6.15 Provisions and Contingent Liabilities:

A provision is recognised when the Company has a present obligation as a result of past
events and it is probable that an outflow of resources will be required to settle the obligation
in respect of which a reliable estimate can be made. If effect of the time value of money is
material, provisions are discounted using an appropriate discount 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 liabilities are disclosed in the Notes to the Financial Statements. Contingent
liabilities are disclosed for:

i) Possible obligations which will be confirmed only by future events not wholly within the
control of the Company, or

ii) Present obligations arising from past events where it is not probable that an outflow of
resources will be required to settle the obligation or a reliable estimate of the amount of
the obligation cannot be made.

iii) Details of dues of Income Tax, Sales Tax, Service Tax, Excise Duty and Value Added Tax
which have not been deposited as at March 31, 2025 on account of dispute are given
below:

6.16 Financial instruments, financial assets, financial liabilities and Equity instruments.

I) Financial Assets

A. Initial recognition and measurement: Financial assets and financial liabilities are
recognised when the Company becomes a party to the contractual provisions of the
relevant instrument and are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities,
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.

Recognition: Financial assets includes Investments, Trade receivables, Advances, Security
Deposits, Cash and cash equivalents. Such assets are initially recognised at transaction
price when the Company becomes party to contractual obligations. The transaction price
includes transaction costs unless the assets are being fair valued through the Statement of
Profit and Loss.

Classification: Management determines the classification of an asset at initial
recognition depending on the purpose for which the assets were acquired. The
subsequent measurement of financial assets depends on such classification.

A. Initial recognition and measurement: Financial assets and financial liabilities are

recognised when the Company becomes a party to the contractual provisions of the
relevant instrument and are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities,
which are not at fairvalue through profit or loss, are adjusted to the fairvalue on initial
recognition. Purchase and sale of financial assets are recognised using trade date
accounting.

Recognition: Financial assets includes Investments, Trade receivables, Advances,
Security Deposits, Cash and cash equivalents. Such assets are initially recognised at
transaction

price when the Company becomes party to contractual obligations. The transaction price
includes transaction costs unless the assets are being fair valued through the Statement
of Profit and Loss.

B. Subsequent measurement

a) Financial assets carried at amortised cost (AC)

A financial asset are 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 on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

b) Financial assets at fairvalue through other comprehensive income (FVTOCI)

Fair value through other comprehensive income (FVTOCI), where the financial assets are
held not only for collection of cash flows arising from payments of principal and interest
but also from the sale of such assets. Such assets are subsequently measured at fair value,
with unrealised gains and losses arising from changes in the fairvalue being recognised in
other comprehensive income.

c) Financial assets at fairvalue through profit or loss (FVTPL)

Fair value through profit or loss (FVTPL), where the assets are managed in accordance with
an approved investment strategy that triggers purchase and sale decisions based on the
fair value of such assets. Such assets are subsequently measured at fair value, with
unrealised gains and losses arising from changes in the fairvalue being recognised in the
Statement of Profit and Loss in the period in which they arise.

Trade receivables, Advances, Security Deposits, Cash and cash equivalents etc. are classified
for measurement at amortised cost while investments may fall under any of the aforesaid
classes.

Equity investments:

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments
which are held for trading are classified as FVTPL. For all other equity instruments, the
Company decides to classify the same either at fair value through other comprehensive
income (FVTOCI) or FVTPL. The Company makes such election on an instrument-by¬
instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value
changes on the instrument, excluding dividends, are recognized in other comprehensive
income (OCI). There is no recycling of the amounts from OCI to Statement of Profit and Loss,
even on sale of such investments. Equity instruments included within the FVTPL category are
measured at fair value with all changes recognized in the Statement of Profit and Loss.

The Company has opted to continue with the carrying value of all its equity investments as
recognized in the financial statements as at the date of transition to Ind AS, measured as per
the previous GAAP and use that as the deemed cost as at the transition date pursuant to the
exemption under Ind AS 101.

Derivative financial instruments

The Company uses derivative financial instruments, such as foreign exchange forward
contracts, interest rate swaps and currency options to manage its exposure to interest rate
and foreign exchange risks. Such derivative financial instruments are initially recognised at fair
value on the date on which a derivative contract is entered into and are subsequently re¬
measured at fair value. Derivatives are carried as financial assets when the fair value is positive
and as financial liabilities when the fair value is negative.

Hedge Accounting

The Company uses foreign currency forward contracts to hedge its risks associated with
foreign currency fluctuations relating to highly probable forecast transactions. The Company
designates such forward contracts in a cash flow hedging relationship by applying the hedge
accounting principles. These forward contracts are stated at fair value at each reporting date.
Changes in the fair value of these forward contracts that are designated and effective as
hedges of future cash flows are recognised directly in Other Comprehensive Income (OCI) and
accumulated in "Cash Flow Hedge Reserve Account" under Reserves and Surplus, net of
applicable deferred income taxes and the ineffective portion is recognised immediately in the
Statement of Profit and Loss.

Amounts accumulated in the "Cash Flow Hedge Reserve Account" are reclassified to the
Statement of Profit and Loss in the same period during which the forecasted transaction
affects Statement of Profit and Loss. Hedge accounting is discontinued when the hedging
instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge
accounting. For forecasted transactions, any cumulative gain or loss on the hedging
instrument recognised in "Cash Flow Hedge Reserve Account" is retained until the forecasted
transaction occurs. If the forecasted transaction is no longer expected to occur, the net
cumulative gain or loss recognises.

Offsetting of financial instruments

Financial assets and financial liabilities are offseted 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.

Impairment: The Company assesses at each reporting date whether a financial asset (or a
group of financial assets) such as investments, trade receivables, advances and security
deposits held at amortised cost and financial assets that are measured at fair value through
other comprehensive income are tested for impairment based on evidence or information
that is available without undue cost or effort. Expected credit losses are assessed and loss
allowances are recognised if the credit quality of the financial asset has deteriorated
significantly since initial recognition.

Reclassification: When and only when the business model is changed, the Company shall
reclassify all affected financial assets prospectively from the reclassification date as
subsequently measured at amortised cost, fair value through other comprehensive income,
fair value through profit or loss without restating the previously recognised gains, losses or
interest and in terms of the reclassification principles laid down in the Ind AS relating to
Financial Instruments.

De-recognition: Financial assets are derecognised when the right to receive cash flows from
the assets has expired, or has been transferred, and the Company has transferred amounts
collected on behalf of third parties, such as sales tax and value added tax.

ii) Financial liabilities

A. Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly
attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit
and Lossas finance cost.

B. Subsequent measurement

Financial liabilities are carried at amortized 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.

6.17. Investments in subsidiary, associates and joint venture:

The Company measures its investments in subsidiary at cost less impairment. The company
assesses investments for impairment whenever events or changes in circumstances indicate
that the carrying value of an investment may not be recoverable. If any such indication of
impairment exists, the company makes an estimate of its recoverable amount. Where the
carrying amount of an investment exceeds its recoverable amount, the investment is
considered impaired and is written down to its recoverable amount.

i) Non-Current investments are valued at cost. However, provision for diminution in value is
made to recognize a decline in the value, other than temporary.

ii) Current investments are valued at lower of cost or fair value.

6.18 Cash and cash equivalent

In the cash flow statement, cash and cash equivalent include cash in hand, cheques and drafts
in hand, balances with bank and deposit held at call with financial institution, shortterm highly
liquid investments with original maturities of three months or less they are readily convertible
to known amount of cash and which are subject to an insignificant risk of changes in value.
Bank overdrafts are shown as borrowing in the current liabilities in the balance sheet and form
part of the financial activity in the cash flow statement. Book overdrafts are shown as
borrowing in other financial liabilities in the balance sheet and form part of financing activity
in the cash flow statement. Book overdrafts are shown as other financial liabilities in the
balance sheet and form part of the operating activity in the cash flow statement.

6.19 Earnings per share:

Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted
average number of equity shares outstanding during the year. The weighted average number
of equity shares outstanding during the year is adjusted for the events for bonus issue, bonus
element in a rights issue to existing shareholders, share split and reverse share split
(consolidation of shares). Diluted earnings per share is computed by dividing the profit/(loss)
after tax as adjusted for dividend, interest and other charges to expense or income (net of any
attributable taxes) relating to the dilutive potential equity shares, by the weighted average
number of equity shares considered for deriving basic earnings per share and the weighted
average number of equity shares which could have been issued on conversion of all dilutive
potential equity shares.