Accounting Policies of Rajputana Industries Ltd. Company

Mar 31, 2025

1.1 Company Overview:

Rajputana Industries Limited (''the Company'') is a limited Company domiciled and incorporated in India. The registered
office of the Company is located at F-269-B, Road No. 13 V.K. industrial Area Jaipur-302013 Rajasthan, and India.

The Company is engaged in activity of manufacturer of non-ferrous metal products.

1.2 General Information & Statement of Compliance with Ind AS:

These financial statements are the separate financial statements of the Company (also called as standalone financial
statements) prepared in accordance with Indian Accounting Standard ("Ind AS”) notified under the Companies Act, ''13
("the Act”) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, ''15, as amended.

1.3 Significant Accounting Policies:

1.3.1 Basis of Preparation and Presentation

The Financial Statements have been prepared on the historical cost basis except for following assets and
liabilities which have been measured at fair value amount:

(a) Certain Financial Assets and Liabilities (including derivative instruments if any), and

(b) Defined Benefit Plans - Plan Assets

The financial statements of the Company have been prepared to comply with the Indian Accounting standards
(''Ind AS''), including the rules notified under the relevant provisions of the Companies Act, ''13.

The Company''s Financial Statements are presented in Indian Rupees, which is also its functional currency

1.3.2 Fair Value Measurement

Some of the Company''s accounting policies and disclosures require the measurement of fair values, for both
financial and non-financial assets and liabilities.

The Company has an established control framework with respect to the measurement of fair values. This includes
a financial reporting team that has overall responsibility for overseeing all significant fair value measurements,
including Level 3 fair values.

The financial reporting team regularly reviews significant unobservable inputs and valuation adjustments. If
third party information, such as pricing services, is used to measure fair values, then the financial reporting
team assesses the evidence obtained from the third parties to support the conclusion that these valuations
meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should be
classified.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation
techniques as follows.

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as
possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair
value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value
hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period
during which the change has occurred.

1.3.3 Current and Non-Current Classification

The Company presents assets and liabilities in the Balance Sheet based on Current /Non- Current classification.
An asset is treated as Current when it is -

- Expected to be realised or intended to be sold or consumed in normal operating cycle;

- Held primarily for the purpose of trading;

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

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

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading;

- It is due to be settled within twelve months after the reporting period, or

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

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

1.3.4 Property, Plant and Equipment

(a) Tangible Assets

Property, Plant and Equipment are stated at cost, net of recoverable taxes, trade discount and rebates less
accumulated depreciation and impairment losses, if any. Such cost includes purchase price, borrowing cost and
any cost directly attributable to bringing the assets to its working condition for its intended use, net charges on
foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the entity and the
cost can be measured reliably.

Property, Plant and Equipment which are significant to the total cost of that item of Property, Plant and
Equipment and having different useful life are accounted separately.

Other Indirect Expenses incurred relating to project, net of income earned during the project development
stage prior to its intended use, are considered as pre-operative expenses and disclosed under Capital Work-in¬
Progress.

Depreciation

Free hold land is not depreciated. Leasehold land and the improvement costs are amortized over the period
of the lease. Depreciation on Property, Plant and Equipment is provided using Straight Line Method (SLM).
Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, ''13.

The residual values, useful lives and methods of depreciation of Property, Plant and Equipment are reviewed at
each financial year end and adjusted prospectively, if appropriate.

Derecognition

Gains or losses arising from derecognition of a Property, Plant and Equipment are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of
Profit and Loss when the asset is derecognised.

(b) Capital Work-in-Progress and Capital Advances

Cost of Property, Plant and Equipment not ready for intended use, as on the balance sheet date, is shown as a
"Capital Work-in-Progress”. The Capital Work-in-Progress is stated at cost. Any expenditure in relation to survey
and investigation of the properties is carried as Capital Work-in-Progress. Such expenditure is either capitalized
as cost of the projects on completion of construction project or the same is expensed in the period in which it
is decided to abandon such project. Any advance given towards acquisition of Property, Plants and Equipment
outstanding at each balance sheet date is disclosed as "Other Current Assets”.

(c) Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes, trade discount and rebates less
accumulated amortisation/depletion and impairment losses, if any. Such cost includes purchase price, borrowing
costs, and any cost directly attributable to bringing the asset to its working condition for the intended use, net
charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to
the Intangible Assets.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the entity and the
cost can be measured reliably.

Amortization

The amortization expenses on Intangible assets with the finite lives are recognized in the Statement of Profit
and Loss.The amortization period and the amortization method for an intangible asset with finite useful life is
reviewed at each financial year end and adjusted prospectively, if appropriate.

Derecognition

Gains or losses arising from derecognition of an Intangible Asset are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and
Loss when the asset is derecognised.

1.3.5 Impairment of Non-Financial Assets - Property, Plant and Equipment and Intangible Assets

The Company assesses at each reporting date as to whether there is any indication that any Property, Plant
and Equipment and Intangible Assets or group of Assets, called Cash Generating Units (CGU) may be impaired.
If any such indication exists, the recoverable amount of an asset or CGU is estimated to determine the extent
of impairment, if any. When it is not possible to estimate the recoverable amount of an individual asset, the
Company estimates the recoverable amount of the CGU to which the asset belongs.

An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset''s carrying amount
exceeds its recoverable amount. The recoverable amount is higher of an asset''s fair value less cost of disposal
and value in use. Value in use is based on the estimated future cash flows, discounted to their present value using
pre-tax discount rate that reflects current market assessments of the time value of money and risk specific to
the assets.

The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate
of recoverable amount.

There are no losses from impairment of assets to be recognized in the financial statements.

1.3.6 Lease

(a) The Company as a Lessee

The Company, as a lessee, recognises a right- of-use asset and a lease liability for its leasing arrangements, if
the contract conveys the right to control the use of an identified asset.

The contract conveys the right to control the use of an identified asset, if it involves the use of an identified
asset and the Company has substantially all of the economic benefits from use of the asset and has right to
direct the use of the identified asset. The cost of the right-of- use asset shall comprise of the amount of the
initial measurement of the lease liability adjusted for any lease payments made at or before the commencement
date plus any initial direct costs incurred. The right-of-use assets is subsequently measured at cost less any
accumulated depreciation, accumulated impairment losses, if any, and adjusted for any remeasurement of the
lease liability. The right-of-use assets are depreciated using the straight-line method from the commencement
date over the shorter of lease term or useful life of right-of-use asset.

The Company measures the lease liability at the present value of the lease payments that are not paid at the
commencement date of the lease. The lease payments are discounted using the interest rate implicit in the
lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses
incremental borrowing rate.

(b) The Company as a Lessor

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

For operating leases, rental income is recognized on a straight-line basis over the term of the relevant lease.

1.3.7 Investment Properties

Items of investment properties are measured at cost less accumulated depreciation/ amortization and
accumulated impairment losses. Cost includes expenditure that is directly attributable to bringing the asset
to the location and condition necessary for its intended use. Investment properties are depreciated on straight
line method on pro-rata basis at the rates specified therein. Subsequent expenditure including cost of major
overhaul and inspection is recognized as an increase in the carrying amount of the asset 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.

1.3.8 Inventories

Items of inventories under raw material, Work in Progress and consumables are measured at cost and Finished
good and other items are valued at cost and net realizable value w.e. less after providing for obsolescence, if any.
Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing
overheads net of recoverable taxes incurred in bringing them to their respective present location and condition.

1.3.9 Borrowing Costs

Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are
regarded as an adjustment to the interest cost. Borrowing costs that are directly attributable to the acquisition
or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one
that necessarily takes substantial period of time to get ready for its intended use.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are
incurred.

1.3.10 Employee Benefits

(A) Short-Term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services
rendered by employees are recognised as an expense during the period when the employees render the services.

(B) Post-Employment Benefits

(i) Defined Contribution Plans

The Company recognises contribution payable to the provident fund scheme as an expense, when an employee
renders the related service. If the contribution payable to the scheme for service received before the balance
sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognised as a liability.
If the contribution already paid exceeds the contribution due for services received before the balance sheet
date, then excess is recognised as an asset to the extent that the pre-payment will lead to a reduction in future
payment or a cash refund.

(ii) Defined Benefit Plans

(a) Gratuity Scheme: The Company pays gratuity to the employees who have completed five years of service with
the Company at the time of resignation/superannuation. The gratuity is paid @ 15 days basic salary and dearness
allowances for every completed year of service as per the Payment of Gratuity Act, 1972. The liability in respect
of gratuity and other post-employment benefits is calculated using the Projected Unit Credit Method and spread
over the period during which the benefit is expected to be derived from employees'' services.

Remeasurement gains and losses arising from adjustments and changes in actuarial assumptions are recognised
in the period in which they occur in Other Comprehensive Income.

(iii) Other Long - Term Employee Benefits

Entitlement to annual leave is recognized when they accrue to employees.

1.3.11 Revenue Recognition

Revenue from contracts with customers is recognised when control of the goods or services are transferred
to the customer at an amount that reflects the consideration entitled in exchange for those goods or services.

The Company has generally typically controls the goods or services before transferring them to the customer.

Generally, control is transferred upon shipment of goods to the customer or when the goods is made available to
the customer, provided transfer of title to the customer occurs and the Company has not retained any significant
risks of ownership or future obligations with respect to the goods shipped.

Revenue from rendering of services is recognised on when the services are rendered and related cost are
incurred over time by measuring the progress towards complete satisfaction of performance obligations at the
reporting period.

Revenue is measured at the amount of consideration which the Company expects to be entitled to in exchange for
transferring distinct goods or services to a customer as specified in the contract, excluding amounts collected
on behalf of third parties (for example taxes and duties collected on behalf of the government). Consideration
is generally due upon satisfaction of performance obligations and a receivable is recognised when it becomes
unconditional.

Export Incentives

Export incentive revenues are recognized when the right to receive the credit is established and there is no
significant uncertainty regarding the ultimate collection.

Interest Income

Interest Income from a Financial Assets is recognised using effective interest rate method.

Dividend Income

Dividend Income is recognised when the Company''s right to receive the amount has been established.
Provision for Price Variation

In accordance with the prevailing international market practice, the purchase and sale of copper products are
accounted for on provisional invoice basis pending final invoice in terms of purchase contract/ order pending on
the price of LME.

Company is following practice of recognizing the difference of the value of provisional invoice and final invoice of
its customers whose final invoice could not be raised in the current financial year by way of price variation claims
which is included in the turnover of the company.

Surplus / (Loss) on disposal of Property, Plants and Equipment / Investments

Surplus or loss on disposal of property, plants and equipment or investment is recorded on transfers of title from
the Company, and is determined as the difference between the sales price and carrying value of the property,
plants and equipment or investments and other incidental expenses.

Rental Income

Rental income arising from operating lease on investments properties is accounted for on a straight - line basis
over the lease term except the case where the incremental lease reflects inflationary effect and rental income
is accounted in such case by actual rent for the period.

Insurance Claim

Claim receivable on account of insurance is accounted for to the extent the Company is reasonably certain of
their ultimate collections.

Other Income

Revenue from other income is recognized when the payment of that related income is received or credited.

1.3.12 Foreign Currency Transactions and Translation

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency
closing rates of exchange at the reporting date. Exchange differences arising on settlement or translation of
monetary items are recognised in Statement of Profit and Loss except to the extent of exchange differences
which are regarded as an adjustment to interest costs on foreign currency borrowings that are directly
attributable to the acquisition or construction of qualifying assets which are capitalised as cost of assets.

Non-monetary items that are measured in terms of historical cost in a foreign currency are recorded using the
exchange rates at the date of the transaction. Non-monetary items measured at fair value in a foreign currency
are translated using the exchange rates at the date when the fair value was measured. The gain or loss arising
on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain
or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss
is recognised in Other Comprehensive Income or Statement of Profit and Loss are also recognised in Other
Comprehensive Income or Statement of Profit and Loss, respectively).

1.3.13 Government Grants and Subsidies

Grants in the nature of subsidies which are non-refundable are recognized as income where there is reasonable
assurance that the Company will comply with all the necessary conditions attached to them. Income from grants
is recognized on a systematic basis over periods in which the related costs that are intended to be compensated
by such grants are recognized. Government grant in nature of investment subsidy is credited to capital reserve.

Refundable government grants are accounted in accordance with the recognition and measurement principle
of Ind AS 109, "Financial Instruments”. It is recognized as income when there is a reasonable assurance that
the Company will comply with all necessary conditions attached to the grants. Income from such benefit is
recognized on a systematic basis over the period of the grants during which the Company recognizes interest
expense corresponding to such grants.

1.3.14 Financial Instruments - Financial Assets

(A) Initial Recognition and Measurement

All Financial Assets are initially recognised at fair value. Transaction costs that are directly attributable to the
acquisition or issue of Financial Assets, which are not at Fair Value Through Profit or Loss, are adjusted to the fair
value on initial recognition. Purchase and sale of Financial Assets are recognised using trade date accounting.

(B) Subsequent Measurement

a) Financial Assets measured at Amortised Cost (AC)

A Financial Asset is measured at Amortised Cost if it is held within a business model whose objective is to hold
the asset in order to collect contractual cash flows and the contractual terms of the Financial Asset give rise to
cash flows on specified dates that represent solely payments of principal and interest on the principal amount
outstanding.

b) Financial Assets measured at Fair Value Through Other Comprehensive Income (FVTOCI)

A Financial Asset is measured at FVTOCI if it is held within a business model whose objective is achieved by
both collecting contractual cash flows and selling Financial Assets and the contractual terms of the Financial
Asset give rise on specified dates to cash flows that represents solely payments of principal and interest on the
principal amount outstanding.

Further, the Company, through an irrevocable election at initial recognition, has measured certain investments
in equity instruments at FVTOCI. The Company has made such election on an instrument-by-instrument basis.
These equity instruments are neither held for trading nor are contingent consideration recognized under a
business combination. Pursuant to such irrevocable election, subsequent changes in the fair value of such equity
instruments are recognized in OCI. However, the Company recognizes dividend income from such instruments in
the Statement of Profit and Loss.

c) Financial Assets measured at Fair Value Through Profit or Loss (FVTPL)

A Financial Asset which is not classified in any of the above categories is measured at FVTPL. Financial assets
are reclassified subsequent to their recognition, if the Company changes its business model for managing those
financial assets. Changes in business model are made and applied prospectively from the reclassification date
which is the first day of immediately next reporting period following the changes in business model in accordance
with principles laid down under Ind AS 109 - Financial Instruments.

(C) Investments

Investments are classified in to Current or Non-Current Investments. Investments that are readily realizable and
intended to be held for not more than a year from the date of acquisition are classified as Current Investments. All
other Investments are classified as Non - Current Investments. However, that part of Non - Current Investments
which are expected to be realized within twelve months from the Balance Sheet date is also presented under
"Current Investments” under "Current portion of Non-Current Investments” in consonance with Current/Non-
Current classification of Schedule - III of the Act.

All the equity investment which covered under the scope of Ind AS 109, "Financial Instruments” is measured
at the fair value. Investment in Mutual Fund is measured at fair value through profit and loss (FVTPL). Trading
Instruments are measured at fair value through profit and loss (FVTPL).

(D) Investment in Subsidiaries, Associates and Joint Ventures

The Company has accounted for its investments in Subsidiaries, associates and joint venture at cost less
impairment loss (if any).

(E) Impairment of Financial Assets

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

1.3.15 Financial Instruments - Financial Liabilities

(A) Initial Recognition and Measurement

All Financial Liabilities are recognised at fair value and in case of borrowings, net of directly attributable cost.
Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

(B) Subsequent Measurement

Financial Liabilities are carried at amortised cost using the effective interest method. For trade and other
payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value
due to the short maturity of these instruments.

1.3.16 Derivative Financial Instruments and Hedge Accounting

The Company enters into derivative contracts in the nature of forward currency contracts with external parties
to hedge its foreign currency risks relating to foreign currency denominated financial assets measured at
amortised cost.

The Company formally establishes a hedge relationship between such forward currency contracts (''hedging
instrument'') and recognised financial assets (''hedged item'') through a formal documentation at the inception of
the hedge relationship in line with the Company''s Risk Management objective and strategy.

The hedge relationship so designated is accounted for in accordance with the accounting principles prescribed
for a cash flow hedge under Ind AS 109, ''Financial Instruments''.

Recognition and measurement of cash flow hedge:

The Company strictly uses foreign currency forward contracts to hedge its risks associated with foreign currency
fluctuations relating to certain forecasted transactions. As per Ind AS 109 - Financial Instruments, foreign
currency forward contracts are initially measured at fair value and are re-measured at subsequent reporting
dates. Changes in the fair value of these derivatives that are designated and effective as hedges of future cash
flows are recognised in hedge reserve (under reserves and surplus) through other comprehensive income and
the ineffective portion is recognised immediately in the statement of profit and loss.

The accumulated gains / losses on the derivatives accounted in hedge reserve are transferred to the statement
of profit and loss in the same period in which gains / losses on the underlying item hedged are recognised in the
statement of profit and loss.

Derecognition:

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or
no longer qualifies for hedge accounting. When hedge accounting is discontinued for a cash flow hedge, the
net gain or loss will remain in hedge reserve and be reclassified to the statement of profit and loss in the same
period or periods during which the formerly hedged transaction is reported in the statement of profit and loss.
If a hedged transaction is no longer expected to occur, the net cumulative gains / losses recognised in hedge
reserve is transferred to the statement of profit and loss.

Fair Value Hedge:

The Company designates derivative contracts or non-derivative Financial Assets/Liabilities as hedging
instruments to mitigate the risk of change in fair value of hedged item due to movement in interest rates, foreign
exchange rates and commodity prices.

Changes in the fair value of hedging instruments and hedged items that are designated and qualify as fair value
hedges are recorded in the Statement of Profit and Loss. If the hedging relationship no longer meets the criteria
for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest
method is used is amortised to Statement of Profit and Loss over the period of maturity.

1.3.17 Derecognition of Financial Instruments

The Company derecognises a Financial Asset when the contractual rights to the cash flows from the Financial
Asset expire or it transfers the Financial Asset and the transfer qualifies for derecognition under Ind AS 109. A
Financial liability (or a part of a financial liability) is derecognised from the Company''s Balance Sheet when the
obligation specified in the contract is discharged or cancelled or expires.

1.3.18 Financial Instruments - Offsetting

Financial Assets and Financial Liabilities are offset and the net amount is presented in the balance sheet when,
and only when, the Company has a legally enforceable right to set off the amount and it intends, either to settle
them on a net basis or to realise the asset and settle the liability simultaneously.

1.3.19 Taxes on Income

The tax expenses for the period comprises of current tax and deferred income tax. Tax is recognised in Statement
of Profit and Loss, except to the extent that it relates to items recognised in the Other Comprehensive Income.
In which case, the tax is also recognised in Other Comprehensive Income.

(a) Current Tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
Income Tax authorities, based on tax rates and laws that are enacted at the Balance sheet date.

(b) Deferred Tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in
the Financial Statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax assets are recognised to the extent it is probable that taxable profit will be available against which
the deductible temporary differences, and the carry forward of unused tax losses can be utilised. Deferred tax
liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is
settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted
by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the
end of each reporting period.

Presentation

The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set
off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle
the liability simultaneously. In case of deferred tax assets and deferred tax liabilities, the same are offset if the
Company has a legally enforceable right to set off corresponding current tax assets against current tax liabilities
and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority
on the Company.

1.3.20 Segment Reporting

Segments are identified having regard to the dominant source and nature of risks and returns and the internal
organization and management structure. The company primarily operates in non-ferrous metal segment of
business hence looking to the nature of business segment reporting is not applicable to company

1.3.21 Research and Development

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss as and when incurred.

Development costs are capitalised as an intangible asset if it can be demonstrated that the project is expected
to generate future economic benefits, it is probable that those future economic benefits will flow to the entity
and the costs of the asset can be measured reliably, else it is charged to the Statement of Profit and Loss.

1.3.22 Earnings per Share

Basic earnings per share is calculated by dividing the net profit after tax by the weighted average number of
equity shares outstanding during the period adjusted for bonus element in equity share. Diluted earnings per
share adjusts the figures used in determination of basic earnings per share to take into account the conversion
of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as at the beginning
of the period unless issued at a later date.

1.3.23 Provisions, Contingent Liabilities

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of
money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the
risks specific to the liability.

Disclosure of contingent liability is made when there is a possible obligation arising from past events, the
existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the Company or a present obligation that arises from past events where
it is either not probable that an outflow of resources embodying economic benefits will be required to settle or
a reliable estimate of amount cannot be made.

1.3.24 Events after Reporting Date

Where events occurring after the Balance Sheet date provide evidence of condition that existed at the end of
reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after
the Balance Sheet date of material size or nature are only disclosed.

1.3.25 Non - Current Assets Held For Sales

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a
sale transaction rather than through continuing use and sale is considered highly probable.

A sale is considered as highly probable when decision has been made to sell, assets are available for immediate
sale in its present condition, assets are being actively marketed and sale has been agreed or is expected to be
concluded within 12 months of the date of classification.

Non-current assets held for sale are neither depreciated nor amortised.

Assets and liabilities classified as held for sale are measured at the lower of their carrying amount and fair value
less cost of sale and are presented separately in the Balance Sheet.