k) Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when an enterprise has a present obligation as a result of past event; 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. Provisions are not discounted to its present value and are determined based on
best estimate required to settle the obligation at the balance sheet date. These are reviewed at each
balance sheet date and adjusted to reflect the current best estimates.

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

A contingent assets, where an inflow of economic benefits is probable, an entity shall disclose a brief
description of the nature of the contingent assets at the end of the reporting period, and, where
practicable, an estimate of their financial effect, measured using the principles set out for provisions in Ind
AS 37. Contingent assets are not recognised in the financial statements.

l) 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.

m) Financial instruments

Financial assets and financial liabilities are recognized when an entity becomes a party to the contractual
provisions of the instruments.

Initial recognition

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from
the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair
value through profit or loss are recognized immediately in profit or loss. Regular way purchase and sale of
financial assets are accounted for at trade date.

Subsequent measurement

a) Non-derivative financial instruments

i) Cash and Cash equivalents

The company considers all highly liquid financial instruments, which are readily convertible
into known amounts of cash that are subject to an insignificant risk of change in value and
having original maturities of three months or less from the date of purchase, to be cash
equivalents. Cash and cash equivalents consists of balances with banks which are
unrestricted for withdrawal and usage.

ii) Financial assets carried at amortised cost

A financial asset is subsequently 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.

iii) Equity investments at fair value through other comprehensive income (FVTOCI)

These include financial assets that are equity instruments and are irrevocably designated as
such upon initial recognition. Subsequently, these are measured at fair value and changes
therein are recognized directly in other comprehensive income, net of applicable income
taxes.

Dividends from these equity investments are recognized in the Statement of Profit and Loss
when the right to receive payment has been established. When the equity investment is
derecognized, the cumulative gain or loss in equity is transferred to retained earnings.

iv) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are subsequently fair
valued through profit or loss.

v) Financial liabilities

Financial liabilities are subsequently 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.

b) Share Capital
Ordinary Shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of
new ordinary shares are recognized as a deduction from equity.

c) Derecognition of financial instruments

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

n) Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses a variety of methods and
assumptions that are based on market conditions and risks existing at each reporting date. The methods
used to determine fair value include available quoted market prices. All methods of assessing fair value
result in general approximation of value, and such value may never actually be realized. The fair values
of investments in mutual fund units is based on the net asset value (“NAV”) as stated by the issuers of
these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price
at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such
units from the investors.

The fair value measurements are categorized into Level 1,2 or 3 based on the degree to which the inputs
to the fair value measurements are observable and the significance of the inputs to the fair value
measurements are observable and the significance of the inputs to the fair value measurement in its
entirety, which are described as follows:

Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the Company can
access at the measurement date;

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the
asset or liability, either directly or indirectly; and

Level 3 inputs are unobservable inputs for the asset or liability

o) Impairment of Financial Assets

The Company recognizes loss allowances using the Expected Credit Loss (ECL) model for the financial
assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no
significant financing component is measured at an amount equal to lifetime ECL. For all other financial
assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has
been a significant increase in credit risk from initial recognition in which case those are measured at
lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss
allowance at the reporting date to the amount that is required to be recognized is recognized as an
impairment gain or loss in profit or loss.