ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Orient Cables (India) Ltd.

4.1. Property Plant and Equipment (''PPE'')

An item is recognised as an asset, if and only if, it is probable that the future economic benefits
associated with the item will flow to the Company and its cost can be measured reliably. PPE are stated
at actual cost less accumulated depreciation and impairment loss, if any. Actual cost is inclusive of
freight, installation cost, duties, taxes and other incidental expenses for bringing the asset to its
working conditions for its intended use [net of tax credit, if any] and any cost directly attributable to
bring the asset into the location and condition necessary for it to be capable of operating in the manner
intended by the Management. It includes professional fees and borrowing costs for qualifying assets.

Property, Plant and Equipment and intangible assets are not depreciated or amortized once classified
as held for sale.

Significant Parts of an item of PPE (including major inspections) having different useful lives &
material value or other factors are accounted for as separate components. All other repairs and
maintenance costs are recognized in the statement of profit and loss as incurred.

Depreciation of these PPE commences when the assets are ready for their intended use. The estimated
useful lives and residual values are reviewed on an annual basis and if necessary, changes in estimates
are accounted for prospectively. Depreciation on subsequent expenditure on PPE arising on account
of capital improvement or other factors is provided for prospectively over the remaining useful life.

Depreciation is provided pro-rata to the period of use on the straight line method based on the
estimated useful life of the assets. The residual values are not more than 5% of the original cost of the
assets. The useful life of property, plant and equipment are as follows: -

a. For these classes of assets based on internal assessment and technical evaluation, the
management believes that the useful lives as given above best represent the period over
which the Management expects to use these assets. Hence, the useful lives for these assets is
different from the useful lives as prescribed under Part C of Schedule II of Companies Act
2013.

b. Depreciation on the amount capitalized on up-gradation of the existing assets is provided
over the balance life of the original asset

c. An item of PPE is de-recognized upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any gain or loss arising on the disposal
or retirement of an item of PPE is determined as the difference between the sales proceeds
and the carrying amount of the asset and is recognized in the Statement of Profit and Loss.

4.2. Intangible Assets and amortisation

Intangible assets are recognised when it is probable that the future economic benefits that are
attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably.
Intangible assets are stated at original cost net of tax/duty credits availed, if any, less accumulated
amortisation and cumulative impairment. Administrative and other general overhead expenses that
are specifically attributable to acquisition of intangible assets are allocated and capitalised as a part
of the cost of the intangible assets.

Amortisation periods and methods: Intangible assets are amortised on straight line basis over a
period ranging between 5-10 years which equates its economic useful life.

The amortization period and the amortization method are reviewed at least at each financial year
end. If the expected useful life of the asset is different from previous estimates, the change is
accounted for prospectively as a change in accounting estimate.

> De-recognition of intangible assets

An intangible asset is derecognized on disposal, or when no future economic benefits are expected
from use or disposal. Gains or losses arising from de-recognition of an intangible asset, measured as
the difference between the net disposal proceeds and the carrying amount of the asset, and are
recognized in the Statement of Profit and Loss when the asset is derecognized.

a. Intangible assets under development

All costs incurred in development, are initially capitalized as Intangible assets under development -
till the time these are either transferred to Intangible Assets on completion or expensed as Software
Development cost (including allocated depreciation) as and when determined of no further use.

4.3. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liabilit^yfceqojity instrument of another entity. The financial instruments are reragtfffJTjb o the

balance sheet when the Company becomes a party to the contractual provisions of the financial
instrument. The Company determines the classification of its financial instruments at initial
recognition.

1. Financial Assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition
of the financial asset. Purchases or sales of financial assets that require delivery of assets within a
time frame are recognized on the trade date, i.e., the date that the Company commits to purchase or
sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in following categories
based on business model of the entity:

• Debt instruments at amortized cost.

• Debt instruments at fair value through other comprehensive income (FVTOCI).

• Debt instruments, derivatives and equity instruments at fair value through profit or loss
(FVTPL).

• Equity instruments measured at fair value through other comprehensive income (FVTOCI).
Debt instruments at amortized cost

A ''debt instrument’ is measured at the amortized cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using
the effective interest rate (EIR) method.

Debt instrument at FVTOCI

A ‘debt instrument'' is classified as at the FVTOCI if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and
selling the financial assets, and

b) The asset’s contractual cash flows represent SPPI

Debt instruments included within the FVTOCI category are measured initially as well as at each
reporting date at fair value. Fair value movements are recognized in the other comprehensive income
(OC1). However, the Company recognizes interest income, impairment losses & reversals and foreign
exchange gain or loss in the P&L. On derecognition of the asset, cumulative gain or loy previously

recognized in OCI is reclassified from the equity to P&L. Interest earned whilst holding FVTOCI debt
instrument is reported as interest income using the EIR method.

Debt instrument at FVTPL

Any debt instrument, that does not meet the criteria for categorization as at amortized cost or as
FVTOCI, is classified as at FVTPL

in addition, the Company may elect to designate a debt instrument, which otherwise meets
amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so
reduces or eliminates a measurement or recognition inconsistency (referred to as ‘accounting
mismatch''). The Company has not designated any debt instrument as at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes
recognized in the P&L.

Equity investments (Other than investment in subsidiary)

All other equity investments are measured at fair value. For Equity instruments, the Company may
make an irrevocable election to present in other comprehensive income 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.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on
the instrument, excluding dividends, are recognized in the OCI. This amount is not recycled from OCI
to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss
within equity.

Financial assets are measured at fair value through profit or loss unless they are measured at
amortised cost or at fair value through other comprehensive income on initial recognition. The
transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value
through profit or loss are immediately recognised in Statement of Profit and Loss.

Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the Statement of Profit and Loss.

Investments in Mutual Funds

Investments in mutual funds are measured at fair value through profit or loss (FVTPL)

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 consist of balances with banks which are unrestricted for withdrawal and usage.

• retains the contractual rights to receive the cash flows of the financial asset, but assumes a
contractual obligation to pay the cash flows to one or more recipients.

Where the Company has transferred an asset, it evaluates whether it has transferred substantially
all risks and rewards of ownership of the financial asset. In such cases, the financial asset is de¬
recognized.

Where the Company has neither transferred a financial asset nor retains substantially all risks and
rewards of ownership of the financial asset, the financial asset is de-recognised if the Company has
not retained control of the financial asset. Where the Company retains control of the financial asset,
the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

Impairment of financial assets

The Company assesses at each date of balance sheet whether a financial asset or a group of financial
assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss
allowance. In determining the allowances for doubtful trade receivables, the Company has used a
practical expedient by computing the expected credit loss allowance for trade receivables based on
a provision matrix. The provision matrix considers historical credit loss experience and is adjusted
for forward looking information. For all other financial assets, expected credit losses are measured
at an amount equal to the 12-months expected credit losses or at an amount equal to the life time
expected credit losses if the credit risk on the financial asset has increased significantly since initial
recognition.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/
expense in the statement of profit and loss (P&L).

II. Financial liabilities

Financial liabilities and equity instruments issued by the company are classified according to the
substance of the contractual arrangements entered into and the definitions of a financial liability and
an equity instrument.

Initial recognition and measurement

Financial liabilities are recognised when the company becomes a party to the contractual provisions
of the instrument. Financial liabilities are initially measured at the amortised cost unless at initial
recognition, they are classified as fair value through profit and loss.

Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the effective interest rate
method. Financial liabilities carried at fair value through profit or loss are measured at fair value
with all changes in fair value recognised in the statement of profit and loss.

Trade and Other Payables

These amounts represent liabilities for goods and services provided to the Company prior to the end
of financial period which are unpaid. Trade and other payables are presented as current liabilities
unless payment is not due within 12 months after the reporting period. They are recognized initially
at tk^^E^^alue and subsequently measured at amortised cost using the effective interest ryerfi

Loans and Borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at
amortized cost using the B1R method. Gains and losses are recognized in profit or loss when the
liabilities are derecognized as well as through the E1R amortization process.

Financial Guarantee Contracts

Financial guarantee contracts are recognised initially as a liability at 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
requirements of Ind AS 109 and the amount recognised less cumulative amortisation.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled
or expires.

III. Derivative Financial instruments:

The Company uses derivative financial instruments, such as forward currency contracts, to mitigate
its foreign currency fluctuation risks. Such derivative financial instruments are initially recognised
at fair value on the date on which a derivative contract is entered into, and are subsequently
remeasured at fair value at each reporting date. Gain or loss arising from changes in the fair value is
recognised in the Statement of Profit and Loss.

Derivatives are carried as financial assets when the fair value is positive, and as financial liabilities
when the fair value is negative.

The Company enters into derivative financial instruments, viz., foreign exchange forward contracts,
interest rate swaps and cross currency swaps to manage its exposure to interest rate, foreign
exchange rate risks and commodity prices. The Company does not hold derivative financial
instruments for speculative purposes,

IV. Hedge Accounting:

The Company designates certain hedging instruments in respect of foreign currency risk as cash flow
hedges. At the inception of a hedge relationship, the Company formally designates and documents
the hedge relationship to which the Company wishes to apply hedge accounting and the risk
management objective and strategy for undertaking the hedge. The documentation includes the
Company''s risk management objective and strategy for undertaking hedge, the hedging/economic
relationship, the hedged item or transaction, the nature of the risk being hedged, hedge ratio and
how the entity will assess the effectiveness of changes in the hedging instrument’s fair value in
offsetting the exposure to changes in the hedged item''s fair value or cash flows attributable to the
hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair
value or cash flows, and are assessed on an ongoing basis to determine that they actually have been
highly effective throughout the financial reporting periods for which they were designated.

The effective portion of changes in the fair value of the designated portion of derivatives that qualify
as cash flow hedges is recognised in Other Comprehensive Income and accumulated under the
heading ofcash flow hedging reserve. The gain or loss relating to the ineffective portion is recognised
immediately in the Statement of Profit and Loss. ___

Amounts previously recognised in Other Comprehensive Income and accumulated in other equity
relating to (effective portion as described above) are reclassified to the Statement of Profit and Loss
in the periods when the hedged item affects statement of profit & loss. However, when the hedged
forecast transaction results in the recognition of a non-financial asset or a non-financial liability, such
gains and losses are transferred from equity and included in the initial measurement of the cost of
the non-financia! asset or non-financial liability.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or
exercised, without replacement or rollover (as part of the hedging strategy), or if its designation as a
hedge is revoked, or when it no longer qualifies for hedge accounting. Any gain or loss recognised in
Other Comprehensive Income and accumulated in other equity at that time remains in other equity,
and is recognised when the forecast transaction is ultimately recognised in the Statement of Profit
and Loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in
other equity is recognised immediately in the Statement of Profit and Loss.

4.4. fmpairment ofNon-Financial Assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment testing for an asset is required, the
Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of
an asset’s or cash-generating unit''s (CGU) fair value less costs of disposal and its value in use.

Recoverable amount is determined for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets or group of assets.

When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount

In assessing value in use, the estimated future cash flows are discounted to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset. In determining fair value less costs of disposal, recent market transactions
are considered. If no such transactions can be identified, an appropriate valuation model is used.
Impairment losses of continuing operations, including impairment on inventories, are recognized in
the statement of profit and loss.

A previously recognized impairment loss (except for goodwill) is reversed only if there has been a
change in the assumptions used to determine the asset''s recoverable amount since the last
impairment loss was recognized. The reversal is limited to the carrying amount of the asset.

4.5. Inventories

a) Basis of valuation:

1. Inventories including work-in-progress, other than scrap materials are valued at lower
of cost and net realizable value after providing cost of Obsolescence, if any. The cost is
determined using weighted average cost method.

2. Inventory of scrap materials have been valued at net realizable value

b) Method of valuation:

1. Cost of raw materials comprises all costs of purchase, duties, taxes (other than those
subsequently recoverable from tax authorities) and all other costs incurred in bringing
the inventories to their present location and condition.

2. Cost of finished goods and work-in-progress includes direct fixed and variable
production overheads and indirect taxes as applicable. Fixed production overheads are
allocated on the basis of normal capacity of production facilities.

3. Cost of traded goods comprises all costs of purchase, duties, taxes (other than those
subsequently recoverable from tax authorities) and all other costs incurred in bringing
the inventories to their present location and condition.

4. Net realizable value is the estimated selling price in the ordinary course of business, less
estimated costs of completion and estimated costs necessary to make the sale.

4.6. Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction or production of
qualifying asset are capitalized as part of cost of such asset. Other borrowing costs are recognized
as an expense in the period in which they are incurred.

Borrowing costs consists of interest and other costs that an entity incurs in connection with the
borrowing of funds.

4.7. Investments in subsidiaries, associates and joint ventures

The Company records the investments in subsidiaries, associates and joint ventures at cost less
accumulated impairment losses, if any. Where an indication of impairment exists, the carrying
amount of the investment is assessed and written down immediately to its recoverable amount.

When the Company issues financial guarantees on behalf of subsidiaries, initially it measures the
financial guarantees at their fair values and subsequently measures at the higher of the amount of
loss allowance determined as per impairment requirements of Ind AS 109 and the amount
recognized less cumulative amortization.

The Company records the initial fair value of financial guarantee as deemed investment with a
corresponding liability recorded as deferred revenue. Such deemed investment is added to the
carrying amount of investment in subsidiaries.

Deferred revenue is recognized in the Statement of Profit and Loss over the remaining period of
financial guarantee issued.

The Company reviews its carrying value of investments carried at cost (net of impairment, if any)
annually, or more frequently when there is indication for impairment. If the recoverable amount is
less than its carrying amount, the impairment loss is accounted for in the statement of profit and loss.

4.8. Foreign Currency Transactions

The functional currency of the Company is Indian Rupees which represents the currency of the
ecptffijijrp^mvironment in which it operates.

Transactions in currencies other than the Company''s functional currency are recognized at the rates
of exchange prevailing at the dates of the transactions. Monetary items denominated in foreign
currency at the year end and not covered under forward exchange contracts are translated at the
functional currency spot rate of exchange at the reporting date.

Any income or expense on account of exchange difference between the date of transaction and on
settlement or on translation is recognized in the profit and loss account as income or expense.

Non-monetary items that are measured at fair value in a foreign currency are translated using the
exchange rates at the date when the fair value was determined. Translation difference on such assets
and liabilities carried at fair value are reported as part of fair value gain or loss.

In case of forward exchange contracts, the premium or discount arising at the inception of such
contracts is amortized as income or expense over the life of the contract. Further exchange difference
on such contracts i.e. difference between the exchange rate at the reporting /settlement date and the
exchange rate on the date of inception of contract/the last reporting date, is recognized as
income/expense for the period.

4.9. Taxation

The income tax expense or credit for the period is the tax payable on the current period''s taxable
income based on the applicable income tax rate adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences and to unused tax losses, if any.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively
enacted at the end of the reporting period. Management periodically evaluates positions taken in tax
returns with respect to situations in which applicable tax regulation is subject to interpretation. It
establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.

Deferred income tax is provided in full, using the liability method, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the Financial Statement.
However, deferred tax liabilities are not recognized if they arise from the initial recognition of
goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset
or liability in a transaction other than a business combination that at the time of the transaction
affects neither accounting profit nor taxable profit (tax loss). 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 asset is realized or the
deferred income tax liability is settled.

The carrying amount of deferred tax assets are reviewed at the end of each reporting period and are
recognized only if it is probable that future taxable amounts will be available to utilize those
temporary differences and losses.

Deferred tax liabilities are not recognized for temporary differences between the carrying amount
and tax bases of investments in subsidiaries, where the Company is able to control the timing of the
reversal of the temporary differences and it is probable that the differences will not reverse in the
foreseeable future.

Deferred tax assets are not recognized for temporary differences between the carrying amount and
tax bases of investments in subsidiaries, associates and interest in joint arrangements witgr^u^is not
probable that the differences will reverse in the foreseeable future and taxable profit will not be
available against which the temporary difference can be utilized.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current
tax assets and liabilities and when the deferred tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset
and intends either to settle on a net basis, or to realize the asset and settle the liability
simultaneously.

4.10. Revenue Recognition

The company recognizes revenue in accordance with [nd- AS 115. Revenue is recognized upon
transfer of control of promised products or services to customers in an amount that reflects the
consideration that the Company expects to receive in exchange for those products or services.

Revenues in excess of invoicing are classified as contract assets [which may also refer as unbilled
revenue) while invoicing in excess of revenues are classified as contract liabilities [which may also
refer to as unearned revenues).

The Company presents revenues net of indirect taxes in its Statement of Profit and loss.

The specific recognition criteria from various stream of revenue is described below:

a. Revenue from the sale of goods is recognized upon transfer of control of promised products,
usually on delivery of the goods (i.e. when performance obligation is satisfied) at the amount of
transaction price (net of variable consideration) allocated to that performance obligation. The
transaction price of goods sold and services rendered is net of returns and allowances, trade
discounts and volume rebates offered by the Company as part of the contract.

b. Revenue from Services is recognized when respective service is rendered and accepted by the
customer.

c. Capacity swaps

The exchange of network capacity is recognised at fair value unless the transaction lacks
commercial substance or the fair value of neither the capacity received nor the capacity given is
reliably measurable.

d. Interest income

For all debt instruments measured either at amortized cost or at fair value through other
comprehensive income, interest income is recorded using the effective interest rate (EIR).

e. Rental income

Rental income arising from operating leases or on investment properties is accounted for on a
straight-line basis over the lease terms and is included in other non-operating income in the
statement of profit and loss.

f. Insurance Claims

Insurance claims are accounted for as and when admitted by the concerned authority.

g. Dividend Income

Dividend income on investments is recognised when the right to receive dividend is established.

h. Other Income

Other Income is accounted for on accrual basis except, where the receipt of income is uncertain.

4.11. Employee Benefits
Short Term Employee Benefits

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled
wholly within 12 months after the end of the period in which the employees render the related
service are recognized in respect of employees’ services up to the end of the reporting period and
are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are
presented as current employee benefit obligations in the balance sheet.

Post-employment obligations

i. Defined contribution plans

Provident Fund and employees'' state insurance schemes

All employees of the Company are entitled to receive benefits under the Provident Fund, which is a
defined contribution plan. Both the employee and the employer make monthly contributions to the
plan at a predetermined rate (presently 12%) of the employees’ basic salary. These contributions
are made to the fund administered and managed by the Government of India. In addition, some
employees of the Company are covered under the employees’ state insurance schemes, which are
also defined contribution schemes recognized and administered by the Government of India.

The Company''s contributions to both these schemes are expensed in the Statement of Profit and Loss.
The Company has no further obligations under these plans beyond its monthly contributions.

ti. Defined benefit plans

Gratuity

The Company provides for gratuity obligations through a defined benefit retirement plan (the
‘Gratuity Plan'') covering all employees. The Gratuity Plan provides a lump sum payment to vested
employees at retirement or termination of employment based on the respective employee salary and
years of employment with the Company. The Company provides for the Gratuity Plan based on
actuarial valuations in accordance with Indian Accounting Standard 19 (revised), "Employee
Benefits". The present value of obligation under gratuity is determined based on actuarial valuation
using Project Unit Credit Method, which recognizes each period of service as giving rise to additional
unit of employee benefit entitlement and measures each unit separately to build up the final
obligation.

Defined retirement benefit plans comprising of gratuity, un-availed leave, post-retirement medical
benefits and other terminal benefits, are recognized based on the present value of defined benefit
obligation which is computed using the projected unit credit method, with actuarial valuations being
carried out at the end of each annual reporting period. These are accounted either.as current
employ££LCQst or included in cost of assets as permitted. (Mgs,

Leave Encashment

No provision for Leave encashment due to the employees has been made and the same shall be
accounted for on payment basis at the time of encashment/payment or claim made by the employee.

Hi. Actuarial gains and losses are recognized in PCI as and when incurred.

The net interest cost is calculated by applying the discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense
in the statement of profit and loss.

Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling
(if applicable) and the return on plan assets (excluding net interest as defined above),are recognized
in other comprehensive income except those included in cost of assets as permitted in the period in
which they occur and are not subsequently reclassified to profit or loss.

The retirement benefit obligation recognized in the Standalone Financial Statements represents the
actual deficit or surplus in the Company''s defined benefit plans. Any surplus resulting from this
calculation is limited to the present value of any economic benefits available in the form of reductions
in future contributions to the plans.

Termination benefits

Termination benefits are recognized as an expense in the period in which they are incurred.

4.12.Leases
As a lessee

The Company''s lease asset classes primarily consist of leases for land and buildings. The Company
assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a
lease if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration. To assess whether a contract conveys the right to control the use of an
identified asset, the Company assesses whether:

i. the contract involves the use of an identified asset

ii. the Company has substantially all of the economic benefits from use of the asset through
the period of the lease and

iii. the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset ("ROU") and
a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with
a term of twelve months or less (short-term leases) and low value leases. For these short-term and
low value leases, the Company recognizes the lease payments as an operating expense on a straight-
line basis over the term of the lease.

Certain lease arrangements include the options to extend or terminate the lease before the end of
the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain
that they will be exercised.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or prior to the commencement date of the lease
nj^is^wdnitial direct costs less any lease incentives. They are subsequently measured at cost less
^je£brnufe™i depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the
shorter of the lease term and useful life of the underlying asset Right of use assets 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. Lease period for Building taken on lease is ranging from 2 to 3 Years.

The lease liability is initially measured at amortized cost at the present value of the future lease
payments. The lease payments are discounted using the interest rate implicit in the lease or, if not
readily determinable, using the incremental borrowing rates in the country of domicile of these
leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use
asset if the Company changes its assessment if whether it will exercise an extension or a termination
option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease
payments have been classified as financing cash flows.

The company''s lease labilities are included in Other financial liabilities.

Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those
leases that have a lease term of 12 months or less from the commencement date and do not contain
a purchase option). It also applies the lease of low-value assets recognition exemption to leases that
are considered to be low value. Lease payments on short-term leases and leases of low-value assets
are recognised as expense on a straight-line basis over the lease term.

4.13. Segment Reporting

Identification of segments:

Operating segments are reported in a manner consistent with the internal financial reporting
provided to the Chief Operating Decision Maker (CODM) i.e. Chief Executive Officer. CODM monitors
the operating results of all product segments separately for the purpose of making decisions about
resource allocation and performance assessment. Segment performance is evaluated based on profit
and loss and is measured consistently with profit and loss in the Standalone Financial Statements.
The primary reporting of the Company has been performed on the basis of business segments. The
analysis of geographical segments is based on the areas in which the Company''s products are sold or
services are rendered.

Allocation of common costs:

Common allocable costs are allocated to each segment according to the relative contribution of each
segment to the total common costs.

Unaliocated items:

The Corporate and other segments include general corporate income and expense itenjji^which are
m^CTgJTboated to anv business segment. (1/

4.14. Cash & Cash Equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term
balances (with an original maturity of three months or less from the date of acquisition), highly liquid
investments that are readily convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.

4.15. Employee Share Based Payment

Equity- settled share- based payments to employees are measured at the fair value of the employee
stock options at the grant. The fair value determined at the grant date of the equity- settled share -
based payments is amortised over the vesting period, based on the Company''s estimate of equity
instruments that will eventually vest, with a corresponding increase in equity. At the end of each
reporting period, the Company revises its estimate of the number of equity instruments expected to
vest. The impact of the revision of the original estimates, if any, is recognised in the Statement of
Profit and Loss such that the cumulative expense reflects the revised estimate, with a corresponding
adjustment to the Share based payment reserve outstanding.

The Company measures the cost of equity- settled transactions with employees using Black- Scholes
model to determine the fair value of the liability incurred on the grant date. Estimating fair value for
share- based payment transactions require determination of the most appropriate valuation model,
which is dependent on the terms and conditions of the grant.

This estimate also requires determination of the most appropriate inputs to the valuation model
including the expected life of the share option, volatility and dividend yield and making assumptions
about them.

The dilutive effect, if any outstanding options is reflected as additional share dilution in computation
of diluted earnings per share.

4.16. Prior Period Items

The Company has adopted following materiality threshold limits in the recognition of Prior period
expenses/incomes: