2.10 PROVISION, CONTINGENT LIABILITIES AND
CONTINGENT ASSETS

A provision is recognized when there is a present obligation
as a result of a past event, that probably requires an outflow
of resources and a reliable estimate can be made to settle
the amount of obligation. Provision is discounted to its
present value wherever required and is determined based
on the last estimate required to settle the obligation at the
year end. These are reviewed at each year end and adjusted
to reflect the best current estimate.

Contingent liabilities are disclosed in notes when there is a
possible obligation that rises from past events and whose
existence will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not
wholly within the control of the entity. Contingent assets are
neither recognized nor disclosed in the financial statements.

2.11 GOVERNMENT GRANTS

Government grants are initially recognized as income at
fair value if there is reasonable assurance that they will be
received and the Group will comply with the conditions
associated with the grant;

- In case of capital grants, they are then recognized in
Statement of Profit and Loss as other income on a
systematic basis over the useful life of the asset.

- In case of grants that compensate the Group for
expenses incurred are recognized in Consolidated
Statement of Profit and Loss on a systematic basis in
the periods in which the expenses are recognized."

2.12 FINANCIAL INSTRUMENTS

2.12.1 Investment in subsidiaries, associates and
joint ventures

The Company has accounted for its investments in
subsidiaries, associates and joint ventures at cost
less impairment.

2.12.2 Other financial assets and financial liabilities

Other financial assets and financial liabilities are recognized
when Company becomes a party to the contractual
provisions of the instruments.

Initial recognition and measurement: Other 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 statement of profit and loss.

Subsequent measurement: Financial assets at amortized
cost. Financial assets are subsequently measured at
amortized cost if these financial assets are held within a
business whose objective is to hold these assets in order
to collect contractual cash flows and contractual terms of
financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal
amount outstanding.

Financial assets at fair value through other
comprehensive income

Financial assets are measured at fair value through other
comprehensive income if these financial assets are held
within business whose objective is achieved by both
collecting contractual cash flows on specified dates that are
solely payments of principal and interest on the principal
amount outstanding and selling financial assets.

Financial assets at fair value through Profit & loss
Account

Financial assets are measured at fair value through
profit or loss unless it measured at amortized cost or fair
value through other comprehensive income on initial
recognition. The transaction cost directly attributable
to the acquisition of financial assets and liabilities at fair value
through profit or loss are immediately recognized in the
statement of profit and loss.

Financial liabilities
Recognition of Financial liabilities

Financial liabilities are measured at amortized cost using
effective interest rate 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.

De-Recognition of Financial liabilities

The difference between the carrying amount of a financial
liability extinguished or transferred to another party and the
consideration paid, including any non cash assets transferred
or liabilities assumed shall be recognized in profit or loss

account. Further the company applies extinguishment
accounting/modification accounting as per IND-AS 109.

2.12.3 Equity Instruments

An equity instrument is a contract that evidences residual
interest in the assets of the company after deducting all of its
liabilities. Equity instruments recognized by the Company are
recognized at the proceeds received net off direct issue cost.

2.13 IMPAIRMENT OF ASSETS

At the end of each reporting period, the Company reviews
the carrying amounts of its tangible and intangible assets to
determine whether there is any indication that those assets
have suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in
order to determine the extent of the impairment loss (if
any). When it is not possible to estimate the recoverable
amount of an individual asset, the Company estimates the
recoverable amount of the cash-generating unit to which
the asset belongs. When a reasonable and consistent basis
of allocation can be identified, Corporate assets are also
allocated to individual cash generating units, or otherwise
they are allocated to the smallest group of cash-generating
units for which a reasonable and consistent allocation basis
can be identified.

Intangible assets with indefinite useful lives and intangible
assets not yet available for use are tested for impairment at
least annually, and whenever there is an indication that the
asset may be impaired.

When an impairment loss subsequently reverses, the
carrying amount of the asset (or a cash generating unit) is
increased to the revised estimate of its recoverable amount,
but so that the increased carrying amount does not exceed
the carrying amount that would have been determined had
no impairment loss been recognized for the asset (or cash¬
generating unit) in prior years. A reversal of an impairment
loss is recognized immediately in statement of profit and loss"

2.14 TRADE RECEIVABLES & ADVANCES

Sundry debtors outstanding for more than three years at
the end of Balance Sheet date will be written off from the
books of accounts except disputed debtors having matters
pending under different Courts.

Other advances and related party balances outstanding
for more than 3 years are reviewed by the management at
the end of every financial year and are written off as per the
judgment of the management.

2.15 OPERATING CYCLE

Based on the nature of products / activities of the Group
and the normal time between acquisition of assets and
their realization in cash or cash equivalents, the Group has
determined its operating cycle as 12 months for the purpose
of classification of its assets and liabilities as current and
non-current.

2.16 KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company's accounting policies, the
directors of the Company are required to make judgements,
estimates and assumptions about the carrying amounts
of assets and liabilities that are not readily apparent from
other sources.

The estimates and associated assumptions are based on
historical experience and other factors that are considered
to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimate is revised if
the revision affects only that period, or in the period of the
revision and future periods if the revision affects both current
and future periods.

The following are the key assumptions concerning the
future, and other key sources of estimation uncertainty at the
end of the reporting period that may have a significant risk
of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year.

2.16.1 Useful lives of property, plant and
equipment and Intangible assets

The Company reviews the useful life of property, plant
and equipment at the end of each reporting period. This
assessment may result in change in the depreciation
expense in future periods.

2.16.2 Employee Benefits

The cost of defined benefit plans are determined using
actuarial valuations. The actuarial valuation involves making
assumptions about discount rates, expected rates of return
on assets, future salary increases, mortality rates and future
pension increases. Due to the long-term nature of these
plans, such estimates are subject to significant uncertainty.

2.16.3 Litigations

The Company is a party to certain commercial disputes
and has also received notification of claims for significant
amounts. There are number of factors that may affect the
ultimate outcome in respect of this matter and accordingly,
it is difficult to assess the impact of these disputes
with accuracy.

2.17 OTHER ACCOUNTING POLICIES

Accounting Policies not specifically referred to are in
accordance with generally accepted accounting principles
including the Indian Accounting Standards (Ind AS)
prescribed under section 133 of the Act.