II Material Accounting Policies

i. Statement of Compliance

The financial statements of the Company have been prepared in accordance with Indian
Accounting standards (Ind AS) notified under the Companies (Indian Accounting Standards)
Rules, 2015 and Companies Accounting Standard (Amendment Rules 2016).

ii. Basis of preparation and presentation

The financial statements have been prepared on the historical cost basis except for certain
financial instruments (Equity Investment) that are measured at fair values at the end of each
reporting period, as explained in the accounting policies below.

Historical cost is generally based on fair value of the consideration given in exchange for
goods and services.

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, regardless of
whether that price is directly observable or estimated using another valuation technique.

In estimating the fair value of an asset or a liability, the company takes into account the
characteristics of the asset or liability if market participants would take those characteristics
in to account when pricing the asset or liability at the measurement date. Fair value for
measurement and / or disclosure purposes in these financial statements is determined on
such basis, except for measurements that have some similarities to fair value but are not fair
value, such as net realisable value in Ind AS 2.

iii. Significant accounting judgements, estimates and assumptions

The preparation of the Company's financial statements requires management to make
judgements, estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, The management believes that the estimates used in
preparation of financial statements are prudent and reasonable.

iv. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current / non¬
current classification.

An asset is treated as current when it is:

(i) Expected to be realised or intended to be sold or consumed in normal operating cycle.

(ii) Held primarily for the purpose of trading.

(iii) Expected to be realised within twelve months after the reporting period, or

(iv) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for
at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

(i) It is expected to be settled in normal operating cycle

(ii) It is held primarily for the purpose of trading

(iii) It is due to be settled within twelve months after the reporting period, or

(iv) There is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting period

The company classifies all other liabilities as non-current.

v. Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded by the Company's entities at their
respective functional currency spot rates at the date the transaction first qualifies for
recognition.

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 recognised
in profit or loss.

INR is the functional currency and also the reporting currency.

vi. Fair value measurement

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:

(i) In the principal market for the asset or liability, or

(ii) In the absence of a principal market, in the most advantageous market for the asset or liability

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 of unobservable inputs.

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.

vii. Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits 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 fair value of the consideration received or
receivable, taking into account contractually defined terms of payment and excluding taxes
or duties collected on behalf of the government. The Company recognizes revenue from
trading in equity shares classified as Financial Assets at Fair Value Through Profit or Loss
(FVTPL) in accordance with Ind AS 109 - Financial Instruments. These financial instruments
are initially recognized at fair value and subsequently measured at fair value at each
reporting date. Changes in the fair value of such financial assets, including both realized and
unrealized gains or losses, are recognized in the Statement of Profit and Loss under “Net
Gain/(Loss) on Fair Value Changes”.

viii. Taxes

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute
the amount are those that are enacted or substantively enacted, at the reporting date in the
countries where the company operates and generates taxable income.

Current income tax relating to items recognised outside profit or loss is recognised outside
profit or loss (either in other comprehensive income or in equity). Current tax items are
recognised in correlation to the underlying transaction either in Other Comprehensive
Income (OCI) or directly 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 recognised for all taxable temporary differences, except:

(i) 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.

(ii) 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 credit and unused tax losses can
be utilized except:

(i) 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.

(ii) In respect of deductible temporary differences associated with investments in subsidiaries,
associates and interests in joint ventures, deferred tax assets are recognised only to the
extent that it is probable that the temporary differences will reverse in the foreseeable future
and taxable profit will be available against which the temporary differences 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 utilised. Unrecognised deferred tax assets are re¬
assessed at each reporting date and are recognised to the extent that it has become
probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or
loss (either in other comprehensive income or in equity). Deferred tax items are recognised 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.

ix. Property, plant and equipment

Fixed assets are stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any. The cost comprises purchase price, non refundable taxes and
directly attributable cost of bringing the asset to its present location and condition for the
intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

The Company has elected to regard the carrying values of freehold buildings as deemed cost
since they were broadly comparable to fair value. Depreciation on tangible assets has been
provided on the straight line method as per useful life prescribed in schedule -II to the
Companies Act, 2013.

Subsequent cost

Subsequent costs incurred for replacement of a major component of an asset should be
included in the asset's carrying cost or recognised as a separate asset, as appropriate. The
carrying value of the replaced component should be charged to Profit and Loss account
when replaced.

De-recognition

An item of property, plant and equipment and any significant part initially recognised is
derecognised upon disposal or when no future economic benefits are expected from its use
or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the
difference between the net disposal proceeds and the carrying amount of the asset) is
included in the income statement when the asset is derecognised.