2. MATERIAL ACCOUNTING POLICY
INFORMATION

i) Basis of preparation of financial
statements

The financial statements of the Company
have been prepared and presented in
accordance with Indian Accounting
Standards (Ind AS) notified under the
Companies (Indian Accounting Standards)
Rules, 2015 as amended from time to time
and presentation requirements of Division
II of Schedule III to the Companies Act,
2013, (Ind AS compliant Schedule III), as
applicable to the financial statements.

Accounting policies have been
consistently applied except where a newly
issued accounting standard is initially
adopted or a revision to an existing
accounting standard requires a change in
the accounting policy hitherto in use.

The financial statements have been
prepared on an accrual basis as a going
concern and under the historical cost
convention, except for certain financial
assets and financial liabilities that are
measured at fair value and net defined
benefit obligations as required under
relevant Ind AS.

Items included in the financial statements
of the Company are measured using
the currency of the primary economic
environment in which the Company
operates (“the functional currency”). The
financial statements are presented in
Indian National Rupee (‘INR'), which is the
Company's functional and presentation
currency, and all values are rounded to
the nearest millions up to two decimals,
except when otherwise stated.

The financial statements provide
comparative information in respect of
the previous year.

ii) Business combinations and goodwill

Business combinations are accounted
for using the acquisition method. The
cost of an acquisition is measured as the
aggregate of the consideration transferred
measured at acquisition date fair value
and the amount of any non-controlling
interests in the acquiree. For each business
combination, the Company elects
whether to measure the non-controlling
interests in the acquiree at fair value or at
the proportionate share of the acquiree's
identifiable net assets. Acquisition-related
costs are expensed as incurred.

At the acquisition date, the identifiable
assets acquired, and the liabilities assumed
are recognized at their acquisition date

fair values. For this purpose, the liabilities
assumed include contingent liabilities
representing present obligation and they
are measured at their acquisition fair
values irrespective of the fact that outflow
of resources embodying economic
benefits is not probable. However, the
following assets and liabilities acquired in
a business combination are measured at
the basis indicated below:

a) Deferred tax assets or liabilities, and the
assets or liabilities related to employee
benefit arrangements are recognized
and measured in accordance with
Ind AS 12 Income Tax and Ind AS 19
Employee Benefits respectively.

b) Potential tax effects of temporary
differences and carry forwards
of an acquiree that exist at the
acquisition date or arise as a result
of the acquisition are accounted in
accordance with Ind AS 12.

c) Liabilities or equity instruments
related to share-based payment
arrangements of the acquiree or share
- based payments arrangements
of the Company entered into to
replace share-based payment
arrangements of the acquiree are
measured in accordance with Ind AS
102 Share-based Payments at the
acquisition date.

d) Assets (or disposal groups) that are
classified as held for sale in accordance
with Ind AS 105 Non-current Assets
Held for Sale and Discontinued
Operations are measured in
accordance with that Standard.

e) Reacquired rights are measured at a
value determined on the basis of the
remaining contractual term of the
related contract. Such valuation does
not consider potential renewal of the
reacquired right.

When the Company acquires a business, it
assesses the financial assets and liabilities
assumed for appropriate classification
and designation in accordance with
the contractual terms, economic

circumstances and pertinent conditions
as at the acquisition date. This includes
the separation of embedded derivatives in
host contracts by the acquiree.

If the business combination is achieved
in stages, any previously held equity
interest is re-measured at its acquisition
date fair value and any resulting gain or
loss is recognized in profit or loss or other
comprehensive income, as appropriate.

Any contingent consideration to be
transferred by the acquirer is recognized at
fair value at the acquisition date. Contingent
consideration classified as an asset or
liability that is a financial instrument and
within the scope of Ind AS 109 Financial
Instruments, is measured at fair value with
changes in fair value recognized in profit or
loss. If the contingent consideration is not
within the scope of Ind AS 109 Financial
Instruments, is measured at fair value with
changes in fair value recognised in profit
or loss in accordance with Ind AS 109. If
the contingent consideration is not within
the scope of Ind AS 109, it is measured in
accordance with the appropriate Ind AS
and shall be recognised in profit or loss.

Contingent consideration that is classified
as equity is not re-measured at subsequent
reporting dates and subsequent its
settlement is accounted for within equity.

Goodwill is initially measured at cost,
being the excess of the aggregate of
the consideration transferred and the
amount recognized for non-controlling
interests, and any previous interest held,
over the net identifiable assets acquired
and liabilities assumed. If the fair value
of the net assets acquired is in excess of
the aggregate consideration transferred,
the Company re-assesses whether it
has correctly identified all of the assets
acquired and all of the liabilities assumed
and reviews the procedures used to
measure the amounts to be recognized at
the acquisition date. If the reassessment
still results in an excess of the fair value
of net assets acquired over the aggregate
consideration transferred, then the gain
is recognized in other comprehensive
income (OCI) and accumulated in equity
as capital reserve. However, if there is
no clear evidence of bargain purchase,
the entity recognizes the gain directly in
equity as capital reserve, without routing
the same through OCI.

After initial recognition, goodwill is
measured at cost less any accumulated
impairment losses. For the purpose of
impairment testing, goodwill acquired
in a business combination is, from the
acquisition date, allocated to each of the
Company's cash-generating units that are
expected to benefit from the combination,
irrespective of whether other assets or
liabilities of the acquiree are assigned
to those units.

A cash generating unit to which goodwill
has been allocated is tested for impairment
annually, or more frequently when there
is an indication that the unit may be
impaired. If the recoverable amount of the
cash generating unit is less than its carrying
amount, the impairment loss is allocated
first to reduce the carrying amount of any
goodwill allocated to the unit and then
to the other assets of the unit pro rata
based on the carrying amount of each
asset in the unit. Any impairment loss for
goodwill is recognized in profit or loss. An
impairment loss recognized for goodwill is
not reversed in subsequent periods.

Where goodwill has been allocated to
a cash-generating unit and part of the
operation within that unit is disposed
of, the goodwill associated with the
disposed operation is included in the
carrying amount of the operation when
determining the gain or loss on disposal.
Goodwill disposed in these circumstances
is measured based on the relative values
of the disposed operation and the portion
of the cash-generating unit retained.

If the initial accounting for a business
combination is incomplete by the end
of the reporting period in which the
combination occurs, the Company reports
provisional amounts for the items for
which the accounting is incomplete.

Those provisional amounts are adjusted
through goodwill during the measurement
period, or additional assets or liabilities are
recognized, to reflect new information
obtained about facts and circumstances
that existed at the acquisition date
that, if known, would have affected the
amounts recognized at that date. These
adjustments are called as measurement
period adjustments. The measurement
period does not exceed one year from the
acquisition date.

iii) Current versus non-current classification

Based on the time involved between
the acquisition of assets for processing
and their realization in cash and cash
equivalents, the Company has identified
twelve months as its operating cycle for
determining current and non-current
classification of assets and liabilities in
the balance sheet.

iv) Property, plant and equipment

Property, plant and equipment are stated
at cost, net of accumulated depreciation
and accumulated impairment losses,
if any. The cost comprises purchase
price and other directly attributable
cost incurred in bringing the asset to its
working condition for the intended use
and initial estimate of decommissioning,
restoring and similar liabilities. Any trade
discounts and rebates are deducted
in arriving at the purchase price. All
other repair and maintenance costs are
recognized in profit or loss as incurred.

Subsequent costs are capitalized on
the carrying amount or recognized as a
separate asset, as appropriate, only when
future economic benefits associated
with the item are probable to flow to the
Company and cost of the item can be
measured reliably.

The gain or loss arising on the disposal or
retirement of an item of property, plant
and equipment 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 on the date of disposal or retirement.

v) Depreciation on property, plant and
equipment

Depreciation on property, plant and
equipment is calculated on a pro-rata
basis from the date on which the asset
is ready to use, using written down value
method ("WDV") over the useful lives of
the assets estimated by the management,
which are in line with the useful lives
prescribed under Schedule II to the
Companies Act, 2013.

The Company has used the following rates
to provide depreciation on its property,
plant and equipment:

The residual values, useful lives and
methods of depreciation of property,
plant and equipment are reviewed at
each financial year end and adjusted
prospectively, if appropriate.

vi) Intangible assets

Intangible assets acquired separately are
measured on initial recognition at cost.
The cost of intangible assets acquired in
a business combination is their fair value
at the date of acquisition. Following initial
recognition, intangible assets are carried
at cost less accumulated amortization.
Internally generated intangible assets,
excluding capitalized development costs, are
not capitalized and expenditure is reflected
in the statement of profit and loss in the
year in which the expenditure is incurred.

The useful lives of intangible assets are
assessed as either finite or indefinite.

Intangible assets with finite lives are
amortised over the useful economic life and
assessed for impairment whenever there is
an indication that the intangible asset may
be impaired. The amortisation period and
the amortisation method for an intangible

asset with a finite useful life are reviewed at
least at the end of each reporting period.
Changes in the expected useful life or the
expected pattern of consumption of future
economic benefits embodied in the asset
are considered to modify the amortisation
period or method, as appropriate, and are
treated as changes in accounting estimates.
The amortisation expense on intangible
assets with finite lives is recognised in the
statement of profit and loss unless such
expenditure forms part of carrying value
of another asset.

Intangible assets with indefinite useful
lives are not amortised, but are tested for
impairment annually, either individually
or at the cash-generating unit level. The
assessment of indefinite life is reviewed
annually to determine whether the
indefinite life continues to be supportable. If
not, the change in useful life from indefinite
to finite is made on a prospective basis.

An intangible asset is derecognised upon
disposal (i.e., at the date the recipient
obtains control) or when no future
economic benefits are expected from
its use or disposal. Gains or losses arising
from derecognition of an intangible asset
are 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.

Research and development costs

Research costs are expensed as incurred.
Development expenditure incurred on
an individual project is recognized as an
intangible asset when the Company can
demonstrate all the following:

• The technical feasibility of completing
the intangible asset so that it will be
available for use or sale

• Its intention to complete the asset

• Its ability to use or sell the asset

• How the asset will generate future
economic benefits

• The availability of adequate resources
to complete the development and to
use or sell the asset

• The ability to measure reliably the
expenditure attributable to the
intangible asset during development.

Following the initial recognition of the
development expenditure as an asset, the
cost model is applied requiring the asset
to be carried at cost less any accumulated
amortization and accumulated
impairment losses. Amortization of
the asset begins when development is
complete, and the asset is available for
use. It is amortized on a straight-line basis
over the period of expected future benefit
from the related project. Amortization is
recognized in the statement of profit and
loss. During the period of development,
the asset is tested for impairment annually.

A summary of amortization periods
applied to the Company's intangible
assets is as below:

vii) Leases

The determination of whether an
arrangement is, or contains a lease
is based on the substance of the
arrangement at the inception of the
lease. The arrangement is, or contains, a
lease if fulfilment of the arrangement is
dependent on the use of a specific asset
or assets and the arrangement conveys
a right to use the asset or assets, even if
that right is not explicitly specified in
an arrangement.

Company as a lessee

The Company applies a single recognition
and measurement approach for all leases,
except for short-term leases and leases of
low-value assets. The Company recognises
lease liabilities to make lease payments
and right-of-use assets representing the
right to use the underlying assets.

a) Right-of-use assets - The Company
recognises right-of-use assets at
the commencement date of the
lease (i.e., the date the underlying
asset is available for use). Right-of-
use assets are measured at cost, less
any accumulated depreciation and
impairment losses, and adjusted for
any remeasurement of lease liabilities.
The cost of right-of-use assets
includes the amount of lease liabilities
recognised, initial direct costs
incurred, and lease payments made
at or before the commencement date
less any lease incentives received.
Right of use assets are depreciated on
a straight-line basis over the period of
lease term (refer note 30).

If ownership of the leased asset
transfers to the Company at the end
of the lease term or the cost reflects
the exercise of a purchase option,
depreciation is calculated using the
estimated useful life of the asset.

The right-of-use assets are also
subject to impairment. Refer to the
accounting policies in section (ix)
Impairment of non-financial assets.

b) Lease Liabilities - At the

commencement date of the lease, the
Company recognises lease liabilities
measured at the present value of lease
payments to be made over the lease
term. The effective interest rate for the
lease liabilities is 9.25% per annum.
The lease payments include fixed
payments (including in substance
fixed payments) less any lease
incentives receivable, variable lease
payments that depend on an index
or a rate, and amounts expected to be
paid under residual value guarantees.
The lease payments also include the
exercise price of a purchase option
reasonably certain to be exercised
by the Company and payments of
penalties for terminating the lease, if
the lease term reflects the Company
exercising the option to terminate.
In calculating the present value of

lease payments, the Company uses
its incremental borrowing rate at the
lease commencement date because
the interest rate implicit in the lease
is not readily determinable. After the
commencement date, the amount of
lease liabilities is increased to reflect
the accretion of interest and reduced
for the lease payments made. In
addition, the carrying amount of lease
liabilities is remeasured if there is a
modification, a change in the lease
term, a change in the lease payments
(e.g., changes to future payments
resulting from a change in an index
or rate used to determine such
lease payments) or a change in the
assessment of an option to purchase
the underlying asset.

The Company's lease liabilities
are included in financial liabilities
(refer note 30).

c) Short-term leases and leases of low-

value assets - The Company applies
the short-term lease recognition
exemption to its short-term leases
of rent on property and on rent of
computer equipment (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 of office equipment 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.

vii) Impairment of non-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. The 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 groups of assets.
Where 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 taken into account. If
no such transactions can be identified,
an appropriate valuation model is used.
These calculations are corroborated by
valuation multiples, quoted share prices
for publicly traded companies or other
available fair value indicators.

The Company bases its impairment
calculation on detailed budgets and
forecast calculations which are prepared
separately for each of the Company's cash¬
generating units to which the individual
assets are allocated. These budgets and
forecast calculations are generally covering
a period of five years. For longer periods,
a long-term growth rate is calculated and
applied to project future cash flows after the
fifth year. To estimate cash flow projections
beyond periods covered by the most
recent budgets/forecasts, the Company
extrapolates cash flow projections in the
budget using a steady or declining growth
rate for subsequent years. In any case, this
growth rate does not exceed the long¬
term average growth rate for the products,
industries, or country or countries in which
the Company operates, or for the market in
which the asset is used.

Impairment losses of operations, are
recognized in the statement of profit
and loss, except for properties previously
revalued with the revaluation surplus taken
to OCI. For such properties, the impairment
is recognised in OCI up to the amount of
any previous revaluation surplus.

After impairment, depreciation is provided
on the revised carrying amount of the
asset over its remaining useful life.

For assets excluding goodwill, an
assessment is made at each reporting
date as to whether there is any indication
that previously recognized impairment
losses may no longer exist or may have
decreased. If such indication exists, the
Company estimates the asset's or cash¬
generating unit's recoverable amount. A
previously recognized impairment loss 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 so that the carrying
amount of the asset does not exceed
its recoverable amount, nor exceed the
carrying amount that would have been
determined, net of depreciation, had
no impairment loss been recognized for
the asset in prior years. Such reversal is
recognized in the statement of profit and
loss unless the asset is carried at a revalued
amount, in which case, the reversal is
treated as a revaluation increase.

Goodwill is tested for impairment annually
and when circumstances indicate that the
carrying value may be impaired.

Impairment is determined for goodwill
by assessing the recoverable amount of
each CGU (or group of CGUs) to which the
goodwill relates. When the recoverable
amount of the CGU is less than its carrying
amount, an impairment loss is recognised.
Impairment losses relating to goodwill
cannot be reversed in future periods.

Intangible assets with indefinite useful
lives are tested for impairment annually at
the CGU level, as appropriate, and when
circumstances indicate that the carrying
value may be impaired.

ix) Financial instruments

A financial instrument is any contract
that gives rise to a financial asset of one
entity and a financial liability or equity
instrument of another entity.

Financial assets

Initial recognition and measurement

Financial assets are classified, at initial
recognition, as subsequently measured at
amortised cost, fair value through other
comprehensive income (OCI), and fair
value through profit or loss.

The classification of financial assets at
initial recognition depends on the financial
asset's contractual cash flow characteristics
and the Company's business model for
managing them. With the exception of
trade receivables that do not contain a
significant financing component or for
which the Company has applied the
practical expedient, the Company initially
measures a f inancial asset at its fair value
plus, in the case of a financial asset not at
fair value through profit or loss, transaction
costs. Trade receivables that do not
contain a significant financing component
or for which the Company has applied
the practical expedient are measured
at the transaction price determined
under Ind AS 115.

In order for a financial asset to be
classified and measured at amortised
cost or fair value through OCI, it needs
to give rise to cash flows that are ‘solely
payments of principal and interest (SPPI)'
on the principal amount outstanding. This
assessment is referred to as the SPPI test
and is performed at an instrument level.
Financial assets with cash flows that are
not SPPI are classified and measured at
fair value through profit or loss, irrespective
of the business model.

The Company's business model for
managing financial assets refers to how
it manages its financial assets in order to
generate cash flows. The business model
determines whether cash flows will
result from collecting contractual cash
flows, selling the financial assets, or both.
Financial assets classified and measured at
amortised cost are held within a business
model with the objective to hold financial
assets in order to collect contractual cash
flows while financial assets classified and

measured at fair value through OCI are held
within a business model with the objective
of both holding to collect contractual cash
flows and selling.

Subsequent measurement

For purposes of subsequent
measurement, financial assets are
classified in four categories:

• Financial assets at amortized cost
(debt instruments)

• Financial assets at fair value through
other comprehensive income (FVTOCI)
with recycling of cumulative gains and
losses (debt instruments)

• Financial assets at fair value through
profit or loss (FVTPL)

• Financial assets measured at fair
value through other comprehensive
income (FVTOCI) with no recycling
of cumulative gains and losses upon
derecognition (equity instruments)

Financial assets at amortised cost (debt
instruments)

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.

This category is most relevant to the
Company. After initial measurement,
such financial assets are subsequently
measured at amortized cost using the
Effective Interest Rate (“EIR”) method.
Amortized cost is calculated by taking
into account any discount or premium
on acquisition and fees or costs that
are an integral part of the 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. This category generally applies
to trade and other receivables. For more
information on receivables, refer note 10.

Financial assetsat fair value through profit
or loss

Financial assets at fair value through
profit or loss are carried in the balance
sheet at fair value with net changes in
fair value recognised in the statement of
profit and loss.

This category includes derivative
instruments and listed equity investments
which the Company had not irrevocably
elected to classify at fair value through OCI.
Dividends on listed equity investments
are recognised in the statement of profit
and loss when the right of payment has
been established.

Investment in subsidiary

Investments in subsidiary are carried at
cost less allowance for impairment, if any.
The Company reviews its carrying value
of investments in subsidiaries 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.
Determining whether the investments
is subsidiaries is impaired requires an
estimate in the value in use of investments.
The Management carries out impairment
assessment for each investment by
comparing the carrying value of each
investment with the net worth of each
company based on audited financials
and comparing the performance of the
investee companies with projections used
for valuations, in particular those relating
to the cash flows, sales growth rate, pre¬
tax discount rate and growth rates used
and approved business plans.

De-recognition

A financial asset (or, where applicable, a
part of a financial asset or part of a group
of similar financial assets) is primarily
derecognised (i.e. removed from the
Company's balance sheet) when:

• The rights to receive cash flows from
the asset have expired, or

• The Company has transferred its
rights to receive cash flows from the
asset or has assumed an obligation
to pay the received cash flows in full
without material delay to a third party
under a ‘pass-through' arrangement;
and either (a) the Company has
transferred substantially all the risks
and rewards of the asset, or (b) the
Company has neither transferred nor
retained substantially all the risks
and rewards of the asset, but has
transferred control of the asset.

When the Company has transferred
its rights to receive cash flows from
an asset or has entered into a pass¬
through arrangement, it evaluates if
and to what extent it has retained the
risks and rewards of ownership. When
it has neither transferred nor retained
substantially all of the risks and rewards
of the asset, nor transferred control of
the asset, the Company continues to
recognize the transferred asset to the
extent of the Company's continuing
involvement. In that case, the Company
also recognizes an associated liability.
The transferred asset and the associated
liability are measured on a basis that
reflects the rights and obligations that the
Company has retained.

Continuing involvement that takes the form
of a guarantee over the transferred asset
is measured at the lower of the original
carrying amount of the asset and the
maximum amount of consideration that
the company could be required to repay.

Impairment of financial assets

Further disclosures relating to impairment
of financial assets are also provided in the
following notes:

• Disclosure for significant accounting
judgements, estimates and
assumptions - refer note 2(xxiv)

• Trade receivables and contract assets
- refer note 10 and refer note 20.

In accordance with IndAS 109, the Company
applies expected credit loss (ECL) model
for measurement and recognition of
impairment loss on the following financial
assets and credit risk exposure:

a) Financial assets that are debt
instruments, and are measured
at amortized cost e.g., loans, debt
securities, deposits, trade receivables
and bank balance.

The Company follows ‘simplified
approach' for recognition of impairment
loss allowance on trade receivables.
The application of simplified approach
does not require the Company to track
changes in credit risk. Rather, it recognizes
impairment loss allowance based on
lifetime ECLs at each reporting date, right
from its initial recognition.

For recognition of impairment loss on
other financial assets and risk exposure, the
Company determines that whether there
has been a significant increase in the credit
risk since initial recognition. If credit risk
has not increased significantly, 12-month
expected credit loss (ECL) is used to provide
for impairment loss. However, if credit risk
has increased significantly, lifetime ECL
is used. If, in a subsequent period, credit
quality of the instrument improves such
that there is no longer a significant increase
in credit risk since initial recognition, then
the entityreverts to recognizing impairment
loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit
losses resulting from all possible default
events over the expected life of a financial
instrument. The 12-month ECL is a portion
of the lifetime ECL which results from
default events that are possible within 12
months after the reporting date.

ECL is the difference between all
contractual cash flows that are due to the
Company in accordance with the contract
and all the cash flows that the entity
expects to receive (i.e., all cash shortfalls),
discounted at the original EIR.

The Company uses a provision matrix to
determine impairment loss allowance

on portfolio of its trade receivables. The
provision matrix is based on its historically
observed default rates over the expected
life of the trade receivables and is
adjusted for forward-looking estimates.
At every reporting date, the historical
observed default rates are updated
and changes in the forward-looking
estimates are analyzed.

ECL impairment loss allowance (or
reversal) recognized during the year is
recognized as income/ expense in the
statement of profit and loss. This amount
is reflected under the head other expenses
in the statement of profit and loss. For the
financial assets measured as at amortized
cost, ECL is presented as an allowance, i.e.,
as an integral part of the measurement
of those assets in the balance sheet.
The allowance reduces the net carrying
amount. Until the asset meets write-off
criteria, the Company does not reduce
impairment allowance from the gross
carrying amount. For further disclosure-
refer note 36 of the financial statements.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair
value through profit or loss, loans and
borrowings or payables, as appropriate.

All financial liabilities are recognized
initially at fair value and, in the case of
loans and borrowings and payables, net of
directly attributable transaction costs.

The Company's financial liabilities include
borrowings, trade and other payables.

Subsequent measurement

The measurement of financial liabilities
depends on their classification, as
described below:

Financial liabilities at fair value through
profit or loss

Financial liabilities at fair value through
profit or loss include financial liabilities
held for trading and financial liabilities

designated upon initial recognition as at
fair value through profit or loss.

Financial liabilities are classified as held for
trading if they are incurred for the purpose
of repurchasing in the near term. This
category also includes derivative financial
instruments entered into by the Company
that are not designated as hedging
instruments in hedge relationships
as defined by Ind AS 109. Separated
embedded derivatives are also classified as
held for trading unless they are designated
as effective hedging instruments.

Gains or losses on liabilities held for trading
are recognised in the profit or loss.

Financial liabilities designated upon
initial recognition at fair value through
profit or loss are designated as such at
the initial date of recognition, and only if
the criteria in Ind AS 109 are satisfied. For
liabilities designated as FVTPL, fair value
gains/ losses attributable to changes in
own credit risk are recognized in OCI.
These gains/ losses are not subsequently
transferred to P&L. However, the Company
may transfer the cumulative gain or loss
within equity. All other changes in fair
value of such liability are recognised in the
statement of profit and loss. The Company
has not designated any financial liability
as at fair value through profit or loss.

Financial liabilities at amortised cost
(Loans and borrowings)

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

Amortized cost is calculated by taking
into account any discount or premium
on acquisition and fees or costs that
are an integral part of the EIR. The EIR
amortization is included as finance costs
in the statement of profit and loss.

This category generally applies to borrowings.

De-recognition

A financial liability is de-recognized
when the obligation under the liability
is discharged or cancelled or expires.
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 derecognition of the original liability
and the recognition of a new liability.
The difference in the respective carrying
amounts is recognized in the statement
of profit and loss.

Reclassification of financial assets

The Company determines classification
of financial assets and liabilities on initial
recognition. After initial recognition, no
reclassification is made for financial assets
which are equity instruments and financial
liabilities. For financial assets which
are debt instruments, a reclassification
is made only if there is a change in
the business model for managing
those assets. Changes to the business
model are expected to be infrequent.
The Company's senior management
determines change in the business model
as a result of external or internal changes
which are significant to the Company's
operations. Such changes are evident to
external parties. A change in the business
model occurs when the Company either
begins or ceases to perform an activity
that is significant to its operations. If the
Company reclassifies financial assets, it
applies the reclassification prospectively
from the reclassification date which is
the first day of the immediately next
reporting period following the change in
business model. The Company does not
restate any previously recognised gains,
losses (including impairment gains or
losses) or interest.

Offsetting of financial instruments

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.

x) 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:

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

• 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, maximizing the
use of relevant observable inputs and
minimizing the use ofunobservable inputs.

All assets and liabilities for which fair value
is measured or disclosed in the financial
statements are categorized 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
categorization (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 assets and liabilities that are

recognised 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.

External valuers are involved for valuation
of significant assets, such as properties
and unquoted financial assets, and
significant liabilities, such as contingent
consideration. Involvement of external
valuers is decided upon annually by the
Valuation Committee after discussion
with and approval by the Company's
Audit Committee. Selection criteria
include market knowledge, reputation,
independence and whether professional
standards are maintained. Valuers are
normally rotated every three years. The
Valuation Committee decides, after
discussions with the Company's external
valuers, which valuation techniques and
inputs to use for each case.

At each reporting date, the management
analyses the movements in the values of
assets and liabilities which are required
to be re-measured or re-assessed as per
the Company's accounting policies. For
this analysis, the management or its
expert verifies the major inputs applied
in the latest valuation by agreeing the
information in the valuation computation
to contracts and other relevant documents.

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

This note summarises accounting policy
for fair value. Other fair value related
disclosures are given in the relevant notes.

• Quantitative disclosures of fair value
measurement hierarchy (refer note 35)

• Investment in unquoted equity
shares (refer note 5)

• Financial instruments (including
those carried at amortised cost)
(refer note 34)

• Disclosure for significant accounting
judgments, estimates and
assumptions (refer note 2(xxiv)

xi) Revenue from contracts with customers

Revenue is recognized to the extent that it
is probable that the economic benefit will
flow to the Company and the revenue can
be reliably measured, regardless of when
the payment is being made. Revenue
is measured at the transaction price
received or receivable, taking into account
contractually defined terms of payment
and excluding taxes or duties collected on
behalf of the government.

The specific recognition criteria
discussed below must also be met before
revenue is recognized:

Consumer platform

Revenue from rendering of advertisement
services is recognized on accrual basis as
and when services are rendered based on
the terms of the contract including right
to use the platform and right to access the
platform as and when the obligation as
per the contract are fulfilled. The Company
collects taxes on behalf of the government
and, therefore, it is not an economic
benefit flowing to the Company. Hence,
it is excluded from revenue. In respect
of consumer platform, the revenue is
recognised as and when advertisements
are delivered by the Company. The
performance obligation is satisfied at a
point in time and payment is generally
due within 30 to 90 days of completion of
services and acceptance of the customer.
In some contracts, short-term advances
are required before the advertisement
services are provided. As the duration of
the contracts for consumer is less than
one year, the Company has opted for
practical expedient and decided not to
disclose the amount of the remaining
performance obligations.

Other Operating Revenue

Other operating revenue is derived from
the allocation of salary and operational
cost charged to the associated entity for
the work performed. The transaction is at
arm's length which is on usual commercial
terms. The amount charged includes cost
plus margin based on the transfer pricing
study carried at the year end. The revenue
is recognized on accrual basis.

Contract balances

• Contract assets - A contract asset is
the right to consideration in exchange
for goods or services transferred to the
customer. If the Company performs
by transferring goods or services to a
customer before the customer pays
consideration or before payment is
due, a contract asset is recognised
for the earned consideration that is
conditional. Contract assets are subject

to impairment assessment. Refer to
accounting policies on impairment of
financial assets in section x) Financial
instruments - initial recognition and
subsequent measurement.

• Trade receivables - A receivable
represents the Company's right
to an amount of consideration
that is unconditional (i.e., only the
passage of time is required before
payment of the consideration is
due). Refer to accounting policies of
financial assets in clause x) Financial
instruments - initial recognition and
subsequent measurement.

• Contract liabilities- A contract liability
is the obligation to transfer goods or
services to a customer for which the
Company has received consideration
(or an amount of consideration
is due) from the customer. If a
customer pays consideration before
the Company transfers goods or
services to the customer, a contract
liability is recognised when the
payment is made, or the payment is
due (whichever is earlier). Contract
liabilities are recognised as revenue
when the Company performs
under the contract.

Interest

For all debt instruments measured
at amortized cost, interest income is
recorded using the effective interest rate
(EIR). EIR is the rate that exactly discounts
the estimated future cash payments
or receipts over the expected life of the
financial instrument or a shorter period,
where appropriate, to the gross carrying
amount of the financial asset or to the
amortized cost of a financial liability. When
calculating the effective interest rate, the
Company estimates the expected cash
flows by considering all the contractual
terms of the financial instrument but
does not consider the expected credit
losses. Interest income is included in other
income in the statement of profit and loss.

xii) Foreign currencies

Functional and presentational currency

The Company's financial statements are
presented in Indian Rupees (INR) which
is also the Company's functional currency.
Functional currency is the currency of
the primary economic environment in
which an entity operates and is normally
the currency in which the entity primarily
generates and expends cash.

Transactions and balances

Transactions in foreign currencies are
initially recorded at their respective
functional currency spot rates at the
date the transaction first qualifies for
recognition. However, for practical
reasons, the Company uses average rate if
the average approximates the actual rate
at the date of the transaction.

Monetary assets and liabilities
denominated in foreign currencies are
translated at the functional currency spot
rates of exchange at the reporting date.

Exchange differences arising on
settlement or translation of monetary
items are recognized in statement of
profit and loss.

Non-monetary items that are measured in
terms of historical cost in a foreign currency
are translated using the exchange rates at
the dates of the initial transactions. Non¬
monetary items measured at fair value
in a foreign currency are translated using
the exchange rates at the date when the
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 the item (i.e.,
translation differences on items whose fair
value gain or loss is recognised in OCI or
profit or loss are also recognised in OCI or
profit or loss, respectively).

In determining the spot exchange rate
to use on initial recognition of the related
asset, expense or income (or part of it)
on the derecognition of a non-monetary
asset or non-monetary liability relating
to advance consideration, the date of
the transaction is the date on which the
Company initially recognises the non¬
monetary asset or non-monetary liability
arising from the advance consideration.
If there are multiple payments or receipts
in advance, the Company determines
the transaction date for each payment or
receipt of advance consideration.

xiii) Retirement and other employee benefits

Retirement benefit in the form of provident
fund is a defined contribution scheme. The
Company has no obligation, other than the
contribution payable to the provident fund.
The Company recognizes contribution
payable to the provident fund scheme as
an expenditure in the statement of profit
and loss, when an employee renders
the related service. If the contribution
payable to the scheme for service received
before the balance sheet date exceeds
the contribution already paid, the deficit
payable to the scheme is recognized as a
liability after deducting the contribution
already paid. If the contribution already
paid exceeds the contribution due for
services received before the balance sheet
date, then excess is recognized as an asset
to the extent that the pre-payment will
lead to, for example, a reduction in future
payment or a cash refund.

The Company operates an unfunded
defined benefit gratuity plan for its
employees. The cost of providing benefits
under this plan is determined on the basis
of actuarial valuation at each year-end,
using the projected unit credit method
and charged to statement of profit and
loss. Remeasurements, comprising of
actuarial gains and losses, are recognized
immediately in the balance sheet with a
corresponding debit or credit to retained
earnings through OCI in the period in
which they occur. Remeasurements are
not reclassified to Statement of profit and
loss in subsequent periods.

Net interest is calculated by applying the
discount rate to the net defined benefit
liability or asset. The Company recognizes
the following changes in the net defined
benefit obligation as an expense in the
statement of profit and loss:

• Service costs comprising current
service costs, past-service costs, gains
and losses on curtailments and non¬
routine settlements; and

• Net interest expense or income

Accumulated leave, which is expected to
be utilized within the next 12 months, is
treated as short-term employee benefit.
The Company measures the expected cost
of such absences as the additional amount
that it expects to pay as a result of the
unused entitlement that has accumulated
at the reporting date.

The Company treats accumulated leave
expected to be carried forward beyond
twelve months, as long-term employee
benefit for measurement purposes.
Such long-term compensated absences
are provided for based on the actuarial
valuation using the projected unit
credit method at the year-end. Actuarial
gains/losses are immediately taken to
the statement of profit and loss and
are not deferred.

xiv) Taxes

Current income tax

Current income-tax assets and liabilities is
measured at the amount expected to be
recovered from or paid to the tax authorities
in accordance with the Income-tax Act, 1961
enacted in India. The tax rates and tax laws
used to compute the amount are those that
are enacted or substantively enacted, at the
reporting date.

Current income tax relating to items
recognized outside statement of
profit and loss is recognized outside
statement of profit and loss (either
in other comprehensive income or
in equity). Management periodically
evaluates positions taken in the tax
returns with respect to situations in which
applicable tax regulations are subject to
interpretation and establishes provisions
where appropriate.

Deferred tax

Deferred tax is provided using the liability
method on temporary differences
between the tax bases of assets and
liabilities and their carrying amounts
for financial reporting purposes at the
reporting date.

Deferred tax liabilities are recognized for
all taxable temporary differences, except:

• When the deferred tax liability arises
from the initial recognition of goodwill
or an asset or liability in a transaction
that is not a business combination
and, at the time of the transaction,
affects neither the accounting profit
nor taxable profit or loss.

Deferred tax assets are recognized for
all deductible temporary differences,
the carry forward of unused tax credits
and any unused tax losses. Deferred tax
assets are recognized to the extent that
it is probable that taxable profit will be
available against which the deductible
temporary differences, and the carry
forward of unused tax credits and unused
tax losses can be utilized, except:

• When the deferred tax asset relating to
the deductible temporary difference
arises from the initial recognition of
an asset or liability in a transaction
that is not a business combination
and, at the time of the transaction,
affects neither the accounting profit
nor taxable profit or loss

• In respect of taxable temporary
differences associated with
investments in subsidiaries, associates
and interests in joint ventures,
when the timing of the reversal of
the temporary differences can be
controlled and it is probable that the
temporary differences will not reverse
in the foreseeable future

Deferred tax assets are recognised for
all deductible temporary differences,
the carry forward of unused tax credits
and any unused tax losses. Deferred tax
assets are recognised to the extent that

it is probable that taxable profit will be
available against which the deductible
temporary differences, and the carry
forward of unused tax credits and unused
tax losses can be utilised.

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

The unrecognized deferred tax assets
are re-assessed at each reporting date
and are recognized to the extent that it
has become probable that future taxable
profits will allow the deferred tax asset
to be recovered.

Deferred tax assets and liabilities are
measured at the tax rates that are
expected to apply in the year when the
asset is realized or the liability is settled,
based on tax rates and tax laws that have
been enacted or substantively enacted at
the reporting date.

Deferred tax relating to items recognized
outside statement of profit and loss is
recognized outside statement of profit
and loss (either in other comprehensive
income or in equity). Deferred tax items
are recognized in correlation to the
underlying transaction either in OCI or
directly in equity.

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

xv) Non-current assets held for sale and
discontinued operations

The Company classifies non-current
assets and disposal groups as held for sale
if their carrying amounts will be recovered
principally through a sale rather than
through continuing use.

Non-current assets and disposal groups
classified as held for sale are measured
at the lower of their carrying amount

and fair value less costs to sell. Costs to
sell are the incremental costs directly
attributable to the disposal of an asset
(disposal group), excluding finance costs
and income tax expense.

The criteria for held for sale classification
is regarded as met only when the sale is
highly probable, and the asset or disposal
group is available for immediate sale in
its present condition. Actions required
to complete the sale/ distribution should
indicate that it is unlikely that significant
changes to the sale will be made or that
the decision to sell will be withdrawn.
Management must be committed to the
sale and the sale expected within one year
from the date of classification.

For these purposes, sale transactions
include exchanges of non-current assets
for other non-current assets when the
exchange has commercial substance.
The criteria for held for sale classification
is regarded met only when the assets or
disposal group is available for immediate
sale in its present condition, subject only
to terms that are usual and customary for
sales of such assets (or disposal groups), its
sale is highly probable; and it will genuinely
be sold, not abandoned. The Company
treats sale of the asset or disposal group
to be highly probable when:

• The appropriate level of management
is committed to a plan to sell the asset
(or disposal group),

• An active programme to locate a
buyer and complete the plan has
been initiated (if applicable),

• The asset (or disposal group) is being
actively marketed for sale at a price
that is reasonable in relation to its
current fair value,

• The sale is expected to qualify for
recognition as a completed sale
within one year from the date of
classification, and

• Actions required to complete the
plan indicate that it is unlikely
that significant changes to the

plan will be made or that the plan
will be withdrawn.

Property, plant and equipment and
intangible are not depreciated, or
amortised assets once classified
as held for sale.

Assets and liabilities classified as held for
sale are presented separately from other
items in the balance sheet.

Discontinued operations are excluded from
the results of continuing operations and are
presented as a single amount as profit or
loss after tax from discontinued operations
in the statement of profit and loss.

All notes to the standalone financial
statements mainly include amounts
for continuing operations, unless
otherwise mentioned.

xvi) Cash and cash equivalent

Cash and cash equivalent in the balance
sheet comprise cash at banks and on
hand and short-term deposits with an
original maturity of three months or less,
which are subject to an insignificant risk
of changes in value.

For the purpose of the statement of cash
flows, cash and cash equivalents consist of
cash and short-term deposits, as defined
above, net of outstanding bank overdrafts
as they are considered an integral part of
the Company's cash management.