2. MATERIAL ACCOUNTING POLICIES2.1 Basis of preparation and presentation2.1.1 Statement of Compliance
The standalone financial statements as at and for the year ended March 31, 2026 have been prepared 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).
2.1.2 Basis of measurement
The standalone financial statements have been prepared on a historical cost convention and on an accrual basis, except for certain items
measured at fair value as required by relevant Ind AS:
i) Financial assets and financial liabilities measured at fair value (refer to accounting policy on financial Instruments);
ii) Defined benefits and other long-term employee benefits.
2.1.3 Functional and presentation currency
The standalone financial statements of the Company are presented in Indian rupees, the functional currency of the Company. All financial
information is rounded to the nearest lakh, except share and per share data, unless otherwise stated.
2.1.4 Use of estimates and judgment
The preparation of standalone financial statements in conformity with the recognition and measurement principles of Ind AS requires management
to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
income, expenses, disclosure of contingent assets and contingent liabilities. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed periodically. Impact of revisions to accounting estimates is recognised in the period in which
the estimates are revised and in any future periods affected. In particular, significant areas of estimation, uncertainty, and critical judgments that
have the most significant effect are included in the following notes:
(i) Defined employee benefit assets/liabilities determined based on the present value of future obligations using actuarial assumptions.
(ii) Depreciation and amortization expenses: The charge in respect of depreciation is computed based on estimate of an asset’s expected
useful life and the expected residual value at the end of its life. The useful life and residual values of the Company’s assets at the end of its
useful life are estimated by management at the time the asset is acquired and reviewed periodically, including at each financial year end.
The useful life is estimated based on historical experience with similar assets as well as anticipation of future events, which may impact
their life, such as changes in technology.
(iii) impairment of trade receivables: The Company estimates the probability of collection of accounts receivable by analyzing historical payment
patterns, customer status, customer creditworthiness and current economic trends. If the financial condition of a customer deteriorates,
additional allowances are made.
2. MATERIAL ACCOUNTING POLICIES (Contd.)..
(iv) Fair value measurement of financial instruments: Fair value of an unquoted equity instruments is computed using discounted cash flow
model or recent transaction in the instrument between two independent parties. The valuation requires management to make certain
assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility, the probabilities of the various
estimates within the range can be reasonably assessed and are used in management’s estimate of fair value for these unquoted equity
investments (refer note 32).
2.1.5 Dividend Distribution
The Company recognises a liability to pay dividend when the distribution is authorised, and the distribution is no longer at the discretion of the
Company. As per the Indian corporate laws, a distribution is authorised when it is approved by the shareholders. A corresponding amount is
recognised directly in equity.
2.2 Summary of Material Accounting Policies2.2.1 Financial instruments
Financial assetsInitial Recognition and measurement
Financial assets are recognized initially at fair value plus transaction costs attributable to the acquisition of the financial asset, except for those
measured at fair value through profit or loss (FVTPL). If the fair value of a financial asset at initial recognition differs from the transaction price, the
difference between the fair value and the transaction price is recognised as a gain or loss in the Standalone Statement of Profit and Loss, if the
fair value is determined through a quoted market price (i.e. level 1 fair value) or valuation technique that uses observable market data (i.e. level 2
fair value). For other case, the difference is deferred and recognised as a gain or loss in the Standalone Statement of Profit and Loss only to the
extent that such gain or loss arises due to a change in the factor that market participants take into account when pricing the financial asset.
Trade receivables without a significant financing component are measured at transaction price under Ind AS 115 "Revenue from Contracts with
Customers”.
Subsequent Measurement
For subsequent measurement, the Company classifies a financial asset in accordance with the below criteria:
i. The Company’s business model for managing the financial asset and
ii. The contractual cash flow characteristics of the financial asset:
Based on these criteria, the Company classifies its financial assets into the following categories:
(a) Financial assets (debt instrument) at amortized cost: This category applies to investment in interest bearing debt instruments, trade
receivables, security deposits, cash and cash equivalents, employee and other advances and eligible current and non-current assets.
Financial assets in the nature of debt instruments are subsequently measured at amortised cost using the effective interest method. The
corresponding effect of the amortisation under the effective interest method is recognised as interest income over the relevant period of the
financial asset. The amortised cost of a financial asset is adjusted for loss allowance, if any.
(b) Equity instruments in subsidiaries and associates: Measured at cost less provision for impairment loss, if any.
(c) Equity instruments: The Company makes the election for classification of equity instruments through FVTPL or FVOCI on an instrument-
by-instrument basis. Fair value changes on the instrument and dividend are recognised in the Consolidated Statement of Profit and Loss.
(d) Financial assets measured at fair value through profit or loss (FVTPL): This is a residual category applied to all other investments of
the Company. Such financial assets are subsequently measured at fair value at each reporting date and changes in fair value are recognised
in the Standalone Statement of Profit and Loss.
2. MATERIAL ACCOUNTING POLICIES (Contd.)..Financial Liabilities
Initial Recognition and Measurement
All financial liabilities are initially recognized at fair value minus transaction costs that are attributable to the acquisition of the financial liability,
except for those measured at fair value through profit or loss (FVTPL). This applies to deposits received, trade and other payables.
Subsequent Measurement
All financial liabilities are subsequently measured at amortized cost using the effective interest method, except liabilities represented by contingent
consideration.
Fair value of financial instruments
In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market
conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available
quoted market prices and dealer quotes. All methods of assessing fair value result in a general approximation of value, and such value may never
actually be realized.
2.2.2 Earmarked Funds
Earmarked Funds represent deposits received from members and corporates for specific purposes and income accrued thereon. These amounts
are invested and the same are earmarked in the Balance Sheet. Investment income earned and gain/(loss) in fair value on financial instruments,
if any is credited to respective earmarked liabilities and not routed through the Standalone Statement of Profit and Loss.
2.2.3 Expected Credit Loss
Financial assets carried at amortised cost: The Company applies the expected credit loss (ECL) model for measurement and recognition
of impairment loss. For trade receivable, the simplified approach is used, recognizing lifetime ECLs at each reporting date, right from its initial
recognition. The company applies following rate matrix for ECL provisioning:
For other financial assets and risk exposure 12-month ECL is used to provide for impairment loss unless there is a significant increase in the credit
risk since initial recognition, in which case lifetime ECL is used. If credit quality of the instrument improves in subsequent period such that there
is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on
12-month ECL.
Lifetime ECLs are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. Financial
assets measured at amortised cost, contractual revenue receivable: 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.
Impairment of equity investments measured at cost: Investments in subsidiaries are measured at cost and tested for impairment
at the end of each reporting period. Any impairment loss is recognized in the Standalone statement of profit and loss, if the amount of
impairment loss decreases subsequently then the previously recognized impairment loss is reversed in the Standalone statement of profit
and loss.
2.2.4 Investment income
Investment income consists of interest income on funds invested, dividend income and gains on the disposal of financial assets measured at FVTPL
and amortized cost.
Interest income on financial instruments is recognized as it accrues in the Standalone Statement of Profit and Loss, using the effective interest
rate (EIR) method and interest income on deposits with banks is recognized on a time proportion accrual basis taking into the account the amount
outstanding and the rate applicable.
Dividend income is recognized in the Profit or Loss on the date that the Company’s right to receive payment is established.
2.2.5 Property, Plant and Equipment
(a) Recognition and measurement: Property, plant and equipment are measured at cost less accumulated depreciation and impairment
losses, if any. The cost comprises the purchase price and any cost attributable to bringing the assets to its working condition for its intended
use.
Amounts paid in advance towards the acquisition of property, plant and equipment remaining outstanding at reporting date and the cost of
property, plant and equipment not ready for intended use before such date, are disclosed under capital work-in-progress.
(b) Depreciation: The Company depreciates property, plant, and equipment over the estimated useful life on a written down value method
from the date the assets are ready for intended use. The estimated useful life of property, plant and equipment are as follows:
*Company has carried out an assessment to determine the remaining useful life of some of its properties including Investment Property.
Refer note 3 of the standalone financial statements.
Freehold land is not depreciated.
Depreciation methods, useful life and residual values are reviewed at each reporting date, with the effect of any changes in estimate
accounted for on a prospective basis.
When parts of an item of property, plant and equipment have different useful life, they are accounted for as separate items (major
components) of property, plant and equipment. Subsequent expenditure relating to property, plant and equipment is capitalized only when it
is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably.
(c) Derecognition: The cost and related accumulated depreciation are eliminated from the standalone financial statements upon disposal
or when no future economic benefits are expected and gain or loss from such disposition of the asset are recognized in the standalone
statement of profit and loss. The date of disposal is the date when recipient obtains control of the item in accordance with the requirements
for determining when a performance obligation is satisfied as per Ind AS 115.
2.2.6 Investment properties
Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are
measured at cost model in accordance with the requirements of Ind AS 16.
Investment property is derecognised upon disposal or when no future economic benefits are expected from the property. Any gain or loss arising
on derecognition of the investment property is included in the Standalone statement of profit and loss in the period in which the investment
property is derecognised.
2.2.7 Intangible assets
The intangible assets are assessed as having either finite or indefinite useful lives.
Intangible assets with finite useful life, assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized
over their respective estimated useful lives on a written down value method, from the date that they are available for use. The estimated useful
life of an identifiable intangible asset is determined based on a number of factors including the effects of obsolescence, demand, competition
and other economic factors (such as the stability of the industry and known technological advances) and the level of maintenance expenditures
required to obtain the expected future cash flows from the asset.
Amortisation methods, useful life and residual values are reviewed at reporting date, with the effect of any changes in estimate accounted for on
a prospective basis.
2.2.8 Employee benefits
a) Gratuity: In accordance with the Code of Social Security, 2020, the Company provides for a lump sum payment to eligible employees
at retirement or termination of employment based on the last drawn salary and years of employment with the Company. The Company’s
obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation using the projected
unit credit method.
Actuarial gains or losses are recognised in other comprehensive income. Further, the profit or loss does not include an expected return on
plan assets. Instead, net interest recognised in the statement of profit or loss is calculated by applying the discount rate used to measure the
defined benefit obligation to the net defined benefit liability or asset. The actual return on the plan assets above or below the discount rate is
recognised as part of the re-measurement of net defined liability or asset through other comprehensive income.
Remeasurements comprising actuarial gains or losses and return on plan assets (excluding amounts included in net interest on the net
defined benefit liability) are not reclassified to the statement of profit and loss in subsequent periods.
b) Compensated absences: The employees of the Company are entitled to compensated absences. The employees can carry forward
a portion of the unutilized accumulated compensated absences and utilise them in future periods, and the Company provides cash for
remaining unutilized leaves. The Company records an obligation for compensated absences in the period in which the employee renders the
services that increase this entitlement. The Company measures the expected cost of compensated absences as the additional amount that
the Company expects to pay as a result of the unused entitlement that has accumulated at the end of the reporting period. The Company
recognises accumulated compensated absences based on actuarial valuation. Non-accumulating compensated absences are recognised
in the period in which the absences occur. The Company recognises actuarial gains and losses immediately in the statement of profit and
loss.
c) Provident fund, pension fund, and new national pension scheme: The Company offers its employees defined contribution plan in
the form of provident fund, family pension fund and new national pension scheme. The Company pays contribution towards provident fund
and new national pension scheme to publicly administered funds as per local regulations. The Company has no further payment obligations
once the contributions have been paid. The Company recognises contribution as expense when they are due under the head employee
benefits expense in the statement of profit and loss.
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