l.Basis of preparation
Statement of compliance
These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS), under the historical cost convention on the accrual
basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (“the Act") (to the extent
notified). TheInd AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and
relevant amendment rules issued thereafter.
(i) 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.Details of Companies Accounting Policies are included in Note 3
(ii) Functional and presentation currency
These financial statements are presented in Indian Rupees (INR), which is also the Company's functional currency. All amounts have been rounded-off
to the Rupees, unless otherwise indicated.
(iii) Basis of Measurement
The financial statements have been prepared on a historical cost basis, except for the certain Financial Assets and Liabiliti es which are measured at Fair
Value.
(iv) Use of estimates and judgments
The preparation of financial statements in conformity with Ind AS requires management to make estimates, judgments, and assumptions that affect
the application of accounting policies and the reported amounts of assets and liabilities (including contingent liabilities) and disclosures as of the
date of financial statements and the reported amounts of revenue and expenses for the reporting period. Actual results could differ from these
estimates. Accounting estimatesand underlying assumptions are reviewed on an on going basis and could change from period to period. Appropriate
changes in estimates are recognized in the period in which the Company becomes aware of the changes in circumstances surrounding the estimates.
Any revisions to accounting estimates are recognized prospectively in the period in which the estimate is revised and future periods. The estimates
and judgments that have significant impact on carrying amount of assets and liabilities at each balance sheet date are discussed at note 3.
1. Determination of the estimated useful lives of tangible assets
Useful lives of property, plant and equipment are taken as prescribed in Schedule II of the Act.
II. Recognition of deferred tax assets / liabilities
Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and
liabilities and their respective tax bases. Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available
against which the deductible temporary differences could be utilized. Further details are disclosed in note 32.
III. Recognition and measurement of provision and contingencies
The recognition and measurement of other provisions are based on the assessment of the probability of an outflow of resources, and on past experience
and circumstances known at the reporting date. The actual outflow of resources at a future date may therefore, vary from the amount included in other
provisions.
IV. Impairment of financial assets
The Company recognizes loss allowances for expected credit losses on its financial assets measured at amortized cost. At each reporting date, the Company
assesses whether financial assets carried at amortized cost are credit impaired.A financial asset is 'credit- impaired' when one or more events that have a
detrimental impact on the estimated future cash flows of the financial asset haveoccurred.
2. Measurement of fair values
The Company's accounting policies and disclosures require the measurement of fair values for, both financial and non-financial assets and liabilities.
When measuring the fair value of a financial asset or a financial liability, the Company uses observable market data as far as possible. Fair values are
categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived
from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is
categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
3. Material accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all
the years presented, unless otherwise stated.
Revenue Recognition
Revenue is recognized when it is probable that the economic benefits will flow to the Company and it can be reliably measured. Revenue is measured at the
fair value of the consideration received/receivable net of rebate and taxes. The Company applies the revenue recognition criteria to each nature of revenue
transaction as set-out below.
(i) Fees and commission income
Fees for subscription based services are received periodically but are recognised as earned on a pro-rata basis over the term of the contract. Commissions
andfees recognised as aforesaid are exclusive of goods and service tax.
(ii) Other income
Interest income is recognized on accrual basis.
Dividend income is recognised when the right to receive the dividend is established.
Property, plant and equipment
Property, plant and equipment are stated at cost of acquisition less accumulated depreciation. Cost includes expenditure that is directly attributable
to the acquisition and installation of the assets.Items of Property, plant and equipment that have been retired from active use and are held for
disposal are stated at the lower of their net book value or net realisable value and are shown separately in the financial statements.Gains or losses
arising from disposal or retirement of tangible Property, plant and equipment are measured as the difference between the net disposal proceeds
and the carrying amount of the asset and are recognised net, within "Other Income" or "Other Expenses", as the case maybe, in the Statement of
Profit and Loss in the year of disposal or retirement.Subsequent costs are included in the asset's carryin g amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be
measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and
maintenance are charged to profit or loss during the reporting period in which they are incurred.
1. Depreciation methods, estimated useful lives and residual value
Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, overtheir estimated useful life prescribed
underSchedule II to the Companies Act, 2013. The Company provides pro-rata depreciation from the date of installation till date the assets are sold or
disposed.
2. Derecognition:
The carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future economic benefits are expected from its
use or disposal. Gains and losses on disposals are determined by comparing proceeds with carrying amount and are recognized in the statement of profit
and losswhen the asset is derecognized.
Intangible assets
3. Measurement at recognition:
Intangible assets are recognized where it is probable that the future economic benefit attributable to the assets will flow to the Company and its cost
can be reliably measured. Intangible assets are stated at cost of acquisition less accumulated amortization and impairment, if any.Cost of an intangible asset
includes purchase price, non-refundable taxes and duties and any other directly attributable expenditure on making the asset readyfor its intended use and
net of any trade discounts and rebates.Subsequent expenditure on an intangible asset is charged to the Statement of Profit and Loss as an expense unless it
is probable that such expenditure will enable the intangible asset increase the future benefits from the existing asset beyond its previously assessed
standard of performance and such expenditure can be measured and attributed to the intangible asset reliably, in which case, such expenditure is
capitalised
4.. Amortisation methods, estimated useful lives and residual value
Intangible assets are amortised on a straightline basis over their estimated useful lives. The amortisation period and the amortisation method are
reviewed ateach reporting date.
5.Derecognition:
The carrying amount of an intangible asset is derecognized on disposal or when no future economic benefits are expected from its use or disposal. Gains
andlosses on disposals are determined by comparing proceeds with carrying amount and are recognized in the statement of profit a nd loss when the asset
is derecognized.
3.Financial Instruments :
A financial instrument is any contract that gives rise to a financial asset of one entity and a fi nancial liability or equity instrument of another entity. Financial
instruments also include derivative contracts such as foreign currency forward contracts.Financial instruments also covers contracts to buy or sell a non¬
financial item that can be settled net in cash or another financial instrument, or by exchanging financial instruments, as if the contracts were financial
instruments, with the exception of contracts that were entered into and continue to be held for the purpose of the receipt or delivery of a non-financial item
in accordance with the entity's expected purchase, sale or usage requirements.Trade receivables, Loans and deposits are initially recognised when they are
originated. All other financial assets and liabilities are initially recognised when the Company becomes a party to the contractual provisions of the
instrument. A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss
('FVTPL'),transaction costs that are directly attributable to its acquisition or issued.
3.1. Financial assets
(i)Initial recognition and measurement
On initial recognition, a financial asset is classified as measured at :
. Amortised cost;
. Fair value through other comprehensive income ('FVOCI')
. Fair value through profit and loss ('FVTPL');
1.Financial assets measured at amortized cost
A financial asset that meets the following two conditions is measured at amortized cost (net of any written down for impairment) unless the asset
is designated at FVTPL under the fair value option. Business model test: The objective of the Company's business model is to hold the financial
asset to collect the contractual cash flows (rather than to sell the instrument prior to its contractual maturity to realize its fair value changes).
Cash flow characteristics test: The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding
2.Financial assets measured at Fair value
A financial asset which is not classified at amortized cost is subsequently measured at fair valued. Where assets are measure d at fair value,
gains and losses are either recognized entirely in the statement of profit and loss (i.e. fair value through profit or loss), or recognized in Other
Comprehensive Income (i.e. fair value through other comprehensive income).
The assets classified in the aforementioned categories are subsequently measured as follows:
a) Financial assets at Fair Value Through Profit or Loss (FVTPL): These assets are subsequently measured at fair value. Net gains and losses, including any
interest or dividend income, are recognized in the statement of profit and loss. Financial assets that are held for trading and whose performance is
evaluated on a fair value basis are measured at FVTPL.
b) Financial assets at Fair Value Through Other Comprehensive Income (FVOCI): These assets are subsequently measured at fair value. Interest income
under the effective interest method, dividends (unless the dividend clearly represents a recovery of part of the cost of the investment), foreign exchange
gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses
accumulated in OCI are reclassified to profit or loss.
(ii)Derecognition
A financial asset is derecognised only when :
The Company has transferred the rights to receive cash flows from the financial asset or 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, the Company evaluates whether it has transferred substantially all risks and rewards of ownership
of the financial asset. In such cases, the financial asset is derecognised. Where the entity has not transferred substantially all risks and rewards
of ownership of the financial asset, the financial asset is not derecognised.
4.Financial Liabilities
(i) Initial recognition and measurement
Financial liabilities are classified at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held for trading, or
it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and
losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost
using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on
derecognition is also recognised in Statement of Profit or loss.
(ii) Derecognition
A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled or expires.
(i) .Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company currently
has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability
simultaneously.
(ii) .Employee benefits
Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss for the year in
which the related services are rendered. The Company recognises the costs of bonus payments when it has a present obligation to make such
payments as a result of past events and a reliable estimate of the obligation can be made. The Company does not have any post employment
benefit obligation.
5.Income Tax
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 for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax
losses. Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive
income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.
1.Current Tax
Current tax is measured at the amount of tax expected to be payable on the taxable income for the year as determined in accordance with the provisions of
the Income Tax Act, 1961. Current Tax assets and Current Tax liabilities are off set when there is a legally enforceable right to set off the recognized amounts
and there is an intention to settle the asset and the liability on a net basis.
6.Deferred Tax
Deferred 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 statements. Deferred 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.Deferred
Tax assets are recognized for all deductible temporary differences and unused Tax losses only if it is probable that future taxable amounts will be available to
utilize those temporary differences and losses.Deferred Tax liabilities are recognized for temporary differences between the carrying amount and Tax bases
of investments 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.
7.Current Tax Asset and Current Tax Liabilities
Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to
settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off
assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the
same governing taxation laws.
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