recorded in the Company''s hedging reserve as a component of equity and reclassified to
the statement of profit and loss as part of the hedged item in the period corresponding to the
occurrence of the forecasted transactions.

If the hedging instrument no longer meets the criteria for hedge accounting, expires or is
sold, terminated or exercised, then hedge accounting is discontinued prospectively. The
cumulative gain or loss previously recognised in OCI, remains there until the forecasted
transaction occurs. If the forecasted transaction is no longer expected to occur, then the
balance in OCI is recognised immediately in the statement of profit and loss.

Hedges of recognised Assets and Liabilities

Changes in the fair value of derivative contracts that economically hedge monetary assets
and liabilities in foreign currencies, and for which no hedge accounting is applied, are
recognised in the statement of profit and loss. The changes in fair value of such derivative
contracts, as well as the foreign exchange gains and losses relating to the monetary items,
are recognised in the statement of profit and loss. If the hedged item is derecognised, the
unamortised fair value is recognised immediately in the statement of profit and loss.

Hedges of changes in the interest rates

Consistent with its risk management policy, the Company uses interest rate swaps to
mitigate the risk of changes in interest rates. The Company does not use them for trading or
speculative purposes.

Cash and Cash equivalents

Cash and cash equivalents consist of cash on hand, demand deposits and short-term,
highly liquid investments that are readily convertible into known amounts of cash and which
are subject to insignificant risk of changes in value. For this purpose, “short-term” means
investments having original maturities of three months or less from the date of investment.
Bank overdrafts that are repayable on demand form an integral part of the Company''s cash
management and are included as a component of cash and cash equivalents for the
purpose of the statement of cash flows.

b) Business combinations and goodwill

Business combinations are accounted for using the acquisition method regardless of
whether equity instruments or other assets are acquired. The acquisition date is the
date on which control is transferred to the acquirer. Judgement is applied in
determining the acquisition date and determining whether control is transferred from
one party to another. Control exists when the Company is exposed to, or has rights to
variable returns from its involvement with the entity and has the ability to affect those
returns through power over the entity. In assessing control, potential voting rights are
considered only if the rights are substantive.

The Company determines that it has acquired a business when the acquired set of
activities and assets include an input and a substantive process that together
significantly contribute to the ability to create outputs. The acquired process is
considered substantive if it is critical to the ability to continue producing outputs, and
the inputs acquired include an organized workforce with the necessary skills,
knowledge, or experience to perform that process or it significantly contributes to the
ability to continue producing outputs and is considered unique or scarce or cannot be
replaced without significant cost, eff ort, or delay in the ability to continue producing
outputs.

The consideration transferred for the acquisition of a subsidiary is comprised of:

• fair values of the assets transferred;

• liabilities incurred to the former owners of the acquired business;

• equity interests issued by the Company;

• fair value of any asset or liability resulting from a contingent consideration
arrangement; and

• fair value of any pre-existing equity interest in the subsidiary.

At the acquisition date, the identifiable assets acquired and liabilities and contingent
liabilities assumed are, with limited exceptions, measured initially at their fair values.

For each business combination, the Company elects whether to measure the non¬
controlling interests in the acquiree at fair value or at the proportionate share of the
acquiree''s identifiable net assets.

Acquisition-related costs are expensed as incurred. If the business combination is achieved
in stages, the acquisition date carrying value of the acquirer''s previously held equity interest
in the acquiree is re-measured to fair value at the acquisition date. Any gains or losses
arising from such re-measurement are recognised in the statement of profit and loss.

Where settlement of any part of cash consideration is deferred, the amounts payable in the
future are discounted to their present value as at the date of exchange. The discount rate
used is the entity''s incremental borrowing rate, being the rate at which a similar borrowing
could be obtained from an independent financier under comparable terms and conditions.

Contingent consideration is classified either as equity or a financial liability. Contingent
consideration classified as equity is not re-measured and its subsequent settlement is
accounted for within equity. Amounts classified as a financial liability are subsequently re¬
measured to fair value, with changes in fair value recognised in the statement of profit and
loss.

Goodwill is initially measured at cost, being the excess of the aggregate of:

• the consideration transferred;

• the amount of any non-controlling interest in the acquired entity; and

• the acquisition-date fair value of any previous equity interest in the acquired entity.

over the fair value of the net identifiable assets acquired. If the fair value of the net
assets acquired is in excess of the aggregate consideration transferred, the Company
re-assesses whether it has correctly identified all of the assets acquired and all of the
liabilities assumed and reviews the procedures used to measure the amounts to be
recognised at the acquisition date. If the reassessment still results in an excess of the
fair value of net assets acquired over the aggregate consideration transferred, then the
gain is recognised in OCI and accumulated in equity as capital reserve. However, if
there is no clear evidence of bargain purchase, the entity recognises the gain directly in
equity as capital reserve, without routing the same through OCI.

After initial recognition, goodwill is measured at cost less any accumulated impairment
losses. For the purpose of impairment testing, goodwill acquired in a business
combination is, from the acquisition date, allocated to each of the Group''s cash¬
generating units that are expected to benefit from the combination, irrespective of

whether other assets or liabilities of the acquiree are assigned to those units.

c) Property, plant and equipment

Recognition and Measurement

Items of property, plant and equipment are measured at cost less accumulated
depreciation and accumulated impairment losses, if any. Cost includes expenditures
that are directly attributable to the acquisition of the asset. The cost of self-constructed
assets includes the cost of materials and other costs directly attributable to bringing the
asset to a working condition for its intended use.

Borrowing costs directly attributable to the acquisition, construction or production of an
asset that necessarily takes a substantial period of time to get ready for its intended use
or sale are capitalised as part of the cost of the asset. All other borrowing costs are
expensed in the period in which they occur. Borrowing costs consist of interest and
other costs that an entity incurs in connection with the borrowing of funds. Borrowing
cost also includes exchange differences to the extent regarded as an adjustment to the
borrowing costs.

When parts of an item of property, plant and equipment have different useful lives, they
are accounted for as separate items (major components) of property, plant and
equipment. Capital work in progress is stated at cost, net of accumulated impairment
loss, if any. An item of property, plant and equipment and any significant part initially
recognised is derecognised upon disposal or when no future economic benefits are
expected from its use or disposal. Gains and losses upon disposal of an item of
property, plant and equipment are determined by comparing the proceeds from
disposal with the carrying amount of property, plant and equipment and are recognised
net within “Other income/ Selling and other expense” in the statement of profit and loss.

The cost of replacing part of an item of property, plant and equipment is recognised in
the carrying amount of the item if it is probable that the future economic benefi ts
embodied within the part will fl ow to the Company and its cost can be measured
reliably. The costs of repairs and maintenance are recognised in the statement of profit
and loss as incurred.

Items of property, plant and equipment acquired through exchange of non-monetary
assets are measured at fair value, unless the exchange transaction lacks commercial
substance or the fair value of either the asset received or asset given up is not reliably
measurable, in which case the asset exchanged is recorded at the carrying amount of
the asset given up.

Depreciation

Depreciation is recognised in the statement of profit and loss on a straight line basis over the
estimated useful lives of property, plant and equipment. Land is not depreciated but subject
to impairment. Depreciation methods, useful lives and residual values are reviewed at each
reporting date and any changes are considered prospectively.

The Estimated useful lives are as follows:

Schedule II to the Companies Act, 2013 (“Schedule”) prescribes the useful lives for various
classes of tangible assets. For certain class of assets, based on the technical evaluation and
assessment, the Company believes that the useful lives adopted by it best represent the
period over which an asset is expected to be available for use. Accordingly, for these assets,
the useful lives estimated by the Company are different from those prescribed in the
Schedule.

d) Intangible Assets

Intangible assets other than acquired in a business combination are measured at cost
at the date of acquisition. Following initial recognition, intangible assets are carried at
cost less any accumulated amortization and accumulated impairment losses, if any.

Research costs are expensed as incurred. Internally generated intangible asset arising
from development activity is recognized at cost on demonstration of its technical
feasibility, the intention and ability of the company to complete, use or sell it, only if, it is
probable that the asset would generate future economic benefit and the expenditure
attributable to the said assets during its development can be measured reliably.

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

e) Leases

Company as a lessee

The Company assesses at contract inception whether a contract is or contains a lease,
which applies if the contract conveys the right to control the use of the identified asset
for a period of time in exchange for consideration. The Company recognises a right-of-
use asset at the commencement date of the lease, i.e. the date the underlying asset is
available for use. Assets and liabilities arising from a lease are initially measured on a
present value basis. Lease liabilities include the net present value of the following lease
payments to be made over the lease term:

• fixed payments (including in-substance fixed payments), less any lease incentives
receivable

• variable lease payment that are based on an index or a rate, initially measured using
the index or rate as at the commencement date

• amounts expected to be payable by the Company under residual value guarantees

• the exercise price of a purchase option if the Company is reasonably certain to
exercise that option, and

• payments of penalties for terminating the lease, if the lease term reflects the Company
exercising that option.

The lease payments are discounted using the interest rate implicit in the lease. If that
rate cannot be readily determined, which is generally the case for leases in the
Company, then the lessee''s incremental borrowing rate is used. Such borrowing rate is
calculated as the rate that the individual lessee would have to pay to borrow the funds
necessary to obtain an asset of similar value to the right-of-use asset in a similar
economic environment with similar terms, security and conditions. The Company''s
lease liabilities are included in borrowings.

Lease payments are allocated between principal and interest cost. The interest cost is
charged to statement of profit and loss over the lease period so as to produce a
constant periodic rate of interest on the remaining balance of the liability for each
period.

Right-of-use assets are measured at cost less accumulated depreciation and
accumulated impairment comprised of the following:

• the amount of the initial measurement of lease liability

• any lease payments made at or before the commencement date less any lease
incentives received

• any initial direct costs, and

• restoration costs.

Right-of-use assets are generally depreciated over the shorter of the asset''s useful life
and the lease term on a straight-line basis. Payments associated with short-term
leases of equipment and vehicles and all leases of low-value assets are recognised on
a straight-line basis as an expense in the statement of profit and loss. Short-term
leases are leases with a lease term of 12 months or less. Low-value assets comprise IT
equipment and small items of office furniture.

The right-of-use assets are initially recognised on the balance sheet at cost, which is
calculated as the amount of the initial measurement of the corresponding lease liability,
adjusted for any lease payments made at or prior to the commencement date of the
lease, any lease incentive received and any initial direct costs incurred by the
Company.

Company as a lessor:

At the inception of the lease the Company classifies each of its leases as either an
operating lease or a finance lease. The Company recognises lease payments received
under operating leases as income on a straight- line basis over the lease term. In case
of a finance lease, finance income is recognised over the lease term based on a pattern
reflecting a constant periodic rate of return on the lessor''s net investment in the lease.
When the Company is an intermediate lessor it accounts for its interests in the head
lease and the sub-lease separately. It assesses the lease classification of a sub-lease
with reference to the right-of-use asset arising from the head lease, not with reference
to the underlying asset. If a head lease is a short term lease to which the Company
applies the exemption described above, then it classifies the sub-lease as an 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.

If an arrangement contains lease and non-lease components, the Company applies
Ind AS 115 “Revenue from Contracts with Customers” to allocate the consideration in
the contract.

f) Inventories

Inventories are valued at the lower of cost and net realisable value. Inventories consist
of raw materials, stores and spares, work-in-progress and finished goods and are
measured at the lower of cost and net realisable value.

The cost of all categories of inventories is based on the weighted average method. Cost
includes expenditures incurred in acquiring the inventories, production or conversion
costs and other costs incurred in bringing them to their existing location and condition.

In the case of finished goods and work-in-progress, cost includes an appropriate share
of overheads based on normal operating capacity. Stores and spares consists of
packing materials, engineering spares (such as machinery spare parts) and
consumables (such as lubricants, cotton waste and oils), which are used in operating
machines or consumed as indirect materials in the manufacturing process.

Net realisable value is the estimated selling price in the ordinary course of business,
less the estimated costs of completion and selling expenses.

The factors that the Company considers in determining the provision for slow moving,
obsolete and other non-saleable inventory include estimated shelf life, planned
product discontinuances, price changes, ageing of inventory and introduction of
competitive new products, to the extent each of these factors impact the Company''s
business and markets. The Company considers all these factors and adjusts the
inventory provision to reflect its actual experience on a periodic basis.

g) Impairment

Non-financial assets

The carrying amounts of the Company''s non-financial assets, other than inventories
and deferred tax assets are reviewed at each reporting date to determine whether
there is any indication of impairment. If any such indication exists, then the asset''s
recoverable amount is estimated. For goodwill and intangible assets that have
indefinite lives or that are not yet available for use, an impairment test is performed
each year at 31 March 2024.

The recoverable amount of an asset or cash-generating unit (as defined below) is the
greater of its value in use and its fair value less costs to sell. 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
the risks specific to the asset or the cash-generating unit. For the purpose of
impairment testing, assets are grouped together into the smallest group of assets that
generate cash inflows from continuing use that are largely independent of the cash
inflows of other assets or groups of assets (the “cash-generating unit”).

The goodwill acquired in a business combination is, for the purpose of impairment
testing, allocated to cash-generating units that are expected to benefit from the
synergies of the combination.

An impairment loss is recognised in the statement of profit and loss if the estimated
recoverable amount of an asset or its cash-generating unit is lower than its carrying
amount. Impairment losses recognised in respect of cash-generating units are
allocated first to reduce the carrying amount of any goodwill allocated to the units and
then to reduce the carrying amount of the other assets in the unit on a pro-rata basis.

An impairment loss in respect of goodwill is not reversed. In respect of other assets,
impairment losses recognised in prior periods are assessed at each reporting date for
any indications that the loss has decreased or no longer exists. An impairment loss is
reversed if there has been a change in the estimates used to determine the recoverable
amount. An impairment loss is reversed only to the extent that the asset''s carrying
amount does not exceed its recoverable amount, nor exceed the carrying amount that
would have been determined, net of depreciation or amortisation, if no impairment loss
had been recognised. Goodwill that forms part of the carrying amount of an investment
in joint venture is not recognised separately, and therefore is not tested for impairment
separately. Instead, the entire amount of the investment in joint venture is tested for
impairment as a single asset when there is objective evidence that the investment in
joint venture may be impaired.

h) Employee Benefits

Short-term employee benefits

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

Defined contribution plans

The Company''s contributions to defined contribution plans are charged to the
statement of profit and loss as and when the services are received from the employees.

Defined benefit plans

The liability in respect of defined benefit plans and other post-employment benefits is
calculated using the projected unit credit method consistent with the advice of qualified
actuaries. The present value of the defined benefit obligation is determined by
discounting the estimated future cash outflows using interest rates of high-quality
corporate bonds that are denominated in the currency in which the benefits will be paid,
and that have terms to maturity approximating to the terms of the related defined
benefit obligation. In countries where there is no deep market in such bonds, the
market interest rates on government bonds are used. The current service cost of the
defined benefit plan, recognized in the statement of profit and loss in employee benefit
expense, reflects the increase in the defined benefit obligation resulting from employee
service in the current year, benefit changes, curtailments and settlements. Past service
costs are recognized immediately in the statement of profit and loss.

The net interest cost is calculated by applying the discount rate to the net balance of the
defined benefit obligation and the fair value of plan assets. This cost is included in
employee benefit expense in the statement of profit and loss. Actuarial gains and
losses arising from experience adjustments and changes in actuarial assumptions for
defined benefit obligation and plan assets are recognized in OCI in the period in which
they arise.

When the benefits under a plan are changed or when a plan is curtailed, the resulting
change in benefit that relates to past service or the gain or loss on curtailment is
recognised immediately in the statement of profit and loss. The Company recognises
gains or losses on the settlement of a defined benefit plan obligation when the
settlement occurs.

Termination benefits

Termination benefits are recognised as an expense in the statement of profit and loss
when the Company is demonstrably committed, without realistic possibility of
withdrawal, to a formal detailed plan to either terminate employment before the normal
retirement date, or to provide termination benefits as a result of an off er made to
encourage voluntary redundancy. Termination benefits for voluntary redundancies are
recognised as an expense in the statement of profit and loss if the Company has made
an off er encouraging voluntary redundancy, it is probable that the off er will be
accepted, and the number of acceptances can be estimated reliably.

Other long-term employee benefits

The Company''s net obligation in respect of other long-term employee benefits is the
amount of future benefit that employees have earned in return for their service in the
current and previous periods. That benefit is discounted to determine its present value.
Re-measurements are recognised in the statement of profit and loss in the period in
which they arise.

Compensated absences

The Company''s current policies permit certain categories of its employees to
accumulate and carry forward a portion of their unutilised compensated absences and
utilise them in future periods or receive cash in lieu thereof in accordance with the terms
of such policies. The Company measures the expected cost of accumulating
compensated absences as the additional amount that the Company incurs as a result
of the unused entitlement that has accumulated at the reporting date. Such
measurement is based on actuarial valuation as at the reporting date carried out by a
qualified actuary.

i) Share Based Payments

Equity settled share-based payment transactions

The grant date fair value of options granted to employees is recognised as an
employee benefit expense, in the statement of profit and loss, with a corresponding
increase in equity, over the period that the employees become unconditionally entitled
to the options. The amount recognised as an expense is adjusted to reflect the number
of awards for which the related service and performance conditions are expected to be
met, such that the amount ultimately recognised is based on the number of awards that
meet the related service and performance conditions at the vesting date. The expense
is recorded for each separately vesting portion of the award as if the award was, in
substance, multiple awards. The increase in equity recognised in connection with
share-based payment transaction is presented as a separate component in equity
under “share-based payment reserve”. The amount recognised as an expense is
adjusted to reflect the actual number of stock options that vest.

Cash settled share-based payment transactions

The fair value of the amount payable to employees in respect of share-based payment
transactions which are settled in cash is recognised as an expense, with a
corresponding increase in liabilities, over the period during which the employees
become unconditionally entitled to payment. The liability is re-measured at each
reporting date and at the settlement date based on the fair value of the share-based

payment transaction. Any changes in the liability are recognised in the statement of
profit and loss.

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Mar 31, 2015

1.1 Basis of Preparation of Financial Statements=

i. The Financial Statements are prepared under the historical cost convention on the 'Accrual Concept" of accountancy in accordance with the accounting principles generally accepted in India and they comply with the Accounting Standards prescribed under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and other pronouncement issued by the Institute of Chartered Accountants of India (ICAI), to the extent applicable, and with the applicable provisions of the Companies Act, 2013.

ii. Accounting Policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles followed by the Company.

1.2 Basis of Accounting;

All Income and Expenditure items are recognized on accrual basis. However, Dividend Income ts accounted for on Receipt Basis.

1.3 Fixed Assets & Depreciation:

(i) Fixed Assets are valued at cost less Depreciation. Cast includes all expenses incurred for acquisition of assets and the expenditure incurred for renovation on leased premises has been Capitalized. Intangible assets represents consideration paid for acquisition of such assets and also includes amortized cast of merger expenses.

(ii) The Company provides Depreciation on Tangible assets on straight fine method based on the useful life as prescribed under Schedule II of the Companies Act, 2013. Depreciation for an amount of Rs. 12,43,709.00 has been recognized which relate to the carrying amount of tangible assets whose revised remaining useful life was NIL, as at 1st April 2014 and adjusted against the General Reserve of the company. Intangible Assets are amortized over their estimated economic life of 10 years,

1.4 Inventories:

Closing Stock had been valued at Cost or Market Value whichever is lower.

1.5 Retirement Benefits:

Employees post-retirement benefits such as Gratuity, Pension and leave Encashment wiJI be accounted as and when it arises.

1.6 Impairment of Assets:

Na asset was identified as impaired during the year.

1.7 Cash Flow Statement:

The Cash Flow Statement is prepared by the "Indirect Method" set out in Accounting Standard (AS) - 3 on 'Cash Flow Statements" and presents the cash flows by operating, investing and financing activities of the company. Cash and Cash equivalents presented in the Cash Flow Statement consist of cosh on hand, with Banks in current accounts and demand deposit.

1.8 Foreign Exchange Transactions:

There were no foreign exchange transactions during the year.

1.9 Changes in Accounting Policies:

Accounting Policies have been consistently applied where a newly issued Accounting Standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. Management evaluates all recently issued or revised Accounting Standards on an ongoing basis and accordingly changes the Accounting Policies as applicable.

1.lO Taxes on Income;

Current tax determined based on the amount of tax payable in respect of taxable Income for the period. Deferred tax is recognized on timing differences being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. During the current period the timing difference has arisen due to change in depreciation rates.

1.11 Investments:

Long Term Investments are stated at cost (ess any diminution in the vatue other than temporary. Current Investments are stated at lower of cost or market value.

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Mar 31, 2014

1.1 Basis of Preparation of Financial Statements:

(i) Financial Statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956 as applicable to this Company.

(ii)Accounting Policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles followed by the Company.

1.2 Basis of Accounting:

All Income and Expenditure items are recognised on accrual basis. However, Dividend Income is accounted for on Receipt Basis.

1.3 Fixed Assets & Depreciation:

(i) Fixed Assets are valued at cost less Depreciation. Cost includes all expenses incurred for acquisition of assets and the expenditure incurred for renovation on leased premises has been Capitalised. Intangible assets represents consideration paid for acquisition of such assets and also includes amortised cost of merger expenses.

(ii)The Company provides Depreciation on Straight Line Method at the rates and in the manner specified under Schedule XIV of the Companies Act, 1956. For the Intangible assets the depreciation has been provided by considering the useful life of the asset as 10 years. For the Intangible Assets namely Website Development, the useful life is estimated as Three years and accordingly depreciation has been provided on prorata basis.

1.4 Inventories:

Closing Stock had been valued at Cost or Market Value whichever is lower.

1.5 Retirement Benefits:

Employees post retirement benefits such as Gratuity, Pension and leave Encashment will be accounted as and when it arises.

1.6 Impairment of Assets:

No asset was identified as impaired during the year.

1.7 Cash Flow Statement:

The Cash Flow Statement is prepared by the "Indirect Method" set out in Accounting Standard (AS) - 3 on "Cash Flow Statements" and presents the cash flows by operating, investing and financing activities of the company. Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on hand, with Banks in current accounts and demand deposit.

1.8 Foreign Exchange Transactions:

There were no foreign exchange transactions during the year.

1.9 Changes in Accounting Policies:

Accounting Policies have been consistently applied where a newly issued Accounting Standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use, Management evaluates all recently issued or revised Accounting Standards on an ongoing basis and accordingly changes the Accounting Policies as applicable.

1.10 Taxes on Income:

Current tax determined based on the amount of tax payable in respect of taxable Income for the period. Deferred tax is recognized on timing differences being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. During the current period the timing difference has arisen due to change in depreciation rates.

1.11 Investments:

Investments have been recorded at Cost of acquisition. Temporary diminution in the value of the Investments has been ignored in accordance with the Accounting Standard.

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Mar 31, 2013

1,1 Basis of Preparation of Financial Statements:

(i) Financial Statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956 as applicable to this Company.

(ii) Accounting Policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles followed by the Company.

1.2 Basis of Accounting:

All Income and Expenditure items are recognised on accrual basis. However, Dividend Income is accounted for on Receipt Basis.

1.3 Fixed Assets & Depreciation:

(i) Fixed Assets are valued at cost less Depreciation. Cost includes all expenses incurred for acquisition of assets and the expenditure incurred for renovation on leased premises has been Capitalised.

(ii) The Company provides Depreciation on Straight Line Method at the rates and in the manner specified under Schedule XIV of the Companies Act, 1956. For the Intangible assets the depreciation has been provided by considering the useful life of the asset as 10 years. For the Intangible Assets namely Website Development, the useful life is estimated as Three years and accordingly depreciation has been provided on prorata basis.

1.4 Inventories:

Closing Stock had been valued at Cost or Market Value whichever is lower.

1.5 Retirement Benefits:

Employees post retirement benefits such as Gratuity, Pension and leave Encashment will be accounted as and when it arises.

1.6 Impairment of Assets:

No asset was identified as impaired during the year.

1.7 Cash Flow Statement:

The Cash Flow Statement is prepared by the "Indirect Method" set out in Accounting Standard (AS) - 3 on "Cash Flow Statements" and presents the cash flows by operating, investing and financing activities of the company. Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on hand, with Banks in current accounts and demand deposit.

1.8 Foreign Exchange Transactions:

There were no foreign exchange transactions during the year.

1.9 Changes in Accounting Policies:

Accounting Policies have been consistently applied where a newly issued Accounting Standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use, Management evaluates all recently issued or revised Accounting Standards on an ongoing basis and accordingly changes the Accounting Policies as applicable.

1.10 Taxes on Income:

Current tax determined based on the amount of tax payable in respect of taxable Income for the period. Deferred tax is recognized on timing differences being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. During the current period the timing difference has arisen due to change in depreciation rates.

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Mar 31, 2012

1.1 Basis of Preparation of Financial Statements:

(i) Financial Statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956 as applicable to this Company.

(ii) Accounting Policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles followed by the Company.

1.2 Basis of Accounting:

All Income and Expenditure items are recognised on accrual basis. However, Dividend

Income is accounted for on Receipt Basis.

1.3 Fixed Assets & Depreciation:

(i) Fixed Assets are valued at cost less Depreciation. Cost includes all expenses incurred for acquisition of assets and the expenditure incurred for renovation on leased premises has been Capitalised.

(ii) The Company provides Depreciation on Straight Line Method at the rates and in the manner specified under Schedule XIV of the Companies Act, 1956. For the Intangible assets the depreciation has been provided by considering the useful life of the asset as 10 years. For the Intangible Assets namely Website Development, the useful life is estimated as Three years and accordingly depreciation has been provided on prorata basis.

1.4 Inventories:

Closing Stock had been valued at Cost or Market Value whichever is lower.

1.5 Retirement Benefits:

Employees post retirement benefits such as Gratuity, Pension and Leave

Encashment will be accounted as and when it arises.

1.6 Impairment of Assets:

No asset was identified as impaired during the year.

1.7 Cash Flow Statement:

The Cash Flow Statement is prepared by the "Indirect Method" set out in Accounting Standard (AS) - 3 on "Cash Flow Statements" and presents the cash flows by operating, investing and financing activities of the company. Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on hand, with Banks in current accounts and demand deposit.

1.8 Foreign Exchange Transactions:

There were no foreign exchange transactions during the year.

1.9 Changes in Accounting Policies:

Accounting Policies have been consistently applied where a newly issued Accounting Standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use, Management evaluates all recently issued or revised Accounting Standards on an ongoing basis and accordingly changes the Accounting Policies as applicable.

1.10 Taxes on Income:

Current tax determined based on the amount of tax payable in respect of taxable Income for the period. Deferred tax is recognized on timing differences being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. During the current period the timing difference has arisen due to change in depreciation rates.

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Mar 31, 2010

1. Basis of Preparation of Financial Statements:

(i) Financial Statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956 as applicable to this Company.

(ii) Accounting Policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles followed by the Company.

2. Basis of Accounting:

All Income and Expenditure items are recognised on accrual basis. However, Dividend Income is accounted for on Receipt Basis.

3. Fixed Assets & Depreciation:

(i) Fixed Assets are valued at cost less Depreciation. Cost includes all expenses incurred for acquisition of assets and the expenditure incurred for renovation on leased premises has been Capitalised.

(ii) The Company provides Depreciation on Straight Line Method at the rates and in the manner specified under Schedule XIV of the Companies Act, 1956. For the Intangible assets the depreciation has been provided by considering the useful life of the assets as 10 years. For the Intangible Assets added during the year namely Website

Development, the useful life is estimated as Three years and accordingly depreciation has been provided on prorata basis.

4. Inventories:

Closing Stock had been valued at Cost or Market Value whichever is lower.

5. Retirement Benefits:

Employees post retirement benefits such as Gratuity, Pension and leave Encashment will be accounted as and when it arises.

6. Impairment of Assets:

No asset was identified as impaired during the year.

7. Cash Flow Statement:

The Cash Flow Statement is prepared by the "Indirect Method" set out in Accounting Standard (AS) - 3 on "Cash Flow Statements" and presents the cash flows by operating, investing and financing activities of the company. Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on hand, with Banks in current accounts and demand deposit.

8. Foreign Exchange Transactions:

There were no foreign exchange transactions during the year.

9. Changes in Accounting Policies:

Accounting Policies have been consistently applied where a newly issued Accounting Standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use, Management evaluates all recently issued or revised Accounting Standards on an ongoing basis and accordingly changes the Accounting Policies as applicable.

10. Taxes on Income:

Current tax determined based on the amount of tax payable in respect of taxablelncome for the period. Deferred tax is recognized on timing differences being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. During the current period the timing difference has arisen due to change in depreciation rates.