Provisions, Contingent Liabilities and Contingent Assets

i) Provisions

Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event and 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. Provisions are determined by discounting the expected future cash flows
(representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre¬
tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding
of the discount is recognized as finance cost.

ii) Onerous Contracts

Present obligations arising under onerous contracts are recognized and measured as provisions. An onerous contract is
considered to exist when a contract under which the unavoidable costs of meeting the obligations exceed the economic
benefits expected to be received from it.

iii) Contingent Liabilities

Contingent liability is a possible obligation arising from past events and the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a
present obligation that arises from past events but is not recognized because it is not possible that an outflow of resources
embodying economic benefit will be required to settle the obligations or reliable estimate of the amount of the obligations
cannot be made. The Company discloses the existence of contingent liabilities in other Notes to Financial Statements.

iv) Contingent Assets

Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow of
economic benefits. Contingent Assets are not recognized though are disclosed, where an inflow of economic benefits is
probable.

3.8 Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can
be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration
received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on
behalf of the Government.

a) Sale of Goods

Sale of goods is recognised at the point in time when control of the goods is transferred to the customer. The revenue is
measured on the basis of the consideration defined in the contract with a customer, including variable consideration, such as
discounts, volume rebates, or other contractual reductions. As the period between the date on which the Company transfers
the promised goods to the customer and the date on which the customer pays for these goods is generally one year or less,
no financing components are taken into account.

b) Sale of Services

In contracts involving the rendering of services, revenue is measured using the completed service method.

c) Other Operating Revenue

Export incentive and subsidies are recognized when there is reasonable assurance that the Company will comply with the
conditions and the incentive will be received. Insurance & other claims, where quantum of accruals cannot be ascertained with
reasonable certainty are recognized as income only when revenue is virtually certain which generally coincides with receipt/
acceptance.

d) Interest Income

For all financial instruments measured at amortized cost, Interest income is recorded using the effective interest rate (EIR). EIR is
the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter
period, where appropriate, to the gross carrying amount of the financial asset.

e) Dividend Income

Dividend Income from investments is recognized when the Company's right to receive payment has been established.

3.9 Leases

The Company assesses whether a contract is or contains a lease at inception of the contract. A contract is or contains a lease 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 the 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

The Company accounts for each lease component within the contract as a lease separately from non-lease components of the
contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of
the lease component and the aggregate stand-alone price of the non-lease components.

The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease
commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial
measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease
incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and
removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently
measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement
of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the
lease term or useful life of right-of-use asset.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date
of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined.
If that rate cannot be readily determined, the Company uses incremental borrowing rate. For leases with reasonably similar
characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease
or the incremental borrowing rate for the portfolio as a whole. The lease payments shall include fixed payments, variable lease
payments, residual value guarantees, exercise price of a purchase option where the Company is reasonably certain to exercise
that option and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to
terminate the lease. 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 and re-measuring the carrying amount to reflect
any reassessment or lease modifications or to reflect revised in-substance fixed lease payments. The Company recognises the
amount of the re-measurement of lease liability due to modification as an adjustment to the right-of-use asset and statement of
profit and loss depending upon the nature of modification. Where the carrying amount of the right-of-use asset is reduced to zero
and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining amount of the
re-measurement in statement of profit and loss.

The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease
term of 36 months or less and leases for which the underlying asset is of low value. The lease payments associated with these
leases are recognised as an expense on a straight-line basis over the lease term.

3.10 Income tax

Income tax expense comprises of current and deferred tax. Current tax and deferred tax is recognized in the statement of profit
and loss except to the extent that it relates to items recognized directly in equity or in other comprehensive income.

i. Current tax

Current tax liabilities (or assets) for the current and prior periods are measured at the amount expected to be paid to (recovered
from) the taxation authorities using the tax rates (and tax laws) that have been enacted or substantively enacted, at the end of
the reporting period.

ii. Deferred tax

Deferred Income Tax assets and liabilities are recognised for all temporary differences arising between the tax bases of assets
and liabilities, and their carrying amounts in the financial statements. Deferred income tax assets and liabilities are measured
using the tax rates and tax laws that have been enacted or substantively enacted by the Balance SHeet date. These are expected
to apply in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in
tax rates on deferred income tax assets and liabilities is recognised as income or expenses in the period that includes the
enactment or the substantive enactment date.

A Deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against
which the deductible temporary differences and tax losses can be utilized.

The carrying amount of deferred income tax asset is reviewed at the end of each reporting period and are reduced to the
extent that it is no longer probable that the related tax benefit will be realized.

Deferred tax relating to items recognized outside the Statement of Profit and Loss is recognized either in other comprehensive
income or in equity. Deferred tax items are recognized in correlation to the underlying transaction either in OCI or directly in
equity.

The Company offsets deferred tax assets and deferred tax liabilities when there is a legally enforceable right to offset current tax
assets and liabilities and when the deferred tax balance relate to the same taxation authority. Current tax assets and liabilities
are offset where the Company has a legally enforseable right to offset and intends either to settle on a net basis or to realise
the asset and and settle the liability simutaneously.

3.11 Borrowing costs

Borrowing costs are interest and other costs incurred in connection with the borrowing of funds. Borrowing costs also include
exchange difference to the extent regarded as an adjustment to the borrowing costs.

Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period of time
to get ready for their intended use are capitalised as part of the cost of that asset. The Company considers a period of 12 months
or more as a subtantial period of time. All other borrowing costs are recognised as an expense in the period in which they are
incurred.

3.12 Earnings per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders
and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential
equity shares.

3.13 Cash and Cash Equivalents

Cash and cash equivalents 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 change in value.

3.14 Foreign Currency Transactions

The financial statements of the Company are presented in Indian Rupees (H) which is the functional currency of the Company and
the presentation currency of the financial statements.

Foreign currency transactions are translated into the functional currency using the spot rates of exchanges at the dates of the
transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate
of exchanges at the reporting date.

Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary
assets and liabilities are generally recognized in Statement of Profit and Loss in the year in which they arise except for exchange
differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in
the cost of those qualifying assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings,
the balance is presented in the Statement of Profit and Loss within finance costs.

Non-monetary items are not retranslated at period end and are measured at historical cost (translated using the exchange rate at
the transaction date).

3.14 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a
non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses
associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company
are segregated.