Notes to Accounts of Supriya Lifescience Ltd.

q) Provisions, Contingent liabilities, Contingent
assets and Commitments:

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. The expense relating
to a provision is presented in the statement of
profit and loss.

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. When discounting is used,
the increase in the provision due to the passage
of time is recognised as a finance cost.

Contingent liability is disclosed in the case of:

• A present obligation arising from past
events, when it is not probable that an
outflow of resources will be required to
settle the obligation;

• A present obligation arising from past events,
when no reliable estimate is possible;

• A present obligation arising from past
events, unless the probability of outflow of
resources is remote.

Commitments include the amount of purchase
order (net of advances) issued to parties for
completion of assets.

Provisions, contingent liabilities, contingent
assets and commitments are reviewed at each
balance sheet date.

r) Employee Benefits

Retirement benefit in the form of provident
fund, pension fund and superannuation fund are
defined contribution schemes. The Company
has no obligation, other than the contribution
payable to such schemes. The Company
recognises contribution payable to such schemes
as an expense, when an employee renders the
related service. If the contribution payable to the
schemes for service received before the balance
sheet date exceeds the contribution already paid,
the deficit payable to the schemes is recognised as
a liability after deducting the contribution already
paid. 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, for example, a reduction in future
payment or a cash refund.

The Company operates a defined benefit gratuity
plan, which requires contributions to be made
to a separately administered fund. The cost of
providing benefits under the defined benefit
plan is determined using the projected unit credit
method. Liability for gratuity as at the year-end is
provided on the basis of actuarial valuation.

Remeasurements, comprising of actuarial
gains and losses and the return on plan assets
(excluding amounts included in net interest on
the net defined benefit liability), are recognised
immediately in the balance sheet with a
corresponding debit or credit to retained earnings
through OCI in the period in which they occur.
Remeasurements are not reclassified to profit or
loss in subsequent periods.

Net interest is calculated by applying the discount
rate to the net defined benefit liability or asset.
The Company recognises the following changes in
the net defined benefit obligation as an expense
in the statement of profit and loss:

• Service costs comprising current service
costs; and

• Net interest expense or income

Accumulated leave, which is expected to be
utilised within the next 12 months, is treated
as short-term employee benefit. The Company
measures the expected cost of such absences
as the additional amount that it expects to pay
as a result of the unused entitlement that has
accumulated at the reporting date.

s) 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.

i. 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.

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

• Financial assets at amortised cost.

• Financial assets at fair value.

When assets are measured at fair value,
gains and losses are either recognised
entirely in the statement of profit and loss
(i.e. fair value through profit or loss), or
recognised in other comprehensive income
(i.e. fair value through other comprehensive
income).

A financial asset that meets the following
two conditions is measured at amortised
cost (net of any write down for impairment)
unless the asset is designated at fair
value through profit and loss under fair
value option.

• Business model test: The objective
of the Company''s business model is
to hold the financial asset to collect
the contractual cash flows (rather
than to sell the instrument prior to its
contractual maturity to realize its fair
value changes).

• Cash flow characteristics test: The
contractual terms of the financial
asset give rise on specified dates to
cash flows that are solely payments of
principal and interest on the principal
amount outstanding.

A financial asset that meets the following
two conditions is measured at fair value
through other comprehensive income unless
the asset is designated at fair value through
profit and loss under fair value option.

• Business model test: The financial
asset is held within a business model
whose objective is achieved by both
collected contractual cash flows and
selling financial instruments.

• Cash flow characteristics test: The
contractual terms of the financial
asset give rise on specified dates to
cash flows that are solely payments of
principal and interest on the principal
amount outstanding.

Derecognition

When 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'' arrangement; it evaluates if and to
what extent it has retained the risks and rewards
of ownership.

A financial asset (or, where applicable, a part of
a financial asset or part of a Company of similar
financial assets) is primarily derecognised when:

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

• Based on above evaluation, 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 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.

Continuing involvement that takes the form of a
guarantee over the transferred asset is measured
at the lower of the original carrying amount of the
asset and the maximum amount of consideration
that the Company could be required to repay.

Impairment of financial assets

In accordance with Ind AS 109, the Company
applies expected credit loss (ECL) model for
measurement and recognition of impairment
loss on the following financial assets and credit
risk exposure:

a) Trade receivables that result from transactions
those are within the scope of Ind AS 18
The application of simplified approach does
not require the Company to track changes in
credit risk. Rather, it recognises impairment
loss allowance based on lifetime ECLs at each
reporting date, right from its initial recognition.

For recognition of impairment loss on other
financial assets and risk exposure, the Company
determines that whether there has been a
significant increase in the credit risk since initial
recognition. If credit risk has not increased
significantly, 12-month ECL is used to provide
for impairment loss. However, if credit risk has
increased significantly, lifetime ECL is used.
If, in a subsequent period, credit quality of
the instrument improves such that there is no
longer a significant increase in credit risk since
initial recognition, then the entity reverts to
recognising impairment loss allowance based on
12-month ECL.

ECL is the difference between all contractual cash
flows that are due to the Company in accordance
with the contract and all the cash flows that the
entity expects to receive (i.e., all cash shortfalls),
discounted at the original EIR. When estimating
the cash flows, an entity is required to consider:

• All contractual terms of the financial
instrument (including prepayment,
extension, call and similar options) over the
expected life of the financial instrument.
However, in rare cases when the expected
life of the financial instrument cannot be
estimated reliably, then the entity is required
to use the remaining contractual term of the
financial instrument

• Cash flows from the sale of collateral held or
other credit enhancements that are integral
to the contractual terms

ECL impairment loss allowance (or reversal)
recognised during the period is recognised as
income/ expense in the statement of profit and
loss. This amount is reflected in the statement
of profit and loss in other expenses. The
balance sheet presentation for various financial
instruments is described below:

• Financial assets measured as at amortized
cost, trade receivables and lease receivables:
ECL is presented as an allowance, i.e., as an
integral part of the measurement of those
assets in the balance sheet. The allowance
reduces the net carrying amount. Until the
asset meets write-off criteria, the Company
does not reduce impairment allowance from
the gross carrying amount.

• Financial Liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair
value through profit or loss or at amortised
cost, as appropriate.

All financial liabilities are recognised initially
at fair value and, in the case of loans and
borrowings, net of directly attributable
transaction costs.

The Company''s financial liabilities include
trade payables, lease obligations, and
other payables.

Subsequent measurement

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

Financial liabilities at fair value through
profit or loss

Financial liabilities at fair value through
profit or loss include financial liabilities held
for trading and financial liabilities designated
upon initial recognition as at fair value
through profit or loss. 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 profit or loss.

The Company has not designated any
financial liability as at fair value through
profit and loss.

Financial liabilities at amortised cost

After initial recognition, interest-bearing
loans and borrowings and other payables
are subsequently measured at amortised
cost using the EIR method. Gains and
losses are recognised in profit or loss when
the liabilities are derecognised as well as
through the EIR 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
EIR. The EIR 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.

• Offsetting of financial instruments

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

• Ordinary shares

Ordinary shares are classified as equity.
Incremental costs directly attributable to
the issuance of new ordinary shares and
share options are recognised as a deduction
from equity, net of any tax effects.

t) Cash and cash equivalents

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

For the purpose of the statement of cash flows,
cash and cash equivalents consist of cash and
short-term deposits, as defined above, net
of outstanding bank overdrafts as they are
considered an integral part of the Company''s
cash management.

u) Earnings per equity share

The Company presents basic and diluted earnings
per share (“EPS”) data for its equity shares.
Basic EPS is calculated by dividing the profit or
loss attributable to equity shareholders of the
Company by the weighted average number of
equity shares outstanding during the period.
The diluted EPS is calculated on the same basis
as basic EPS, after adjusting for the effects of
potential dilutive equity shares unless the effect
of the potential dilutive equity shares is anti¬
dilutive.

(i) Foreign Currency Risk

The Company operates internationally and portion of the business is transacted in several currencies and consequently
the Company is exposed to foreign exchange risk through its sales and services in overseas and purchases from
overseas suppliers in various foreign currencies.

NOTE: 35 FINANCIAL RISK MANAGEMENT

Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s
financial risk management policy is set by the Managing Board.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price
of a financial instrument.

The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates,
equity prices and other market changes that affect market risk sensitive instruments.

Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign
currency receivables, payables and loans and borrowings.

(ii) Equity Price Risk

The company''s investment portfolio consists of investments in quoted instruments like mutual funds carried at fair
value in the balance sheet.

(iii) Credit risk

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To
manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial
condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual
risk limits are set accordingly.

The company considers the probability of default upon initial recognition of asset and whether there has been a
significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a
significant increase in credit risk the company compares the risk of a default occurring on the asset as at the reporting
date with the risk of default as at the date of initial recognition.

(iv) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a
reasonable price.

The Company''s corporate treasury department is responsible for liquidity, funding as well as settlement management.

In addition, processes and policies related to such risks are overseen by senior management. Management monitors
the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

The table below provides details regarding the remaining contractual maturities of significant financial liabilities at
the reporting date based on contractual undiscounted payments.

(v) Capital management

For the purposes of the Company''s Capital Management, capital includes issued capital and all other equity reserves.

The primary objective of the Company''s Capital Management is to maximise shareholder value. The company manages
its capital structure and makes adjustments in the light of changes in economic environment and the requirements
of the financial covenants. The company does not have gearing as its cash and reserves are substantial to cover
up borrowings.

NOTE: 38 EXCEPTIONAL ITEM

Effective November 21, 2025, The Government of India has consolidated multiple existing labour legislations into a unified
framework comprising four Labour Codes collectively referred to as the ‘New Labour Codes''. The Company has assessed
the financial implications of these changes which has resulted in increase in gratuity liability arising out of past service cost
and increase in leave liability by Rs. 4.58 Millions primarily arising due to change in definition of “wages” for employees and
contract labours.Considering the materiality and non-recurring nature of this impact, the Company has presented such
incremental impact under “Exceptional Item” in the financials for the year ended March 31, 2026. Refer note 36.

q) Provisions, Contingent liabilities, Contingent assets and Commitments:

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. The expense
relating to a provision is presented in the statement of profit and loss.

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. When discounting is used, the increase in
the provision due to the passage of time is recognised as a finance cost.

Contingent liability is disclosed in the case of:

¦ A present obligation arising from past events, when it is not probable that an outflow of resources will
be required to settle the obligation;

¦ A present obligation arising from past events, when no reliable estimate is possible;

¦ A present obligation arising from past events, unless the probability of outflow of resources is remote.

Commitments include the amount of purchase order (net of advances) issued to parties for completion of
assets.Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance
sheet date.

r) Employee Benefits

Retirement benefit in the form of provident fund, pension fund and superannuation fund are defined
contribution schemes. The Company has no obligation, other than the contribution payable to such schemes.
The Company recognises contribution payable to such schemes as an expense, when an employee renders

the related service. If the contribution payable to the schemes for service received before the balance sheet
date exceeds the contribution already paid, the deficit payable to the schemes is recognised as a liability
after deducting the contribution already paid. 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, for example, a reduction in future payment or a cash refund.

The Company operates a defined benefit gratuity plan, which requires contributions to be made to a
separately administered fund. The cost of providing benefits under the defined benefit plan is determined
using the projected unit credit method. Liability for gratuity as at the year-end is provided on the basis of
actuarial valuation.

Remeasurements, comprising of actuarial gains and losses and the return on plan assets (excluding amounts
included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet
with a corresponding debit or credit to retained earnings through OCI in the period in which they occur.
Remeasurements are not reclassified to profit or loss in subsequent periods.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The
Company recognises the following changes in the net defined benefit obligation as an expense in the
statement of profit and loss:

¦ Service costs comprising current service costs; and

¦ Net interest expense or income

Accumulated leave, which is expected to be utilised within the next 12 months, is treated as short-term
employee benefit. The Company measures the expected cost of such absences as the additional amount
that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

s) 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.

i. 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.

Subsequent measurement

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

¦ Financial assets at amortised cost.

¦ Financial assets at fair value.

When assets are measured at fair value, gains and losses are either recognised entirely in the statement
of profit and loss (i.e. fair value through profit or loss), or recognised in other comprehensive income (i.e.
fair value through other comprehensive income).

A financial asset that meets the following two conditions is measured at amortised cost (net of any
write down for impairment) unless the asset is designated at fair value through profit and loss under fair
value option.

¦ Business model test: The objective of the Company''s business model is to hold the financial asset
to collect the contractual cash flows (rather than to sell the instrument prior to its contractual
maturity to realize its fair value changes).

¦ Cash flow characteristics test: The contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.

A financial asset that meets the following two conditions is measured at fair value through other
comprehensive income unless the asset is designated at fair value through profit and loss under fair
value option.

¦ Business model test: The financial asset is held within a business model whose objective is achieved
by both collected contractual cash flows and selling financial instruments.

¦ Cash flow characteristics test: The contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.

Derecognition

When 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'' arrangement; it evaluates if and to what extent it has retained the risks and rewards
of ownership.

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial
assets) is primarily derecognised when:

¦ The rights to receive cash flows from the asset have expired, or

¦ Based on above evaluation, 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 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.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and the maximum amount of consideration that the
Company could be required to repay.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement
and recognition of impairment loss on the following financial assets and credit risk exposure:

a) Trade receivables that result from transactions those are within the scope of Ind AS 18

The application of simplified approach does not require the Company to track changes in credit risk.
Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right
from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company
determines that whether there has been a significant increase in the credit risk since initial recognition.
If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss.
However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period,
credit quality of the instrument improves such that there is no longer a significant increase in credit
risk since initial recognition, then the entity reverts to recognising impairment loss allowance based
on 12-month ECL.

ECL is the difference between all contractual cash flows that are due to the Company in accordance
with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls),
discounted at the original EIR. When estimating the cash flows, an entity is required to consider:

¦ All contractual terms of the financial instrument (including prepayment, extension, call and
similar options) over the expected life of the financial instrument. However, in rare cases when
the expected life of the financial instrument cannot be estimated reliably, then the entity is
required to use the remaining contractual term of the financial instrument

¦ Cash flows from the sale of collateral held or other credit enhancements that are integral to the
contractual terms

ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/
expense in the statement of profit and loss. This amount is reflected in the statement of profit
and loss in other expenses. The balance sheet presentation for various financial instruments is
described below:

¦ Financial assets measured as at amortized cost, trade receivables and lease receivables: ECL
is presented as an allowance, i.e., as an integral part of the measurement of those assets in the
balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-off
criteria, the Company does not reduce impairment allowance from the gross carrying amount.

ii. Financial Liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss or at amortised cost, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings, net of
directly attributable transaction costs.

The Company''s financial liabilities include trade payables, lease obligations, and other payables.
Subsequent measurement

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

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition as at fair value through profit or loss. 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 profit or loss.

The Company has not designated any financial liability as at fair value through profit and loss.

Financial liabilities at amortised cost

After initial recognition, interest-bearing loans and borrowings and other payables are subsequently
measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss
when the liabilities are derecognised as well as through the EIR 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 EIR. The EIR 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.

Offsetting of financial instruments

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

Ordinary shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new
ordinary shares and share options are recognised as a deduction from equity, net of any tax effects.

t) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of
the Company''s cash management.

u) Earnings per equity share

The Company presents basic and diluted earnings per share ("EPS") data for its equity shares. Basic EPS is
calculated by dividing the profit or loss attributable to equity shareholders of the Company by the weighted
average number of equity shares outstanding during the period. The diluted EPS is calculated on the same
basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless the effect of the
potential dilutive equity shares is anti-dilutive.

33.4 Additional information on extension / termination options.

Extension and termination options are included in a number of property lease arrangements of the Company. These
are used to maximise operational flexibility in terms of managing the assets used in the Company''s operations. The
majority of extension and termination options held are exercisable based on mutual consent of the Company and
respective lessors.

NOTE: 37 FINANCIAL RISK MANAGEMENT

Company''s financial risk management is an integral part of how to plan and execute its business strategies. The
Company''s financial risk management policy is set by the Managing Board.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the
price of a financial instrument.

The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange
rates, equity prices and other market changes that affect market risk sensitive instruments.

Market risk is attributable to all market risk sensitive financial instruments including investments and deposits,
foreign currency receivables, payables and loans and borrowings.

NOTE: 37 FINANCIAL RISK MANAGEMENT (Contd.)

(i) Foreign Currency Risk

The Company operates internationally and portion of the business is transacted in several currencies and
consequently the Company is exposed to foreign exchange risk through its sales and services in overseas and
purchases from overseas suppliers in various foreign currencies.

(ii) Equity Price Risk

The company''s investment portfolio consists of investments in quoted instruments like mutual funds carried at
fair value in the balance sheet.

(iii) Credit risk

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed.
To manage this, the Company periodically assesses the financial reliability of customers, taking into account
the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts
receivable. Individual risk limits are set accordingly.

The company considers the probability of default upon initial recognition of asset and whether there has been
a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether
there is a significant increase in credit risk the company compares the risk of a default occurring on the asset as
at the reporting date with the risk of default as at the date of initial recognition.

(iv)Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or
at a reasonable price.

The Company''s corporate treasury department is responsible for liquidity, funding as well as
settlement management.

In addition, processes and policies related to such risks are overseen by senior management. Management
monitors the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

The table below provides details regarding the remaining contractual maturities of significant financial liabilities
at the reporting date based on contractual undiscounted payments.

Maturity profile of financial liabilities

The table below provides details regarding the remaining contractual maturities of significant financial liabilities
at the reporting date based on contractual undiscounted payments.

(b) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of H 2 per share. Each holder of equity share is entitled to one vote per share.

In event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

NOTE: 37 - FINANCIAL RISK MANAGEMENT

Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Managing Board.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument.

The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments.

Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.

(i) Foreign Currency Risk

The Company operates internationally and portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk through its sales and services in overseas and purchases from overseas suppliers in various foreign currencies.

(ii) Equity Price Risk

The company''s investment portfolio consists of investments in quoted instruments like mutual funds carried at fair value in the balance sheet.

(iii) Credit risk

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition.

It considers available reasonable and supportive forwarding-looking information such as :

Expected Credit Loss Assessment

Exposures to customers outstanding at the end of each reporting period are reviewed by the company to determine incurred and expected credit losses. Management believes that the unimpaired amount that are past due are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk.

(iv) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price.

The Company''s corporate treasury department is responsible for liquidity, funding as well as settlement management.

In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

The table below provides details regarding the remaining contractual maturities of significant financial liabilities at the reporting date based on contractual undiscounted payments.

Maturity profile of financial liabilities

The table below provides details regarding the remaining contractual maturities of significant financial liabilities at the reporting date based on contractual undiscounted payments.

(v) Capital management

For the purposes of the Company''s Capital Management, capital includes issued capital and all other equity reserves.

The primary objective of the Company''s Capital Management is to maximise shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants. The company does not have gearing as its cash and reserves are substantial to cover up borrowings.

Actuarial Assumptions

We have used actuarial assumptions selected by the Company. The Company has been advised that the assumptions selected should be unbiased and mutually compatible and should reflect the Company''s best estimate of the variables of the future. The Company has also been advised to consider the requirement of Para 44 of IndAS 19 in this regard.

The discount rate indicated above reflects the estimated timing and currency of benefit payments. It is based on the yields/ reates available on applicable bonds as on the current valuation date.

The salary growth rate indicated above is the Company''s best estimate of an increase in salary of the employees in future years, determined considering the general trend in inflation, senority, promotions, past experience and other relevant factors such as demand and supply in employment market, etc.

Provisions, Contingent liabilities, Contingent assets and Commitments:

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. The expense relating to a provision
is presented in the statement of profit and loss.

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. When discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.

Contingent liability is disclosed in the case of:

• A present obligation arising from past events, when it is not probable that an outflow of resources will be
required to settle the obligation;

• A present obligation arising from past events, when no reliable estimate is possible;

• A present obligation arising from past events, unless the probability of outflow of resources is remote.
Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

t) Employee Benefits

Retirement benefit in the form of provident fund, pension fund and superannuation fund are defined contribution
schemes. The Company has no obligation, other than the contribution payable to such schemes. The Company
recognises contribution payable to such schemes as an expense, when an employee renders the related service. If
the contribution payable to the schemes for service received before the balance sheet date exceeds the contribution
already paid, the deficit payable to the schemes is recognised as a liability after deducting the contribution already
paid. 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, for example, a reduction
in future payment or a cash refund.

The Company operates a defined benefit gratuity plan, which requires contributions to be made to a separately
administered fund. The cost of providing benefits under the defined benefit plan is determined using the projected
unit credit method. Liability for gratuity as at the year-end is provided on the basis of actuarial valuation.

Remeasurements, comprising of actuarial gains and losses and the return on plan assets (excluding amounts
included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a
corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements
are not reclassified to profit or loss in subsequent periods.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company
recognises the following changes in the net defined benefit obligation as an expense in the statement of profit and
loss:

• Service costs comprising current service costs; and

• Net interest expense or income

Accumulated leave, which is expected to be utilised within the next 12 months, is treated as short-term employee
benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay
as a result of the unused entitlement that has accumulated at the reporting date.

u) 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.

i. 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.

Subsequent measurement

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

• Financial assets at amortised cost.

• Financial assets at fair value.

When assets are measured at fair value, gains and losses are either recognised entirely in the statement of profit
and loss (i.e. fair value through profit or loss), or recognised in other comprehensive income (i.e. fair value
through other comprehensive income).

A financial asset that meets the following two conditions is measured at amortised cost (net of any write down
for impairment) unless the asset is designated at fair value through profit and loss under fair value option.

• Business model test: The objective of the Company''s business model is to hold the financial asset to collect
the contractual cash flows (rather than to sell the instrument prior to its contractual maturity to realize its fair
value changes).

• Cash flow characteristics test: The contractual terms of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and interest on the principal amount outstanding.

A financial asset that meets the following two conditions is measured at fair value through other comprehensive
income unless the asset is designated at fair value through profit and loss under fair value option.

• Business model test: The financial asset is held within a business model whose objective is achieved by both
collected contractual cash flows and selling financial instruments.

• Cash flow characteristics test: The contractual terms of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and interest on the principal amount outstanding.

Derecognition

When 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'' arrangement;
it evaluates if and to what extent it has retained the risks and rewards of ownership.

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets)
is primarily derecognised when:

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

• Based on above evaluation, 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 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.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of
the original carrying amount of the asset and the maximum amount of consideration that the Company could
be required to repay.

impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and
recognition of impairment loss on the following financial assets and credit risk exposure:

a) Trade receivables that result from transactions those are within the scope of Ind AS 18

The application of simplified approach does not require the Company to track changes in credit risk. Rather,
it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial
recognition.

v) Impact of COVID-19 (Pandemic)

The Company has taken into account all the possible impacts of COVID-19 in preparation of these standalone
financial statements, including but not limited to its assessment of, liquidity and going concern assumption,
recoverable values of its financial and non-financial assets, impact on revenue recognition owing to changes in
cost budgets of fixed price contracts, impact on leases and impact on effectiveness of its hedges. The Company
has carried out this assessment based on available internal and external sources of information upto the date of
approval of these standalone financial statements and believes that the impact of COVID-19 is not material to these
standalone financial statements and expects to recover the carrying amount of its assets. The impact of COVID-19
on the standalone financial statements may differ from that estimated as at the date of approval of these standalone
financial statements owing to the nature and duration of COVID-19.