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

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating
interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated
future cash payments through the expected life of the financial liability, or (where appropriate) a shorter period,
to the net carrying amount on initial recognition.

Borrowings and Security Deposits

Any difference between the proceeds (net of transaction costs) and the repayment amount is recognized in profit
or loss over the period of the liability and subsequently measured at amortized cost using the effective interest
method. Gains and losses are recognized in the profit or loss when the liabilities are derecognized as well as
through the EIR amortization process.

Equity instruments

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

Foreign exchange gains and losses

For financial liabilities that are denominated in a foreign currency and are measured at amortized cost at the end
of each reporting period, the foreign exchange gains and losses are determined based on the amortized cost of the
instruments and are recognized in ‘Other income’.

The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and
translated at the spot rate at the end of the reporting period. For financial liabilities that are measured as at FVTPL,
the foreign exchange component forms part of the fair value gains or losses and is recognized in the profit and
loss.

Cash and cash equivalent

Cash comprises cash on hand, cheques and demand drafts on hand, balances with banks in current accounts /
demand deposits. 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.

Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted average number of
equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit / (loss)
after tax as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential
equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share
and the weighted average number of equity shares which could have been issued on the conversion of all dilutive
potential equity shares.

Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net
profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted
as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares
are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value
of the outstanding shares). Dilutive potential equity shares are determined independently for each period
presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse
share splits and bonus shares, as appropriate.

Operating Cycle
Based on the nature of products / activities of the Company and the normal time between acquisition of assets and

their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the
purpose of classification of its assets and liabilities as current and non-current.

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