Accounting Policies of Raymond Lifestyle Ltd. Company

Mar 31, 2025

1 STATEMENT OF MATERIAL ACCOUNTING POLICIES
A. Background

Raymond Lifestyle Limited (‘RLL’ or ''the Company’)
[CIN:L74999MH2018PLC316288] incorporated in
India is a leading Indian Textile, Lifestyle and Branded
Apparel Company. The Company has its wide network
of operations in local as well foreign market. Company
is a textile powerhouse with modern infrastructure and
strong fibre-to-fabric manufacturing capabilities. Along
with being reputed, it is the fastest-growing fashion fabric
brand. Raymond Lifestyle offers an exquisite range of
shirting and suiting fabrics across a plethora of options
such as Worsted fabrics, Cotton, Wool blends, Linen and
Denim.

The Company is a public limited company and is listed
on the Bombay Stock Exchange (BSE) and National Stock
Exchange (NSE).

The Company has its registered office at Plot No.G-35 &
36, MIDC Waluj Taluka, Gangapur, Aurangabad - 431136,
Maharashtra.

The Board of Directors of the Company at its meeting held
on 27 April 2023 had approved the Composite Scheme
of Arrangement for the demerger of the lifestyle business
undertaking of Raymond Limited (''Demerged Company’)
into Raymond Lifestyle Limited (formerty known as
Raymond Consumer Care Limited) (''the Company’) on a
going concern basis. The appointed date proposed under
this scheme was 01 April 2023.

The Company had received requisite approval from
National Company Law Tribunal (''NCLT) vide its order
dated 21 June 2024. Respective companies had filed the
certified true copy of NCLT order along with the sanctioned
scheme with the Registrar of Companies on 30 June 2024.
Accordingly, the scheme was effeclive w.e.f. 30 June 2024.

The accounting of this scheme in the books of the Company
has been done in accordance with Ind AS 103 ''Business
Combinations- (''Ind AS 103’) as on the appointed date. In
accordance with Ind AS 103, purchase consideration has
been allocated on the basis of fair valuation determined
by an independent valuer.

As a consideralion for the demerger, the Company was
required to issue rts equity shares to the shareholders of
Raymond Limited as on record date in 4:5 swap ratio (i.e.,
four shares of Rs. 2 each had to be issued by Raymond
Lifestyle Limited for every five shares of Rs. 10 each held
by the shareholders in Raymond Limited).

Accordingly, the Holding Company had allotted
53,258,984 equity shares having face value of Rs. 2 each
to the shareholders of Raymond Limited on 11 July 2024.
These equity shares were subsequently listed on BSE
Limited (''BSE’) and the National Stock Exchange of India
Limited (''NSE’) on 05 September 2024.

B. Material Accounting Policies followed by the
Company

(a) Basis of preparation

(i) Compliance with Ind AS

These standalone financial statements
(''financial statements’) have been prepared
on an “accrual basis” in accordance with the
Indian Accounting Standards (hereinafter
referred to as the ''Ind AS’) as notified by Ministry
of Corporate Affairs pursuant to Section 133 of
the Companies Act, 2013 (''Act’) read with of
the Companies (Indian Accounting Standards)
Rules, 2015, as amended, and other relevant
provisions of the Act and guidelines issued by
the Securities and Exchange Board of India
(SEBI).

The accounting policies are applied
consistently to all the periods presented in the
financial statements.

(ii) Historical cost convention

The financial statements have been prepared
on a historical cost basis, except for the
following:

1) certain financial assets and liabilities that
are measured at fair value;

2) assets held for sale - measured at lower
of carrying amount or fair value less cost
to sell;

3) defined benefit plans - plan assets
measured at fair value;

(iii) Current and non-current classification

All assets and liabilities have been classified
as current or non-current based on the
Company’s normal operating cycle for each of
its businesses, as per the criteria set out in the
Schedule III to the Act.

(iv) Rounding of amounts

All amounts disclosed in the financial
statements and notes have been rounded off
to the nearest lakhs as per the requirement of
Schedule III, unless otherwise stated.

(b) Use of estimates

The estimates used in the preparation of the
financial statements are continuously evaluated
by the Company and are based on historical
experience and various other assumptions and
factors (including expectations of future events) that
the Company believes to be reasonable under the
existing circumstances. Differences between actual
results and estimates are recognised in the period in
which the results are known/materialised.

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

(c) Property, plant and equipment (including Capital
Work-in-Progress)

The Company had applied for the one time transition
exemption of considering the carrying cost on the
transition date i.e. 1st April, 2015 as the deemed
cost under IND AS, regarded thereafter as historical
cost.

Freehold land is carried at cost. AIL other items of
property, plant and equipment are stated at cost less
depreciation and impairment, if any. Historical cost
includes expenditure that is directly attributable to
the acquisition of the items.

Capital Work-in-progress includes expenditure
incurred tiLL the assets are put into intended use.
Capital Work-in-Progress are measured at cost less
accumulated impairment losses, if any.

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

Depreciation methods, estimated useful lives
and residual value

Depreciation on Factory BuiLdings, Specific non
factory buiLdings, PLant and Equipment, is provided
as per the Straight Line Method and in case of other
assets as per the Written Down VaLue Method, over
the estimated usefuL Lives of assets. LeasehoLd Land
is amortised over the period of Lease. LeasehoLd
improvements are amortised over the period of Lease
or estimated usefuL Life, whichever is Lower.

The Company depreciates its property, pLant and
equipment (PPE) over the usefuL Life in the manner
prescribed in ScheduLe II to the Act. Management
beLieves that usefuL Life of assets are same as those
prescribed in ScheduLe II to the Act, except for pLant
and equipment’s and aircraft wherein based on
technicaL evaLuation, usefuL Life has been estimated
to be different from that prescribed in ScheduLe II of
the Act.

UsefuL Life considered for caLcuLation of depreciation
for various assets cLass are as foLLows-

The residuaL vaLues are not more than 5% of the
originaL cost of the asset. The assets residuaL
values and useful lives are reviewed, and adjusted if
appropriate, at the end of each reporting period.

Depreciation on additions / deLetions is caLcuLated
pro-rata from the month of such addition / deLetion,
as the case maybe.

BaLance as at 31 March 2024 Gains and Losses on
disposaLs are determined by comparing proceeds
with carrying amount. These are incLuded in the
Statement of Profit and Loss.

(d) Investment properties

The Company had appLied for the one time transition
exemption of considering the carrying cost on the
transition date i.e. 1st ApriL, 2015 as the deemed
cost under IND AS, regarded thereafter as historicaL
cost.

Property that is heLd for Long-term rentaL yieLds or for
capitaL appreciation or both, and that is not occupied
by the Company, is cLassified as investment
property. Investment property is measured at its
cost, incLuding reLated transaction costs and where
appLicabLe borrowing costs Less depreciation and
impairment if any.

Depreciation on buiLding is provided over it’s usefuL
Life using the written down vaLue method, in a
manner simiLar to PPE.

UsefuL Life considered for caLcuLation of depreciation
for assets cLass are as foLLows-

Asset Classification Useful life

Non- factory building 60 years

(e) Intangible assets (including intangible assets
under development)

IntangibLe assets acquired separateLy are carried
at cost Less accumuLated amortisation and
accumuLated impairment Losses. Cost of a non¬
monetary asset acquired in exchange of another
non-monetary asset is measured at fair vaLue.

The Company amortizes intangible assets with
a finite useful life using the straight-line method
over following period in the statement of profit and
loss under the head depreciation and amortization
expense.

Asset Class Useful Life

Computer Software 3 years

Gains and losses on disposals are determined by
comparing proceeds with carrying amount. These
are included in the Statement of Profit and Loss.

An intangible asset is derecognised upon disposal
(i.e., at the date the recipient obtains control) or
when no future economic benefits are expected
from its use or disposal.

The amortisation period and the amortisation
method for finite-life intangible assets is reviewed at
each financial year end and adjusted prospectively,
if appropriate. Indefinite-life intangible assets
comprises of trademarks and brands, for which
there is no foreseeable limit to the period over which
they are expected to generate net cash inflows.
These are considered to have an indefinite life, given
the strength and durability of the brands and the level
of marketing support. For indefinite-life intangible
assets, the assessment of indefinite life is reviewed
annually to determine whether it continues, if not, it
is impaired or changed prospectively basis revised
estimates.

(f) Leases

The Company assesses at contract inception
whether a contract is, or contains, a lease. That is,
if the contract conveys the right to control the use of
an identified asset for a period of time in exchange
for consideration.

To assess whether a contract conveys the right to
control the use of an identified asset, the Company
assesses whether: (i) the contract involves the use of
an identified asset (ii) the Company has substantially
all of the economic benefits from use of the asset
through the period of the lease and (iii) the Company
has the right to direct the use of the asset.

Company as a lessee

At lease commencement date, the Company
recognises a right-of-use assets and a lease
liabilities on the balance sheet. The right-of-use
asset is measured at cost, which is made up of
the initial measurement of the lease liabilities, any
initial direct costs incurred by the Company and
any lease payments made in advance of the lease
commencement date.

The Company depreciates the right-of-use assets on
a straight-line basis from the lease commencement
date to the earlier of the end of the useful life of the

right-of-use assets or the end of the lease term. The
Company also assesses the right-of-use asset for
impairment when such indicators exist.

At the commencement date of lease, the Company
measures the lease liabilities at the present value of
the lease payments to be made over the lease term,
discounted using the interest rate implicit in the
lease if that rate is readily available or the Company’s
incremental borrowing rate.

The Company cannot readily determine the interest
rate implicit in the lease, therefore, it uses its
incremental borrowing rate (IBR) to measure lease
liabilities.

Lease payments included in the measurement of
the lease liability are made up of fixed payments
(including in substance, fixed), and payments arising
from options reasonably certain to be exercised.
Subsequent to initial measurement, the liability will
be reduced for payments made and increased for
interest expenses. It is remeasured to reflect any
reassessment or modification.

When the lease liability is remeasured, the
corresponding adjustment is reflected in the right-
of-use asset or Statement of profit and loss, as the
case may be.

The Company has elected to account for short-term
leases and leases of low-value assets using the
exemption given under Ind AS 116, Leases. Instead
of recognising a right-of-use asset and lease liability,
the payments in relation to these are recognised as
an expense in profit or loss on a straight-line basis
over the lease term or on another systematic basis if
that basis is more representative of the pattern of the
Company’s benefit.

Company as a lessor

Leases for which the Company is a lessor classified
as finance or operating lease.

Lease income from operating leases where the
Company is a lessor is recognised in income on
a straight-line basis over the lease term unless
the receipts are structured to increase in line with
expected general inflation to compensate for the
expected inflationary cost increases. The respective
leased assets are included in the balance sheet
based on their nature.

(g) Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet
comprise cash at banks, cash on hand and short¬
term deposits with an original maturity of three
months or less, that are readily convertible to a
known amount of cash and subject to an insignificant
risk of changes in value.

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

(h) Inventories

Inventories of Raw Materials, Work-in-Progress,
Stores and spares, Finished Goods, Stock-in-trade
and Property under development are stated ''at
cost or net realisable value, whichever is lower’.
Goods-in-Transit are stated ''at cost’. Cost comprise
all cost of purchase, cost of conversion and other
costs incurred in bringing the inventories to their
present location and condition. Cost formulae
used are ''First-in-First-out’, ''Weighted Average
cost’ or ''Specific identification’, as applicable. Due
allowance is estimated and made for defective and
obsolete items, wherever necessary.

(i) Investments in subsidiaries, joint ventures and
associates

Investments in subsidiaries, joint ventures and
associates are recognised at cost as per Ind AS
27, as reduced by provision for impairment loss,
if any. Except where investments accounted for
at cost shall be accounted for in accordance with
Ind AS 105, Non-current Assets Held for Sale and
Discontinued Operations, when they are classified
as held for sale.

(j) Investments and other financial assets

(i) Classification

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

(1) those to be measured subsequently
at fair value (either through other
comprehensive income, or through the
Statement of Profit and Loss), and

(2) those measured at amortised cost.

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

(ii) Measurement

At initial recognition, the Company measures
a financial asset (excluding trade receivables
which do not contain a significant financing
component) at its fair value . Transaction
costs of financial assets carried at fair value
through the Profit and Loss are expensed in the
Statement of Profit and Loss.

Debt instruments:

Subsequent measurement of debt instruments
depends on the Company’s business model
for managing the asset and the cash flow
characteristics of the asset. The Company
classifies its debt instruments into following
categories:

(1) Amortised cost: Assets that are held
for collection of contractual cash flows
where those cash flows represent solely
payments of principal and interest are
measured at amortised cost. Interest
income from these financial assets
is included in other income using the
effective interest rate method.

(2) Fair value through profit and loss:

Assets that do not meet the criteria for
amortised cost are measured at fair value
through statement of Profit and Loss.
Interest income from these financial
assets is included in other income.

Equity instruments:

The Company measures its equity investment
other than in subsidiaries, joint ventures
and associates at fair value through profit
and loss. However where the Company’s
management makes an irrevocable choice on
initial recognition to present fair value gains
and losses on specific equity investments
in other comprehensive income , there is
no subsequent reclassification, on sale or
otherwise, of fair value gains and losses to the
Statement of Profit and Loss.

Compound financial instruments:

Preference shares, which are non-convertible
and redeemable on a specific date, are
classified as compound financial instruments.

The fair value of the asset portion is determined
using a market interest rate. This amount is
recorded as a asset on an amortised cost
basis until extinguished on redemption of
the preference shares. The remainder of
the proceeds is attributable to the equity
component of the compound instrument. This
is recognised and included in deemed equity
investment, net of income tax effects, and not
subsequently measured.

(iii) Impairment of financial assets

The Company measures the expected credit
loss associated with its assets based on
historical trend, industry practices and the
business environment in which the entity
operates or any other appropriate basis. The
impairment methodology applied depends on
whether there has been a significant increase
in credit risk.

(iv) Income recognition
Interest income

Interest income from debt instruments is
recognised using the effective interest rate
method.

Dividends

Dividends are recognised in the Statement of
Profit and Loss only when the right to receive
payment is established.

(k) Impairment of non-financial assets

Intangible assets that have an indefinite useful
life are not subject to amortisation and are tested
annually for impairment, or more frequently if
events or changes in circumstances indicate that
they might be impaired. Other assets are tested
for impairment whenever events or changes in
circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is
recognised for the amount by which the asset’s
carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s
fair value less costs of disposal and value in use.
For the purpose of assessing impairment, assets
are grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely
independent of the cash inflows from other assets
or group of assets (cash-generating units). Assets
other than goodwill that suffered an impairment are
reviewed for possible reversal of the impairment at
the end of each reporting period.

(l) Non-current assets held for sale

Non-current assets are classified as held for sale if
their carrying amount will be recovered principally
through a sale transaction rather than through
continuing use and a sale is considered highly
probable. They are measured at the lower of their
carrying amount and fair value less costs to sell,
except for assets such as deferred tax assets, assets
arising from employee benefits, financial assets and
contractual rights under insurance contracts, which
are specifically exempt from this requirement.

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

(m) Derivative financial instruments

Derivative financial instruments such as forward
contracts, option contracts and cross currency
swaps, to hedge its foreign currency risks are initially
recognised at fair value on the date a derivative
contract is entered into and are subsequently re¬
measured at their fair value with changes in fair value
recognised in the Statement of Profit and Loss in the
period when they arise.

(n) Segment Reporting:

Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker.

(o) Borrowings

Borrowingsareinitially recognisedatnetoftransaction
costs incurred and 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.

(p) Borrowing costs

Borrowing costs consist of interest, ancillary costs
and other costs in connection with the borrowing of
funds and exchange differences arising from foreign
currency borrowings to the extent they are regarded
as an adjustment to interest costs.

Interest and other borrowing costs attributable to
qualifying assets are capitalised upto the date such
assets are ready for their intended use. Other interest
and borrowing costs are charged to Statement of
Profit and Loss.

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Mar 31, 2024

IB Material accounting policies and practices

(a) Basis of preparation of Financial Statements

(i) Basis of preparation of Financial Statements

The Company''s management has prepared Financial Statements which comprise of the Balance sheet as at 31 March 2024, the Statement of Profit and Loss
(including Other Comprehensive Income), the Statement of Cash Flow, and the Statement of Changes in Equity for the year ended, Including material accounting
policy Information and explanatory information (together hereinafter referred to as ''Financial Statements'').

The accounting policies are applied consistently to all the years presented in the financial statements,

(ii) Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:

(a) certain financial assets and liabilities that are measured at fair value;

(b) defined benefit plans - plan assets measured at fair value.

(c) share based payment.

(iii) Current and non-current classification

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle (twelve months) and other criteria set out in
the Schedule III to the Companies Act, 2013.

(iv) Rounding of amounts

All amounts disclosed in the Ind AS financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III Division II,
unless otherwise stated.

(b) Use of estimates and judgment

The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical
experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing
circumstances. Differences between actual results and estimates are recognised in the year in which the results are known/materialised.

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

(c) Property, plant and equipment (including CWIP)

All items of property, plant and equipment are stated at cost less depreciation and impairment, if any. Historical cost includes expenditure that Is directly
attributable to the acquisition of the items.

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

Depredation methods, estimated useful lives and residual value

Depreciation is provided on a Straight Line Method net of residual values, over the estimated useful lives of assets.

The Company depreciates Its property, plant and equipment over the useful life net of residual values in the manner prescribed in Schedule II of the Act, and
management believe that useful lives of assets are same as those prescribed In schedule II of the Act, except for certain assets under Plant and Machinery and
computers, useful life based on a technical evaluation, taking into consideration nature of Company''s business and past experience of usage, which is different
from that prescribed In Schedule II of the Act. The estimated useful lives of the property, plant and equipment are:

Leasehold improvements are amortised over the year of lease or estimated useful lives of such assets, whichever is lower, year of lease is either the primary lease
year or where the Company as a lessee has the right of renewal of lease, and it is intended to renew for further years, then such extended year.

Property plant and equipment costing Rs. 0.05 Lakhs or less are fully depreciated in the year of acquisition.The residual values are generally not more than 5% of
the original cost of the asset.

An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.

(d) Intangible assets

Computer software are stated at cost, less accumulated amortisation and Impairments, if any.

Amortisation method

The Company amortizes computer software with a future useful life using straight-line method over 3 years.

Gains and losses on disposal are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.

(e) Lease

The Company assesses at contract inception whether a contract is, or contains, a lease. That Is, if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration.

To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an
identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the
right to direct the use of the asset.

As a Lessee

The Company''s lease asset classes primarily consist of leases for Land and Buildings. The Company assesses whether a contract is or contains a lease, at inception
of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a year of time in exchange for
consideration.

At the date of commencement of the lease, the Company recognises a right-of-use asset ("ROU") and a corresponding lease liability for all lease arrangements in
which it is a lessee, except for leases with a term of twelve months or less (short term leases) and leases of low value assets. For these short term and leases of
low value assets, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.

The lease liability is initially measured at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit In the
lease or, if not readily determinable, using the incremental borrowing rates. The lease liability is subsequently remeasured by increasing the carrying amount to

reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made.

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to

the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation

and impairment losses, if any. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and
useful life of the underlying asset.

A lease liability is remeasured upon the occurrence of certain events such as a change in the lease term or a change in an index or rate used to determine lease
payments. The remeasurement normally also adjusts the leased assets.

(f) Cash and Cash Equivalents

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

(g) Trade Receivables

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business and reflects the Company''s
unconditional right to consideration (that is, payment is due only on the passage of time). Trade receivables are recognised initially at the transaction price as they
do not contain significant financing components. The Company holds the trade receivables with the objective of collecting the contractual cash flows and therefore
measures them subsequently at amortised cost using the effective interest method, less loss allowance.

(h) Inventories

Inventories of Raw Materials, Packing Materials, Goods In transit, Stock-in-trade, Stores and spares, Work-in-Progress and Finished Goods are stated ''at cost or net
realisable value, whichever is lower¹. Cost comprise all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present
location and condition. Cost formula used is ''Weighted Average cost''. Due allowance is estimated and made for defective and obsolete items, wherever necessary.

(i) Investments and other financial assets

Classification

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

* those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement of Profit and Loss), and

* those measured at amortised cost.

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

For assets measured at fair value, gains and losses will either be recorded in the Statement of Profit and Loss or other comprehensive income. For investments in
debt instruments, this will depend on the business model in which the investment Is held.

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

Recognition

Regular way purchases and sales of financial assets are recognised on trade-date, being the date on which the Company commits to purchase or sale financial
assets.

Measurement

At initial recognition, the Company measures a financial asset (excluding trade receivables which do not contain a significant financing component) at its fair value
plus, In the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Debt instruments:

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

* Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are
measured at amortised cost. Interest income from these finqncjial assets is included in other income using the effective interest rate method.

¦ -

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

* Fair value through profit and loss: Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through Statement of Profit
and Loss. Interest income from these financial assets is included in other income.

Equity instruments:

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

Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. The impairment methodology
applied depends on whether there has been a significant increase in credit risk.

For trade receivables only, the Company applies the simplified approach required by Ind AS 109, which requires expected lifetime losses to be recognised from
Initial recognition of the receivables.

Derecognition

A financial asset Is derecognised only when

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

- retains the contractual rights to receive the cash flows to one or more recipients.

Where the entity has transferred an asset, the company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset.

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

Income recognition
Interest income

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be
measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate.

Dividends

Dividends are recognised in the Statement of Profit and Loss only when the right to receive payment is established.

(j) Impairment of non-financial assets

Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events
or changes in circumstances indicate that they might be Impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purpose of assessing impairment, assets are
grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or group of
assets (cash-generating units). Assets other than goodwill that suffered an Impairment are reviewed for possible reversal of the impairment at the end of each
reporting period.