Provisions and Contingent Liabilities

Provisions are recognized when the Company has
a present obligation 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 when a reliable estimate of the
amount of the obligation can be made. Provisions
are measured at the best estimate of the expenditure
required to settle the present obligation at the
Balance Sheet date. The expenses relating to a
provision is presented in the Statement of Profit and
Loss net of any reimbursement.

If the effect of the time value of money is material,
provisions are determined by discounting the
expected future cash flows specific to the liability.
The unwinding of the discount is recognised as
finance cost.

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 asset is not recognised but disclosed
in the financial statements where an inflow of
economic benefit is probable.

Commitments includes the amount of purchase
orders (net of advance) issued to parties for
acquisition of assets.

2.12 Revenue recognition

i) Sale of goods

Revenue from the sale of goods in the course
of ordinary activities is measured at fair value
of the consideration received or receivable,
net of returns, trade discounts, cash discount
and quantity discount and exclusive of Goods
and Service Tax and other taxes and duties
collected on behalf of the government. Sales
are recognised when goods are supplied and
significant risks and rewards of ownership
in the goods are transferred to the buyer as
per the terms of contract and no significant
uncertainty exists regarding the amount of the
consideration that will be derived from the sale
of the goods.

ii) Dividend and Interest income

Dividend income is recognised when the
shareholder's right to receive payment has
been established (provided that it is probable
that the economic benefits will flow to the
Company and amount of income can be
measured reliably.

Interest income from a financial asset is
recognised when it is probable that the
economic benefits will flow to the Company
and the amount of income can be measured
reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding
and at the effective interest rate applicable,
which is the rate that exactly discounts
estimated future cash receipts through the
expected life of the financial asset to the asset's
net carrying amount on initial recognition.

iii) Insurance Claims

Insurance claims are accounted for on
acceptance and when there is a resonable
certainty of receiving the same, on ground of
prudence.

2.13 Foreign Currencies Transactions

The financial statements of the Company are
presented in Indian Rupee ("'"), which is Company's
functional and presentation currency.

Transactions in currencies other than entity's
functional currency (foreign currency) are recorded

at the rates of exchange prevailing on the date
of the transaction. Monetary assets and liabilities
denominated in foreign currencies (other than
derivative contracts) remaining unsettled at the
end of the each reporting period are remeasured
at the rates of exchange prevailing at that date.
Non-monetary items carried at fair value that at
denominated in foreign currency are retranslated
at the rate prevailing at the date when the fair
value was determined. Non-monetary items that
are measured in terms of historical cost in a foreign
currency are not retranslated. Exchange difference
on monetary items are recognised in profit and loss
in the period.

2.14 Borrowing costs

Borrowing costs are interest and other costs
that the Company incurs in connection with the
borrowing of funds and is measured with reference
to the effective interest rate applicable to the
respective borrowing. Borrowing costs that are
directly attributable to the acquisition of an asset
that necessarily takes a substantial period of time
to get ready for its intended use are capitalised as
part of the cost of that asset till the date it is put to
use. Other borrowing costs are recognised as an
expense in the period in which they are incurred.

2.15 Employee Benefits

i) Short-term benefits

All employee benefits payable wholly within
twelve months of rendering the service are
classified as short term employee benefits.
Benefits such as salaries, performance
incentives, etc., are recognized as an expense
at the undiscounted amount in the Statement
of Profit and Loss of the year in which the
employee renders the related service.

ii) Post Employment Benefit

(a) Defined Contribution Plans

Payments made to a defined contribution
plan such as Provident Fund and Family
Pension maintained with Regional Provident
Fund Office are charged as an expense in the
Statement of Profit and Loss as they fall due.

(b) Defined Benefit Plans

The Company's net obligation in respect of
defined benefit plans is calculated separately
for each plan by estimating the amount of
future benefit that employees have earned in

the current and prior periods, after discounting
the same. The calculation of defined benefit
obligations is performed annually by a
qualified actuary using the projected unit credit
method. Re-measurement of the net defined
benefit liability, which comprise actuarial
gains and losses are recognized immediately
in Other Comprehensive Income (OCI). Net
interest expense (income) on the net defined
liability (assets) is computed by applying the
discount rate, used to measure the net defined
liability (asset). Net interest expense and other
expenses related to defined benefit plans are
recognized in Statement of Profit and Loss.

2.16 Taxes on Income

i) Current tax

Current tax is payable based on taxable profit
for the year. Taxable profit differs from 'profit
before tax' as reported in the standalone
statement of profit and loss because of items
of income or expense that are taxable or
deductible in other years and items that are
never taxable or deductible. The current tax
is calculated using tax rates that have been
enacted or substantively enacted by the end of
the reporting period.

ii) Deferred tax

Deferred tax is the tax expected to be payable
or recoverable on temporary differences
between the carrying value of assets and
liabilities in the standalone financial statements
and the corresponding tax bases used in the
computation of taxable profits and is accounted
for using the balance sheet liability method.
Deferred tax liabilities are generally recognised
for all taxable temporary differences. Deferred
tax assets are only recognised on deductible
temporary differences to the extent that is
probable that taxable profits will be available
against which those deductible temporary
differences can be utilised.

The carrying amount of deferred tax assets is
reviewed at the end of each reporting period
and reduced to the extent that it is no longer
probable that sufficient taxable profits will be
available to allow all or part of the asset to be
recovered.

Deferred tax liabilities and assets are measured
at the tax rates that are expected to apply in
the period in which the liability is settled or

the asset is realised, based on tax rates (and tax
laws) that have been enacted or substantially
enacted by the end of the reporting period.

Deferred tax assets and liabilities are offset to
the extent that they relate to taxes levied by
the same tax authority and there are legally
enforceable rights too set off current tax
assets and current tax liabilities within that
jurisdiction.

iii) Minimum alternate tax

Minimum Alternate Tax (MAT) paid in
accordance with the tax laws, which gives
future economic benefits in the form of
adjustment to future income tax liability, is
recognised as a deferred tax asset in the balance
sheet when the asset can be measured reliably
and it is probable that the Company will pay
normal income tax during the specified period
and it is probable that future economic benefit
associated with it will flow to the Company.

iv) Current and deferred tax are recognised in
profit and loss, except when they relate to items
that are recognised in other comprehensive
income or directly in equity, in which case, the
current and deferred tax are also recognised
in other comprehensive income or directly in
equity respectively.

2.17 Earning Per Share

Basic Earnings per share is calculated by dividing
the net profit / (loss) for the period attributable to
the 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 / (loss) for the
period attributable to the equity shareholders and
the weighted average number of equity shares
outstanding during the period is adjusted for the
effects of all dilutive potential equity shares.

2A Recent Indian Accounting Standard (Ind
AS)

2A.1 Recent accouting pronouncements which
are not yet effective

The amendments to standards that are issued,
but not yet effective, up to the date of issuance
of the Company's Financial Statements are
disclosed below. The Company intends to adopt
these standards, if applicable, as and when they
become effective. The Ministry of Corporate Affairs
(MCA) has notified certain amendments to Ind AS,

through Companies (Indian Accounting Standards)
Amendment Rules, 2022 on March 23, 2022. These
amendments maintain convergence with IFRS by
incorporating amendments issued by International
Accounting Standards Board (IASB) into Ind AS and
has amended the following standards:

1. Ind AS 101 - First-time adoption of Ind AS

2. Ind AS 103 - Business Combinations

3. Ind AS 109 - Financial Instruments

4. Ind AS 16 - Property, Plant and Equipment

5. Ind AS 37 - Provisions, Contingent Liabilities
and Contingent Assets

6. Ind AS 41 - Agriculture

These amendments shall come into force with effect
from April 01,2022.

The Company is assessing the potential effect
of the amendments on its financial statements.
The Company will adopt these amendments, if
applicable, from applicability date.

2A.2 Business Combination

Business combinations are accounted for using the
acquistion method of accounting.

The consideration transferred in each business
combination is measured at the aggregate of the

acquisition date fair values of assets given, liabilities
incurred by the Company to the former owners
of the acquiree and equity interests issued by the
Company in exchange for control of the acquiree.

Acquisition related costs are recognised in profit or
loss as incurred.

The acquiree's identifiable assets, liabilities and
contingent liabilities that meet the conditions
for recognition are recognised at their fair value
at the acquisition date, except certain assets and
liabilities that are required to be measured as per
the applicable standard.

Any contingent consideration to be transferred
by the acquirer is recognized at fair value at the
acquisition date. Contingent consideration classified
as financial liability is measured at fair value with
changes in fair value recognized in the statement of
profit and loss.

Purchase consideration in excess of the Company's
interest in the acquiree's net fair value of identifiable
assets, liabilities and contingent liabilities is
recognised as goodwill. Excess of the Company's
interest in the net fair value of the acquiree's
identifiable assets, liabilities and contingent
liabilities over the purchase consideration is
recognised, after reassessment of fair value of net
assets acquired, in the capital reserve.