Provision, Contingent Liability and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a
present obligation as a result of past events and it is probable that there will be outflow of resources.
Provisions are determined by discounting the expected future cash flows at a pretax rate that reflects
current market assessment of the time value of money and the risks specific to the liability. Contingent
liabilities not provided for, are disclosed in the accounts by way of Notes.

4.9 Cash Flow statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of
transactions of 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
are segregated into operating, investing and financing activities.

4.10 Borrowing Cost

(i) Borrowing cost include interest computed using Effective Interest Rate method, amortization of ancillary
costs incurred and exchange differences arising from foreign currency borrowings to the extent they are
regarded as an adjustment to the interest cost.

(ii) Borrowing costs that are directly attributable to the acquisition, construction, production of a qualifying
asset are capitalized as part of the cost of that asset which takes substantial period of time to get ready for
its intended use. The Company determines the amount of borrowing cost eligible for capitalization by
applying capitalization rate to the expenditure incurred on such cost. The capitalization rate is determined
based on the weighted average rate of borrowing cost applicable to the borrowings of the Company which
are outstanding during the period, other than borrowings made specifically towards purchase of the
qualifying asset. The amount of borrowing cost that the Company capitalizes during the period does not
exceed the amount of borrowing cost incurred during that period. All other borrowings cost are expensed in
the period in which they occur.

4.11 Government Subsidy / Grant

(i) Government grants are recognized at fair value on accrual basis where there is a reasonable assurance
that the grant will be received and all the attached conditions are complied with.

(ii) In case of revenue related grant, the income is recognized on a systematic basis over the period for which
it is intended to compensate an expense and is disclosed under "Other operating revenue" or netted off
against corresponding expenses wherever appropriate. Receivables of such grants are shown under "Other
Financial Assets". Export benefits are accounted for in the year of exports based on eligibility and when
there is no uncertainty in receiving the same. Receivables of such benefits are shown under "Other Financial
Assets".

(iii) In case of grant relates to an asset, it is recognized as income over the expected useful life of the related
asset.

4.12 Foreign Currency Transactions

Foreign Currency Transactions are translated into the functional currency using exchange rates at the date
of the transaction. Foreign exchange gains and losses from settlement of these transactions and from
translation of monetary assets and liabilities at the reporting date exchange rates are recognized in the
statement of Profit and Loss. Non- monetary items which are carried at historical cost denominated in
foreign currency are reported using the exchange rates at the date of transaction.

4.13 Earnings Per Share

Basic Earnings per share is calculated by dividing the Net profit or loss after tax attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year. Diluted EPS is
determined by adjusting the Profit or loss attributable to equity shareholders and the weighted average
number of equity shares outstanding for the effects of all dilutive potential equity shares.

4.14 Income Tax

The tax provision is considered as stipulated in IND AS 12 and includes current and deferred tax liability. The
company recognizes the accumulated deferred tax asset based on accumulated time difference using
current tax rate. Both the current tax and deferred tax liability relating to items recognized outside the profit
or loss is recognized either in "other Comprehensive Income" or directly in "Equity" as the case may be.

4.15 Segment Reporting

The Company's Operating segment is identified based on nature of activity, risks and returns. The Company
is primarily engaged in Trading of all kinds of tradable and marketable goods - Operating Segment.

4.16 Impairment of Non-financial Assets

(i) The carrying values of non-financial assets are reviewed for impairment at each Balance Sheet date, if
there is any indication of impairment based on internal and external factors.

(ii) Non-financial assets are treated as impaired when the carrying amount of such asset exceeds its
recoverable value. After recognition of impairment loss, the depreciation / amortization for the said assets is
provided for remaining useful life based on the revised carrying amount, less its residual value if any, on
straight line basis.

(iii) An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is
identified as impaired.

(iv) An impairment loss is reversed when there is an indication that the impairment loss may no longer exist
or may have decreased.

4.17 Financial Instruments

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity. Financial assets and financial liabilities are recognized when the
Company becomes a party to the contractual provisions of the relevant instrument and 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 at fair value
through profit or loss are recognized immediately in profit or loss.

4.18 Financial Asset

(i) Financial assets comprise of investments in Equity, Trade Receivables, Cash and Cash Equivalents and
Other Financial Assets.

"(ii) Depending on the business model (i.e) nature of transactions for managing those financial assets and its
contractual cash flow characteristics, the financial assets are initially measured at fair value and
subsequently measured and classified at:

a) Amortized cost; or

b) Fair value through Other Comprehensive Income (FVTOCI); or

c) Fair value through Profit or Loss (FVTPL)

d) Amortized cost represents carrying amount on initial recognition at fair value plus or minus transaction
cost."

(iii) The Company classifies its financial assets for measurement as below:-

(iv) The company derecognises a financial asset when the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the
asset to another party. On de-recognition of a financial asset or part thereof, the difference between the
carrying amount measured at the date of recognition and the consideration received including any new
asset obtained less any new liability assumed shall be recognized in the statement of profit and Loss.

(v) The company assesses at each balance sheet date whether the financial asset or group of financial assets
is impaired. IND AS 109 requires expected credit losses to be measured through a loss allowance. The
company recognizes lifetime expected losses for trade receivables that do not constitute a financing
transaction. For all other financial assets, expected credit losses are measured at an amount equal to 12
month expected credit losses or at an amount equal to lifetime expected losses, if the credit risk on the
financial asset has increased significantly since initial recognition.

4.19 Financial Liability

(i) Financial liabilities comprise of Borrowings from Banks, Trade payables, Derivative financial instruments,
financial guarantee obligation and other financial liabilities.

(ii) The Company classifies its financial assets for measurement as below:-

(iii) Financial liabilities are derecognised when and only when it is extinguished (i.e) when the obligation
specified in the contract is discharged or cancelled or expired.

(iv) Upon de-recognition of its financial liabilities or part thereof, the difference between the carrying
amount of a financial liability that has been extinguished or transferred to another party and the
consideration paid including any non-cash assets transferred or liabilities assumed is recognized in the
Statement of Profit and Loss.

4.20 Fair value measurement

(i) 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.

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

"(iii) All assets and liabilities for which fair value is measured are disclosed in the financial statements are
categorised within fair value hierarchy based on the lowest level input that is significant to the fair value
measurement as a whole. The fair value hierarchy is described as below:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities

Level 2: Valuation techniques for which the lowest level inputs that are significant to the fair value
measurement are directly or indirectly observable.

Level 3: Valuation techniques for which the lowest level inputs that are significant to the fair value
measurement are unobservable."

(iv) For assets and liabilities that are recognised in the Balance sheet on a recurring basis, the company
determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation
at the end of each reporting period (i.e) based on the lowest level input that is significant to the fair value
measurement as a whole.

"(v) For the purpose of fair value disclosures, the company has determined the classes of assets and
liabilities based on the nature, characteristics and risks of the assets or liabilities and the level of the fair
value hierarchy as explained above."

(vi) The basis for fair value determination for measurement and / or disclosure purposes is detailed below:
"Investments in Equity

The fair value is determined by reference to their quoted prices at the reporting date. In the absence of the
quoted price, the fair value of the equity is measured using generally accepted valuation techniques."

"Non-derivative financial liabilities

The fair value of non-derivative financial liabilities viz, borrowings are determined for disclosure purposes
calculated based on the present value of future principal and interest cash flows, discounted at the market
rate of interest at the reporting date."

4.21 Significant Estimates and Judgements

"The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the accompanying
disclosures, and the disclosure of contingent liabilities.

Actual results could vary from these estimates. The estimates and underlying assumptions are reviewed on an on¬
going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the
revision effects only that period or in the period of the revision or future periods, if the revision affects both
current and future years. Accordingly, the management has applied the following estimates / assumptions /
judgements in preparation and presentation of financial statements:"

(i) Property, Plant and Equipment, Intangible Assets and Investment Properties

The residual values and estimated useful life of PPEs, Intangible Assets and Investment Properties are assessed by
technical team duly reviewed by the management at each reporting date. Wherever the management believes
that the assigned useful life and residual value are appropriate, such recommendations are accepted and adopted
for computation of depreciation/amortisation. Also, management judgement is exercised for classifying the asset
as investment properties or vice versa."

(ii) Current Taxes

Calculations of income taxes for the current period are done based on applicable tax laws and management's
judgement by evaluating positions taken in tax returns and interpretations of relevant provisions of law."

(iii) Contingent Liabilities

Management judgement is exercised for estimating the possible outflow of resources, if any, in respect of
contingencies / claims / litigations against the Company as it is not possible to predict the outcome of pending
matters with accuracy."

(iv) Impairment of Trade receivables

The impairment for financial assets are done based on assumptions about risk of default and expected loss rates.
The assumptions, selection of inputs for calculation of impairment are based on management judgement
considering the past history, market conditions and forward looking estimates at the end of each reporting date."

(v) Impairment of Non-financial assets (PPE/Intangible Assets / Investment Properties)

The impairment of non-financial assets is determined based on estimation of recoverable amount of such assets.
The assumptions used in computing the recoverable amount are based on management judgement considering
the timing of future cash flows, discount rates and the risks specific to the asset."

(vi) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities could not be measured based on quoted prices in
active markets, management uses valuation techniques including the Discounted Cash Flow (DCF) model, to
determine its fair value. The inputs to these models are taken from observable markets where possible, but
where this is not feasible, a degree of judgement is exercised in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit risk and volatility."