I. Provisions, contingent liabilities and contingent assets

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a
past event and it is probable that the outflow of resources embodying economic benefits will be required to
settled the obligation in respect of which reliable estimate can be made of the amount of the obligation. When
the Company expects some or all of a provision to be reimbursed, the expense relating to provision presented
in the statement of profit & loss is net of any reimbursement.

The present obligation under an onerous contract is recognised and measured as a provision. However before
a separate provision for an onerous contract is established, the company recognises any impairment loss that
has occurred on assets dedicated to that contract. If the effect of the time value of money is material, provisions
are disclosed using a current pre-tax rate that reflects, when appropriate, the risk specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognized as finance cost.

Contingent liabilities are possible obligations that arise from past events and whose existence will only be
confirmed by the occurrence or non-occurrence of one or more future events not wholly within the control of
the Company. Where it is not probable that an outflow of economic benefits will be required, or the amount
cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of
outflow of economic benefits is remote.

Contingent assets are not recognized but disclosed, when probable assets that arises from past events and
whose existence will be confirmed only by the occurrence or non-occurrence of one more uncertain event not
wholly with in the control of the Company.

Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

J. Taxes

Income tax comprises current and deferred tax. It is recognized in profit or loss except to the extent that it
relates to a business combination or to an item recognized directly in equity or in other comprehensive income.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and
any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects
the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any,
related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the
reporting date.

In correlation to the underlying transaction relating to Other comprehensive income and Equity, current tax
items are recognized in Other comprehensive income and Equity, respectively.

Management periodically evaluates positions taken in the tax returns to situations in which applicable tax
regulations are subject to interpretation. Then, full provisions are made where appropriate based on the amount
expected to be paid to the tax authorities.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the
recognized amounts, and it is intended to realize the asset and settle the liability on net basis or simultaneously.

Deferred tax

Deferred tax is recognised using the balance sheet approach, providing for all the temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used
for taxation purposes, including on the transactions that give rise to equal and offsetting temporary differences
on its initial recognition. Deferred income tax is determined using tax rates (and laws) that have been enacted
or substantially enacted by the end of the reporting period and are expected to apply when the related deferred
income tax assets is realised or the deferred income tax liability is settled.

Deferred tax is recognised in Statement of profit and loss except to the extent that it relates to items recognized
directly in OCI or equity, in which case it is recognised in OCI or equity.

Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax asset are
recognised for deductible temporary differences, the carry forward of unused tax credits (MAT), and any
unused tax losses to the extent that it is probable that future taxable profits will be available against which the
deductible temporary differences, unused tax credits, and unused tax losses can be utilised. Deferred tax assets
are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related
tax benefit will be realised.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off deferred
tax assets against deferred tax liabilities, and the deferred taxes relate to the same taxable entity and the same
taxation authority.

K. 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.

Revenue from Contracts with Customers

Revenue from Contract(s) is recognised by following five steps model from revenue recognition as prescribed
in Ind AS 115 which namely are identifying of the contract(s) with a customer ; identifying the separate
performance obligation in the contract ; determining the transaction price ; allocating the transaction price to
the each separate performance obligation and recognising revenue when (or as) each performance obligation is

satisfied. The model specifies that revenue should be recognised when (or as) an entity transfer control of goods
or services to a customer at the amount to which the entity expects to be entitled.

Revenue is recognized upon transfer of control of promised products or services to customers in an amount
that reflects the consideration, the Company expect to receive in exchange for those products or services.
Revenue is inclusive of excise duty and excluding estimated discounts, pricing incentives, rebate and other
similar allowances to the customers and exclusive of GST and other taxes and amount collected on behalf of
third party or Government, if any.

Sale of Products

Revenue from sale of products is recognised at the point in time when control of asset is transferred to the
customers i.e. when the customers obtain the ability to direct the use of and obtain substantially all of the
remaining benefits from the asset, including ability to prevent other entities from directing the use of, and
obtaining the benefits from an asset. The company considers whether there are other promises in the contract
that are separate performance obligation to which a portion of the transaction price needs to be allocated e.g.
warranties. In determining the transaction price for the sale of products, the company considers the effect
of variable consideration, the existence of significant financing components, non-cash consideration, and
consideration payable to the customers, if any.

Contract Balances
Contract Assets

A contract asset is recognised for the conditional earned consideration, if the company has the right to
consideration in exchange of goods or services transferred to a customer before the customer pays the
consideration or before payment is due.

Trade Receivables

A trade receivable is recognised for the company’s right to an amount of consideration, in exchange of goods or
services transferred to a customer, that is unconditional i.e. only the passage of time is required before payment
of the consideration is due.

Contract Liabilities

A Contract liabilities is recognised for the consideration paid by a customer before the transfer of goods or
services to the company. The contract liabilities are recognised as revenue when the company performs under
the contract.

Contract Cost

The incremental costs of obtaining a contract with a customer and the costs incurred to fulfil a contract with
a customer, if those cost are not within the scope of other Ind AS for e.g. Ind AS 2 - Inventories, Ind AS 16-
Property Plant & equipment, Ind AS 38- Intangible Assets etc, are recognised as an asset, if the company expects
to recover those costs. The incremental costs of obtaining the contract are those that the company incurs to
obtain a contract with a customer that would not have been incurred if the contract had not been obtained.
The company has elected to apply the optional practical expedient for costs to obtain a contract and to fulfil a
contract which allows the company to immediately expense the costs because the amortization period of the
asset that the company otherwise would have used is one year or less.

Interest

Interest income from a financial asset is recognized when it is probable that the economic benefit 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 that asset’s
net carrying amount on initial recognition.

Dividends

Dividend income is recognized when the Company’s right to receive the dividend is established, it is probable
that the economic benefits associated with the dividend will flow to the entity and the amount of the dividend
can be measured reliably i.e. in case of interim dividend, on the date of declaration by the Board of Directors;
whereas in case of final dividend, on the date of approval by the shareholders.

Insurance claim

Insurance claim are recognised only when the realisation of insurance claim is probable, and only to the extent
of related loss recognised in the financial statements. The recovery of loss is generally would be probable, when
the claim is not in dispute. Any amount expected to be recovered is excess of recognised loss, which will result
in gain is recognised upon the resolution of contingencies liability to insurance claim i.e. whether amount of
claim is admitted to the payable by the insurance company.

L. Expenses

All expenses are accounted for on accrual basis.

M. Foreign currency translation/conversion

Transactions in foreign currencies are initially recorded at the functional currency spot rate prevailing at the
date of the transaction first qualifies for recognition.

Monetary assets and liabilities related to foreign currency transactions outstanding at the balance sheet date
are translated at the functional currency spot rate of exchange prevailing at the balance sheet date. Any income
or expense arising on account of foreign exchange difference either on settlement or on translation is recognized
in the Statement of Profit and Loss.

Non-monetary items which are carried at historical cost denominated in a foreign currency are translated using
the exchange rate at the date of the initial transaction. Non-monetary items which are measured at fair value in
a foreign currency are translated using the exchange rates at the date when fair value is determined. The gain or
loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition
of the gain or loss on the change in fair value of item.

N. Borrowings

Long term borrowings are initially recognized at net of material transaction costs incurred and measured at
amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is
recognized in the statement of profit or loss over the period of the borrowings using the effective interest method.

O. Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are
capitalised during the period that is required to complete and prepare the asset for its intended use or sale.
Qualifying assets are assets that necessarily take a substantial time to get ready for their intended use or sale.
Borrowing costs consist of interest and other costs that an Company incurs in connection with the borrowing
of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the
borrowing costs. Other borrowing costs are expensed in the period in which they are incurred.

P. Impairment

O Non Financial assets

Intangible assets that have an indefinite useful life are not subject to amortisation but are tested annually
for impairment.

Other intangible assets and property, plant and equipment are evaluated for recoverability whenever
events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the
purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell
and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash
flows that are largely independent of those from other assets. In such cases, the recoverable amount is
determined for the Cash Generating Unit (CGU) to which the asset belongs.

The Carrying amount of assets is reviewed at each balance sheet date, if there is any indication of
impairment based on internal/external factor. An asset is impaired when the carrying amount of the
assets exceeds the recoverable amount. Impairment is charged to the profit and loss account in the year
in which an asset is identified as impaired.

An impairment loss is reversed in the statement of profit and loss if there has been a change in the
estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its
revised recoverable amount, provided that this amount does not exceed the carrying amount that would
have been determined (net of any accumulated amortization or depreciation) had no impairment loss
been recognized for the asset in prior years.

O Financial assets

The Company recognizes loss allowances using the Expected Credit Loss (“ECL”) model for financial
assets measured at amortized cost. The Company recognizes lifetime expected credit losses for trade
receivables. Loss allowance equal to the lifetime expected credit losses are recognized if the credit risk of
the financial asset has significantly increased since initial recognition.

Q. Employee benefits

O Short-term obligations

Short-term obligations for wages and salaries, including nonmonetary benefits that are expected to be
settled wholly within twelve months after the end of the period, are recognised as an expense at the
undiscounted amounts of expected liabilities in the year in which the related service is rendered.

O Defined contribution plans

The Company pays provident and other fund contributions to publicly administered funds as per related
Government regulations. The Company has no further obligation other than the contributions payable to
the respective funds. The Company recognizes contribution payable to such funds as an expense when an
employee renders the related service.

O Defined benefit plans

The company provides for gratuity, a defined benefit retirement plan (‘ the Gratuity Plan’) covering
eligible employees of the company. The Gratuity Plan provides a lumpsum payment to vested employees
at retirement, death, or termination of employment, of an amount based on the respective employee’s
salary and the tenure of employment with the company.

The cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial
valuation being carried out at each balance sheet date.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and is included in finance cost expenses in the Statement of Profit and Loss.

The service cost on the net defined benefit liability/ (asset) is included in employees benefit expenses in
the statement of profit and loss.

Past service cost is recognised as an expense when the plan amendment or curtailment occurs or when
any related restructuring costs or termination benefits are recognised, whichever is earlier.

Re- measurement gain and loss arising from experience adjustments and change actuarial assumptions are
recognised in the periods in which they occur, directly in other comprehensive income. Re- measurement
are not classified to the Statement of Profit and Loss in subsequent periods.

O Compensated absences

The employees of the Company are entitled to compensated absences that are both accumulating and
nonaccumulating in nature. The expected cost of accumulating compensated absences is determined by
actuarial valuation using the projected unit credit method for the unused entitlement accumulated at the
balance sheet date. The benefits are discounted using the market yields at the end of the balance sheet
date that has terms approximating the terms of the related obligation. Re-measurements resulting from
experience adjustments and changes in actuarial assumptions are recognized in profit or loss.

O Voluntary Retirement Scheme

Expenditure on voluntary retirement scheme is charged to the Statement of Profit and Loss in the year in
which it is incurred.

R. Financial Instruments

(a) Financial Assets
Classification

The company classified financial assets as subsequently measured at amortized cost, fair value though
other comprehensive income or fair value through profit or loss on the basis of its business model for
managing the financial assets and contractual cash flow characteristics of the financial asset.

Initial Recognition and Measurement

All financial assets are recognised initially at fair value. Transaction costs directly attributable to the
acquisition or issue of the financial asset, other than financial assets at fair value through profit or loss,
are added to or deducted from the fair value of the financial assets as appropriate on initial recognition.
The financial assets include equity and debt securities, trade and other receivables, loans and advances,
cash and bank balances and derivative financial instruments. Trade receivables that do not contain a
significant financing component are measured at transaction price.

Subsequent Measurement

For the purpose of subsequent measurement the financial assets are classified in three categories:

O at amortized cost

O at fair value through other comprehensive income
O at fair value through profit or loss

Financial assets at amortized cost

A “Financial asset” is measured at the amortized cost. Amortized cost if both the following condition
are met.

O The assets is held within a business model whose objective is to hold assets for collecting contractual
cash flow (business model test), and

O Contractual terms of the assets give rise on specified dates to cash flows that are solely payments of
principle and interest on the principle amount outstanding.

After initial measurement, such financial assets are subsequently measurement at amortized cost using
the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount
and premium and fee or costs that are an integral part of an EIR. The EIR amortization is included in
finance income in the statement of profit and loss. The losses arising from impairment are recognized in
the statement of profit and loss.

Financial assets at fair value through other comprehensive income

A financial asset is measured at FVTOCI if both the following conditions are met:

O The asset is held within a business model in which asset are managed both in order to collect
contractual cash flows and for sale, and

O Contractual terms of the assets give rise on specified dates to cash flows that are solely payments of
principle and interest on the principle amount outstanding.

After initial measurement (at fair value minus transaction cost), such financial assets are measured at fair
value with changes in fair value recognized in Other comprehensive income except for:

O Interest calculated using EIR
O Foreign exchange gain and losses , and
O Impairment losses and gains
Financial assets at Fair value through Profit or loss

Financial assets that are not classified in any of the categories above are classified at fair value through
profit or loss (FVTPL).

Equity investments

All equity investments in the scope of Ind AS 109 are measured at fair value. Equity instruments included
within the FVTPL category, if any, are measured at fair value with all changes recognized in statement of
profit or loss. The Company may make an irrevocable election to present in OCI subsequent changes in the
fair value. The Company makes such election on an instrument-by-instrument basis. The classification
is made on initial recognition and is irrevocable. When the fair value has been determined based on
level 3 inputs, the difference between the fair value at initial recognition and the transaction price, if
loss, is recognized through retained earnings and after initial recognition subsequent changes in fair
value of equity instruments is recognised as gain or loss to the extent it arises from change in input to
valuation technique

If the company decides to classify an equity instrument as at FVTOCI, then fair value changes on the
instrument, excluding dividends, are recognized in other compressive income (OCI). There is no recycling
of the amounts from OCI to statement of profit or loss, even on sale of investments.

However, the Company may transfer the cumulative gain or loss within equity.

Derecognition

A financial asset (or, where applicable, a part of a financial asset) is primarily derecognized when:

O The right to receive cash flows from the assets have expired or

O The company has transferred substantially all the risks and rewards of the assets, or

O The company has neither transferred nor retained substantially all the risks and rewards of the
assets, but has transferred control of the assets.

(b) Financial liabilities
Classification

Debt and equity instruments issued by the company are classified as either financial liabilities or as equity
in accordance with the substance of the contractual agreements and the definitions of financial liability
and equity instrument.

Initial recognition and measurement

The company recognizes financial liability when it becomes a party to the contractual provision of the
instrument. All financial liabilities are recognized initially at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial liabilities, other than financial liabilities at fair value
through profit or loss, are added to or deducted from the fair value of the financial liabilities, as appropriate,
on initial recognition.

Subsequent measurement

All financial liabilities are subsequently measured at amortised cost using the effective interest method
or at FVTPL.

Financial liability at amortized cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized
cost using the Effective Interest Rate (EIR) method. Gain and losses are recognized in statement of profit
and loss when the liabilities are derecognized.

Amortization cost is calculated by taking into account any discount or premium on acquisition and
transaction cost. These amortization is included as finance cost in the statement of profit and loss.

This category generally applies to loans & borrowings.

Financial liability at FVTPL

Financial liabilities are classified at FVTPL when the financial liability is either contingent consideration
recognized by the company as an acquirer in a business combination to which Ind AS 103 applies or is
held for trading or it is designed as at FVTPL. Financial liabilities at FVTPL are stated at fair value, with
any gain or loss arises on re-measurement recognized in profit or loss. The net gain or loss recognized in
profit or loss incorporates any interest paid on the financial liability.

Equity Instrument

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

Repurchase of the company’s own equity instruments is recognized and deducted directly in equity. No
gain or loss is recognized in profit or loss on the purchase, sale, issue, or cancellation of the company’s
own equity instruments.

Financial guarantee contracts

Financial guarantee contracts issued by the company are those contracts that requires a payment to be
made to reimburse the holder for a loss it incurs because the specific debtors fails to make a payment
when due in accordance with the terms of debt instrument. Financial guarantee contracts are recognised
initially as a liability at a fair value, adjusted for transaction costs that are directly attributable to the
issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss
allowance determined as per impairment requirement of Ind AS 109 and the amount recognised less
cumulative amortization.

De-recognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expired. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the de-recognition of the original liability and the recognition of a new liability.
The difference in the respective carrying amount recognized in the Statement of Profit and Loss.

(c) Offsetting of financial instrument

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset the recognized amounts and there is an intention to
settle on a net basis, to realize the assets and settle the liabilities simultaneously.

(d) Equity Share Capital

Ordinary shares are classified as equity instrument is a contract that evidences a residual interest in
Company’s assets after deducting all its liabilities.

Incremental cost directly attributable to the issuance of new equity share and buyback of equity shares
are shown as a deduction from the equity, net off any tax effects.

S. Derivative Financial Instruments and Hedge Accounting

The Company uses various derivative financial instruments to mitigate the risk of changes in interest rates,
exchange rates and commodity prices. Such derivative financial instruments are initially recognised at fair
value on the date on which a derivative contract is entered into and are also subsequently 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.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of
Profit and Loss, except for the effective portion of cash flow hedge which is recognised in Other Comprehensive
Income and later to Statement of Profit and Loss when the hedged item affects profit or loss or is treated as
basis adjustment if a hedged forecast transaction subsequently results in the recognition of a Non-Financial
Assets or Non-Financial liability.

Hedges that meet the criteria for hedge accounting are accounted for as follows:

A. Cash Flow Hedge:

The Company designates derivative contracts or non-derivative Financial Assets / Liabilities as hedging
instruments to mitigate the risk of movement in interest rates and foreign exchange rates for foreign
exchange exposure on highly probable future cash flows attributable to a recognised asset or liability
or forecast cash transactions. When a derivative is designated as a cash flow hedging instrument, the
effective portion of changes in the fair value of the derivative is recognized in the cash flow hedging
reserve being part of Other Comprehensive Income. Any ineffective portion of changes in the fair value of
the derivative is recognized immediately in the Statement of Profit and Loss. If the hedging relationship no
longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the
hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging
instrument recognized in cash flow hedging reserve till the period the hedge was effective remains in
cash flow hedging reserve until the underlying transaction occurs. The cumulative gain or loss previously
recognized in the cash flow hedging reserve is transferred to the Statement of Profit and Loss upon the
occurrence of the underlying transaction. If the forecasted transaction is no longer expected to occur, then
the amount accumulated in cash flow hedging reserve is reclassified in the Statement of Profit and Loss.

B. Fair Value Hedge:

The Company designates derivative contracts or non-derivative Financial Assets / Liabilities as hedging
instruments to mitigate the risk of change in fair value of hedged item due to movement in interest rates,
foreign exchange rates and commodity prices. Changes in the fair value of hedging instruments and
hedged items that are designated and qualify as fair value hedges are recorded in the Statement of Profit
and Loss. If the hedging relationship no longer meets the criteria for hedge accounting, the adjustment
to the carrying amount of a hedged item for which the effective interest method is used for amortising to
Statement of Profit and Loss over the period of maturity.

T. Operating segments

The Company’s operating segments are established on the basis of those components of the Company that are
evaluated regularly by the Board of Directors (the ‘Chief Operating Decision Maker’ as defined in Ind AS 108
- ‘Operating Segments’), in deciding how to allocate resources and in assessing performance. These have been
identified taking into account nature of products and services, the differing risks and returns and the internal
business reporting systems.

Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of
the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on
reasonable basis have been disclosed as “Un-allocable”.

Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Assets and
liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Un-allocable”.

U. Government grants

Government grants are recognised at fair value where there is reasonable assurance that the grant will
be received and all attached conditions will be complied with. Government grants that are receivable as
compensation for expenses or losses already incurred or for the purpose of giving immediate financial support
to the company with no future related costs are recognised in statement of profit and loss in the period in which
they become receivable.

Government grants related to assets, including non-monetary grants recorded at fair value, are treated as
deferred income and are recognized and credited in the Statement of Profit and Loss on a systematic and
rational basis over the estimated useful life of the related asset and presented in other income.

When loans or similar assistance are provided by governments or related institutions, with an interest rate
below the current applicable market rate, the effect of this favourable interest is regarded as a government
grant. The loan or assistance is initially recognised and measured at fair value and the government grant is
measured as the difference between the initial carrying value of the loan and the proceeds received. The loan is
subsequently measured as per the accounting policy applicable to financial liabilities.

V. Non-current assets (or disposal group) held for sale and discontinued operations:

Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying
value and fair value less costs to sell.

Assets and disposal groups are classified as held for sale if their carrying value will be recovered through a sale
transaction rather than through continuing use. This condition is only met when the sale is highly probable and
the asset, or disposal group, is available for immediate sale in its present condition and is marketed for sale at
a price that is reasonable in relation to its current fair value.

Where a disposal group represents a separate major line of business or geographical area of operations, or is part
of a single coordinated plan to dispose of a separate major line of business or geographical area of operations,
then it is treated as a discontinued operation. The post-tax profit or loss of the discontinued operation together
with the gain or loss recognised on its disposal are disclosed as a single amount in the statement of profit and
loss, with all prior periods being presented on this basis.

W. Fair Value Measurement

The Company measures financial instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based on
the presumption that the transaction to sell the asset or transfer the liability takes place either:

O In the principal market for the asset or liability, or

O In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant
that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximising the use of relevant observable inputs and minimising the use
of unobservable inputs.”

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the
fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets & liabilities on the basis
of the nature, characteristics and the risks of the asset or liability and the level of the fair value hierarchy as
explained above.

X. Dividend payable

Dividends and interim dividends payable to a Company’s shareholders are recognized as changes in equity in
the period in which they are approved by the shareholder’s meeting and the Board of Directors respectively.

Y. Statement of Cash Flow

Cash flows are stated using the indirect method, whereby profit/loss before tax 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 items of incomes and expenses associated with investing or financing flows. The cash flows from
operating, investing and financing activities of the Company are segregated.