2: Material Accounting Policies
2.1 Basis of accounting and preparation

The financial statements of the Company 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). The Company
has prepared the financial statements on the basis that it
will continue to operate as a going concern. The Directors
consider that there are no material uncertainties that may
cast doubt significant doubt over this assumption. They
have formed a judgement that there is a reasonable
expectation that the Company has adequate resources to
continue in operational existence for the foreseeable future.

The financial statements have been prepared on historical
cost basis, except for certain financial assets and
liabilities, which are measured at fair value, based on their
classification. (refer accounting policy 2.2 (o) on financial
instruments), equity settled share based payment plans at
grant date fair value and defined benefit plans.

The Financial statements are presented in Indian rupees
(INR) and all values are rounded to the nearest lakh,
except when otherwise indicated.

a Business Combinations and goodwill

Business combinations are accounted for using the
acquisition method. The consideration transferred in
a business combination is measured at fair value,
which is calculated as the sum of the acquisition
date fair values of the assets transferred by the
Company, liabilities incurred by the Company to the
former owners of the acquiree and the equity interests
issued by the Company in exchange of control of
the acquiree. Acquisition related costs are generally
recognized in profit or loss as incurred.

At the acquisition date, the identifiable assets acquired
and the liabilities assumed are recognized at their fair
value, expect that:

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

b. Assets (or disposal Company's) 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.

c. 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.

d. 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

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.

Goodwill is measured as the excess of the sum of the
consideration transferred, the amount of any non¬
controlling interests in the acquire, and the fair value of the
acquirer’s previously held equity interest in the acquire (if
any) over the net of the acquisition-date amounts of the
identifiable assets acquired and the liabilities assumed.

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 recognised in profit or loss or OCI,
as appropriate.

Any contingent consideration to be transferred by the
acquirer is recognised 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
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 recognised 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
recognised 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 recognised in OCI and accumulated in
equity as capital reserve. However, if there is no clear
evidence of bargain purchase, the entity recognises
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 recognised in profit or
loss. An impairment loss recognised 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 recognised, 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.

b Current versus non-current classification

The Company presents assets and liabilities in
the balance sheet based on current/ non-current
classification as per criteria set out in IndAS 1
"Presentation of Financial Statements". 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,

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.

Deferred tax assets and liabilities are classified as
non-current assets and liabilities.

The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash
and cash equivalents. The Company has identified
period upto twelve months as its operating cycle.

c Foreign currencies

The Company's financial statements are presented in
INR, which is also the Company's functional currency.

Income and expenses in foreign currencies are
recorded at exchange rates prevailing on the date of
the transaction.

Foreign currency denominated monetary assets
and liabilities are translated at the exchange rate
prevailing on the reporting date and exchange gains
and losses arising on settlement and restatement are
recognised in the statement of profit and loss.

Non-monetary assets and liabilities that are measured
in terms of historical cost in foreign currencies are
not retranslated.

Exchange differences arising on settlement or
transaction of monetary items are recognised
in profit or loss

d Fair value measurement

The Company measures financial instruments
such as current investment 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,
maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.

All assets and liabilities for which fair value is
measured or disclosed in the financial statements are
categorised 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 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.

The Company determines the policies and procedures
for both recurring fair value measurement, such as
unquoted financial assets measured at fair value.

External valuers are involved for valuation of
significant assets and liabilities, such as financial
assets, and significant liabilities. Involvement of
external valuers is decided upon annually by the
Company management. Selection criteria include
market knowledge, reputation, independence and
whether professional standards are maintained. The
Company management decides with the Company’s
external valuers, which valuation techniques and
inputs to use for each case.

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

The Company management also compares the
change in the fair value of each asset and liability with
relevant external sources to determine whether the
change is reasonable.

The Company management present the valuation
results to the Board of Directors and the Company’s
independent auditors. This includes a discussion of
the major assumptions used in the valuations.

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 and other fair value related disclosure given in
relevant notes.

- Financial instruments (Refer 2.2 (o))

e Revenue from Operations (Revenue from Contract
with Customers)

Revenue from contracts with customers is recognised
when services are delivered to the customer at an
amount that reflects the consideration to which the
Company expects to be entitled in exchange for
those goods or services. The Company has generally
concluded that it is the principal in its revenue
arrangements because it typically controls when
services are being delivered to the customer.

Revenue towards satisfaction of a performance
obligation is measured at the amount of transaction
price (net of variable consideration, if any) allocated
to that performance obligation. The transaction price
of goods sold and services rendered is net of variable

consideration, if any, on account of various discounts
and schemes offered by the Company as part of the
contract. Payment is generally received on successful
completion of services

Rendering of services:

Website services and fees: Includes the following:

a) Advertisement income : pertains to revenue
generated from the display ads on company
websites. The performance obligation is satisfied
over time upon display of the advertisement, net
commissions if any.

b) Lead generation revenue: pertains to fees
for leads shared with and / or concluded for
customers, ie lead generation, is recognized over
time on the successful generation and delivery
of the lead as the customer simultaneously
receives and consumes the benefits provided
by the Company.

c) Managed solutions: Revenue from events,
marketing, multimedia and digital services are
recognised over time on rendering of services.

Variable consideration

If the consideration in a contract includes a variable
amount, the Company estimates the amount of
consideration to which it will be entitled in exchange
for transferring the goods to the customer. The
variable consideration is estimated at contract
inception and constrained until it is highly probable
that a significant revenue reversal in the amount
of cumulative revenue recognised will not occur
when the associated uncertainty with the variable
consideration is subsequently resolved. Some of the
contracts with customer provide a right to customer
of cash rebate/discount if payment is cleared within
specified due dates.

- 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 section
(o) Financial instruments - initial recognition and
subsequent measurement.

- 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 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.

f Other income

a) Dividend from investments are recognised when
the right to receive payment is established and no
significant uncertainty as to collectability exists.

b) Interest income is recognized on time proportion
basis taking into account the amount outstanding
and the rate applicable for all financial instruments
measured at amortised cost and other interest¬
bearing financial assets, interest income is
recorded using the effective interest rate (EIR).
EIR is the rate that exactly discounts the
estimated future cash receipts over the expected
life of the financial instrument or a shorter period,
where appropriate, to the gross carrying amount
of the financial asset. When calculating the
effective interest rate, the Company estimates
the expected cash flows by considering all the
contractual terms of the financial instrument (for
example, prepayment, extension, call and similar
options) but does not consider the expected
credit losses. Interest income is included in other
income in the statement of profit or loss.

c) For gains on fair valuation of financial
instruments through Profit & Loss, refer to the
accounting policy in 2.2 o.

g Leases

The Company assesses at contract inception
whether a contract is, or contains, a lease. That is,
if the contract conveys the right to control the use of
an identified asset for a period of time in exchange
for consideration.

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.

i) 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).It Includes office premises taken on rent.
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 shorter of the lease term and the
estimated useful lives of the assets.

The right-of-use assets are also subject to
impairment. The estimated useful lives of the
assets is 3 to 5 years.

ii) 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 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. Variable lease payments that do not
depend on an index or a rate are recognised as
expenses (unless they are incurred to produce
inventories) in the period in which the event or
condition that triggers the payment occurs.

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 applies the short-term lease
recognition exemption to its short-term leases
of machinery and 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.

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.

h Retirement and other employee benefits

i. Short term employee benefits

The undiscounted amount of short term
employee benefits expected to be paid in
exchange for services rendered by employees
is recognised during the period when the
employee renders the service. These benefits
include compensated absences such as paid
annual leave and performance incentives
payable within twelve months.

ii. Post-employment 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 expense, 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 cost of providing benefits under the defined
benefit plan is determined using the projected
unit credit method.

Remeasurements, comprising of actuarial
gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on
the net defined benefit liability and the return on
plan assets (excluding amounts included in net
interest on the net defined benefit liability), are
recognised 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
profit or loss in subsequent periods.

Past service costs are recognised in profit or
loss on the earlier of:

i. The date of the plan amendment or
curtailment, and

ii. The date that the Company recognises
related restructuring costs

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

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

ii. Net interest expense or income

iii. Other long-term employee benefits

Compensated absences which are not expected
to occur within twelve months after the end of
the period in which the employee renders the
related services are recognised as a liability
at the present value of the defined benefit
obligation at the balance sheet date.

Taxes

i) Current 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
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 considers whether it is probable that a
taxation authority will accept an uncertain tax
treatment. The Company shall reflect the effect
of uncertainty for each uncertain tax treatment
by using either most likely method or expected
value method, depending on which method
predicts better resolution of the treatment.

ii) 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 credits
and unused tax losses can be utilised, except:

iii. 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

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 assets and liabilities are measured
at the tax rates that are expected to apply in the
year when the asset is realised, 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 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. 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.

j Property Plant and Equipment

Property, Plant and Equipment are stated at cost net
of accumulated depreciation and impairment losses,
if any. Such cost includes the cost of purchase price
/ cost of construction, including non-refundable taxes
or levies and any expenses attributable to bring the
assets to its working condition for its intended use.

Capital work in progress is stated at cost, net of
accumulated impairment loss if any.

Subsequent costs are included in the asset’s carrying
amount or recognised as separate assets, as
appropriate, only when it is probable that the future
economic benefits associated with expenditure will
flow to the Company and the cost of the item can be
measured reliably. All other repairs and maintenance
are charged to Statement of Profit and Loss at the
time of incurrence.

Depreciation is provided for Property, Plant and
Equipment so as to expense the cost over its useful
life. The estimated useful lives, residual value and
method of depreciation are reviewed at the end of
each financial year and any change in estimate is
accounted for on a prospective basis.

Depreciation is charged on a pro-rata basis for
Property, Plant and Equipment purchased and sold
during the year. Depreciation is calculated on the
straight-line method as per the estimated useful life
prescribed in Schedule II to the Companies Act, 2013.
The residual value of the assets at the end of life is Nil.

Estimated useful lives of the assets are as follows:

i) Computers - 3 Years / servers - 6 Years

ii) Furniture and Fixtures - 10 Years

iii) Vehicle - 5 Years

iv) Leasehold Improvement - 60 months or lease
period whichever is lower

v) Office equipment - 3 Years

vi) Building - 60 Years

The Company, based on management estimate,
depreciates office equipment over estimated useful
lives which are different from the useful life prescribed in
Schedule II to the Companies Act, 2013 (as amended).
The management believes that these estimated useful
lives are realistic and reflect fair approximation of the
period over which the assets are likely to be used.

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
derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying
amount of the asset) is included in the statement of
profit and loss when the asset is derecognised.

k 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
any accumulated amortisation and accumulated
impairment losses. Internally generated intangibles,
excluding capitalised development costs, are
not capitalised and the related expenditure is
reflected in profit or loss in the period 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.

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 recognised
in the statement of profit or loss when the asset
is derecognised.

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.

Cost of software is amortised over a period 4 years.

The Company has elected to continue with the carrying
value for all of its Intangible assets as recognised in
its previous GAAP financial statements as deemed
cost on the transition date i.e. 01 April 2018.

l Impairment of non-financial assets

At the end of each reporting period, the Company
reviews the carrying amounts of its tangible assets,
intangible assets and financial guarantee contracts
to determine whether there is any indication that
those assets have suffered an impairment loss. If any
such indication exists, the recoverable amount of the
asset is estimated in order to determine the extent of
the impairment loss (if any). When it is not possible
to estimate the recoverable amount of an individual
asset, the Company estimates the recoverable
amount of the cash-generating unit to which the asset
belongs. When a reasonable and consistent basis
of allocation can be identified, corporate assets are
also allocated to individual cash-generating units, or
otherwise they are allocated to the smallest Company
of cash-generating units for which a reasonable and
consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less
costs of disposal and value in use. 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
for which the estimates of future cash flows have
not been adjusted.

If the recoverable amount of an asset (or cash¬
generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (or cash¬
generating unit) is reduced to its recoverable amount.
An impairment loss is recognised immediately in
profit or loss.

When an impairment loss subsequently reverses, the
carrying amount of the asset (or a cash-generating
unit) is increased to the revised estimate of its
recoverable amount, but so that the increased carrying
amount does not exceed the carrying amount that
would have been determined had no impairment loss
been recognised for the asset (or cash-generating
unit) in prior years. A reversal of an impairment loss is
recognised immediately in profit or loss.

For assets excluding goodwill, an assessment is
made at each reporting date to determine whether
there is an indication that previously recognised
impairment losses no longer exist or have decreased.
If such indication exists, the Company estimates the
asset’s or CGU’s recoverable amount. A previously
recognised 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 recognised. 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
recognised for the asset in prior years. Such reversal
is recognised 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 at each
reporting date 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 Company of CGUs) to
which the goodwill relates. When the recoverable
amount of the CGU is less than it’s carrying amount,
an impairment loss is recognised. Impairment
losses relating to goodwill cannot be reversed in
future periods.

m Provisions and Contingencies

A provision is recognised when the Company has a
present obligation as a result of past events and it is
probable that an outflow of resources will be required
to settle the obligation in respect of which a reliable
estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed when there
is a possible obligation arising from past events,
the existence of which will be confirmed only by
occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Company or a present obligation that arises
from past events where it is either not probable that
an outflow of resources will be required to settle or
a reliable estimate of the amount cannot be made.
Contingent liabilities are disclosed in the notes.
Contingent assets are not recognised in the financial
statements. A contingent asset is not recognized
unless it becomes virtually certain that an inflow
of economic benefits will arise. When an inflow of
economic benefits is probable, contingent assets are
disclosed in IndAS financial statements.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to
the liability. When discounting is used, the increase in
the provision due to the passage of time is recognised
as a finance cost.

Provisions and contingent liabilities are reviewed at
each balance sheet date.

n Share Based Payment arrangements

Equity-settled share based payments to employees
(including senior executives) are measured at the
fair value of the equity instruments at the grant date.
Details regarding the determination of the fair value of
equity-settled share based payments transactions are
set out in Note 31.

The fair value determined at the grant date of the
equity-settled share based payments is expensed on
a straight-line basis over the vesting period, based
on the Company’s estimate of equity instruments that
will eventually vest, with a corresponding increase
in equity. At the end of each reporting period, the
Company revises its estimate of the number of equity
instruments expected to vest. The impact of the

revision of the original estimates, if any, is recognized
in Statement of Profit and Loss such that the
cumulative expenses reflects the revised estimate,
with a corresponding adjustment to the Share Based
Payments Reserve.

No expense is recognised for awards that do not
ultimately vest because non-market performance
and/or service conditions have not been met.

The dilutive effect of outstanding options is reflected
as additional share dilution in the computation of
diluted earnings per share.

Equity-settled share-based payment transactions
with parties other than employees are measured at
the fair value of the services received, except where
that fair value cannot be estimated reliably, in which
case they are measured at the fair value of the
equity instruments granted, measured at the date the
counterparty renders the service.

o Financial Instruments
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 financial 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. Refer to the accounting policies in section
(e) Revenue from contracts with customers.

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.

Subsequent measurement

For purposes of subsequent measurement, financial

assets are classified in two categories:

(i) Financial assets at amortised cost

(ii) Financial assets at fair value through profit or loss

(i) Financial assets at amortised cost

A ‘financial asset’ is measured at the amortised
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.

After initial measurement, such financial
assets are subsequently measured at
amortised cost using the effective interest
rate (EIR) method and are subject to
impairment as per the accounting policy
applicable to ‘Impairment of financial
assets.’ Amortised 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
amortisation is included in other income in
the profit or loss. The losses arising from
impairment are recognised in the profit or
loss. The Company’s financial assets at
amortised cost includes trade receivables,
cash & cash equivalents and other
financial assets.

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

Financial assets are measured at fair value
through statement of profit or loss unless it
is measured at amortised cost or at fair value
through other comprehensive income on
initial recognition.

In addition, the Company may elect to classify
a financial asset, which otherwise meets
amortized cost or FVTOCI criteria, as at FVTPL.
However, such election is allowed only if doing
so reduces or eliminates a measurement
or recognition inconsistency (referred to as
‘accounting mismatch’).

The Company’s financial assets at FVTPL
include investments in mutual funds.

De-recognition

A financial asset (or, where applicable, a
part of a financial asset or part of a Company
of similar financial assets) is primarily de¬
recognised (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
recognise the transferred asset to the extent
of the Company’s continuing involvement. In
that case, the Company also recognises 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 lower of the original carrying amount of the
asset and maximum amount of consideration
that the Company could be required to repay.

Impairment of financial assets:

In accordance with Ind-AS 109, the Company
applies expected credit loss (ECL) model for
measurement and recognition of impairment
loss on the financial assets measured at
amortised cost for i.e. trade receivables and
contract assets

For trade receivables and contract assets,
the Company applies a simplified approach in
calculating ECLs. Therefore, the Company does

not track changes in credit risk, but instead
recognises a loss allowance based on lifetime
ECLs at each reporting date. The Company has
established a provision matrix that is based on
its historical credit loss experience, adjusted for
forward-looking factors specific to the debtors
and the economic environment.

The balance sheet presentation for
financial assets measured as at amortised
cost is as follows:

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 assessing increase in credit risk and
impairment loss, the Company combines
financial instruments on the basis of shared
credit risk characteristics with the objective of
facilitating an analysis that is designed to enable
significant increases in credit risk to be identified
on a timely basis.

The Company does not have any purchased
or originated credit-impaired (POCI) financial
assets, i.e., financial assets which are credit
impaired on purchase/ origination.

Financial liabilities and Equity instruments
Initial Recognition and Measurement

Debt and equity instruments issued by the
Company are classified as either financial
liabilities or as equity in accordance with the
substance of the contractual arrangements
and the definitions of a financial liability and an
equity instrument.

i. Equity instruments

An equity instrument is any contract that
evidences a residual interest in the assets
of an entity after deducting all of its liabilities.
Equity instruments issued by a Company
entity are recognised at the proceeds
received, net of direct issue costs.

ii. Financial liabilities

All financial liabilities are recognised initially
at fair value and subsequently measured at
amortised cost using the effective interest
method or at FVTPL.

balance sheet if there is a currently enforceable
legal right to offset the recognised amounts and
there is an intention to settle on a net basis,
to realise the assets and settle the liabilities
simultaneously.

p Cash and Cash Equivalents

Cash comprises cash on hand. Cash equivalents
are short-term balances (with an original maturity of
three months or less from the date of acquisition),
highly liquid investments that are readily convertible
into known amounts of cash and which are subject to
insignificant risk of changes in value.

q Earning Per Share

Basic earnings per share has been computed by
dividing profit or loss for the year by the weighted
average number of shares outstanding during the
year. Diluted earnings per share has been computed
using the weighted average number of shares and
dilutive potential shares, except where the result
would be anti-dilutive.

r Investment in Subsidiary

The Company recognizes its investment in subsidiary
companies at cost less accumulated impairment loss
if any. Cost represents amount paid for acquisition of
said investments. The details of such investment is
given in note 5.

On disposal of an investment, the difference between
the net disposal proceeds and carrying amount is
charged to statement of profit and loss account.

s Impairment of investments

The Company reviews its carrying value of investments
carried at cost annually, or more frequently when there
is indication for impairment. If the recoverable amount
is less than its carrying amount, the impairment loss
is recorded in the Statement of Profit and Loss.

.3 Significant accounting judgements and key sources
of estimation uncertainty

In application of Company's accounting policies, which are
described above, the directors of the Company are required
to make judgements, estimations and assumptions about
the carrying value of assets and liabilities that are not
readily apparent from other sources. The estimates and
associated assumptions are based on historical experience
and other factors that are considered to be relevant. Actual
results may differ from these estimates.

The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised
if the revision affects only that period, or in the period of

revision or future periods if the revision affects both current

and future periods.

a) Operating lease classification and determining
the lease term of contracts with renewal &
termination options - Company as a lessee

The Company has entered into lease agreements with
lessor and has determined, based on an evaluation
of the terms and conditions of the arrangements,
such as the lease term not constituting a major part
of the economic life of the commercial property and
the fair value of the asset, that it does not retains
the significant risks and rewards of ownership of
these properties and accounts for the contracts as
operating leases.

The Company determines the lease term as the
non-cancellable term of the lease, together with any
periods covered by an option to extend the lease if it
is reasonably certain to be exercised, or any periods
covered by an option to terminate the lease, if it is
reasonably certain not to be exercised. The Company
has lease contracts that include extension and
termination options. The Company applies judgement
in evaluating whether it is reasonably certain whether
or not to exercise the option to renew or terminate
the lease. That is, it considers all relevant factors that
create an economic incentive for it to exercise either
the renewal or termination. After the commencement
date, the Company reassesses the lease term if there
is a significant event or change in circumstances that
is within its control and affects its ability to exercise or
not to exercise the option to renew or to terminate.

b) Impairment of non-financial assets:

The carrying amounts of the Company’s non-financial
assets, other than deferred tax assets, are reviewed at the
end of each reporting period to determine whether there
is any indication of impairment. If any such indication
exists, then the asset’s recoverable amount is estimated.

The recoverable amount of an asset or cash-generating
unit (‘CGU’) is the greater of its value in use and its
fair value less costs to sell. 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 or CGU. For the purpose
of impairment testing, assets that cannot be tested
individually are accompanied together into the smallest
Company of assets that generates cash inflows from
continuing use that are largely independent of the cash
inflows of other assets or Company of assets (‘CGU’).

Market related information and estimates are used to
determine the recoverable amount. Key assumptions

on which management has based its determination of
recoverable amount include estimated long term growth
rates, weighted average cost of capital and estimated
operating margins. Cash flow projections take into
account past experience and represent management’s
best estimate about future developments.

c) Impairment of financial assets:

The impairment provisions for financial assets are based
on assumptions about risk of default and expected
cash loss rates. The Company uses judgements in
making these assumptions and selecting the inputs
to the impairment calculations based on Company’s
history, existing market conditions as well as forward
looking estimates at the end of each reporting period.

d) Taxes

Deferred tax assets are recognized for unused tax
losses to the extent that it is probable that taxable profit
will be available against which the losses can be utilized.
Significant management judgement is required to
determine the amount of deferred tax assets that can be
recognised, based upon the likely timing and the level
of future taxable profits together with future tax planning
strategies. Provision for tax liabilities require judgements
on the interpretation of tax legislation, developments in
case law and the potential outcomes of tax audits and
appeals which may be subject to significant uncertainty.
Therefore, the actual results may vary from expectations
resulting in adjustments to provisions, the valuation of
deferred tax assets, cash tax settlements and therefore
the tax charge in the Statement of Profit or Loss.

e) Estimated useful life of property plant and
equipment and intangible assets

The charge in respect of periodic depreciation/
amortization is derived after determining an estimate of
an asset's expected useful life and the expected residual
value at the end of its life. Management at the time the
asset is acquired/ capitalized periodically, including at
each financial period/year end, determines the useful
lives and residual values of Company’s assets. The
lives are based on historical experience with similar
assets as well as anticipation of future events, which
may affect their life, such as changes in technology.
The estimated useful life is reviewed at least annually.

f) Leases - Estimating the incremental borrowing rate

The Company cannot readily determine the interest
rate implicit in the lease, therefore, it uses its
incremental borrowing rate (IBR) to measure lease
liabilities. The IBR is the rate of interest that the
Company would have to pay to borrow over a similar
term, and with a similar security, the funds necessary
to obtain an asset of a similar value to the right-of-use
asset in a similar economic environment.

g) Share-based payment

The cost of equity-settled transactions is determined
by the fair value at the date when the grant is made
using an appropriate valuation model. Further details
are given in Note 31

That cost is recognised, together with a corresponding
increase in share-based payment (SBP) reserves in
equity, over the period in which the performance and/
or service conditions are fulfilled in employee benefits
expense. The cumulative expense recognised for
equity-settled transactions at each reporting date until
the vesting date reflects the extent to which the vesting
period has expired and the Company’s best estimate
of the number of equity instruments that will ultimately
vest. The expense or credit in the statement of profit and
loss for a period represents the movement in cumulative
expense recognised as at the beginning and end of that
period and is recognised in employee benefits expense.

Service and non-market performance conditions are
not taken into account when determining the grant date
fair value of awards, but the likelihood of the conditions
being met is assessed as part of the Company’s best
estimate of the number of equity instruments that will
ultimately vest. Market performance conditions are
reflected within the grant date fair value. Any other
conditions attached to an award, but without an
associated service requirement, are considered to be
non-vesting conditions. Non-vesting conditions are
reflected in the fair value of an award and lead to an
immediate expensing of an award unless there are
also service and/or performance conditions.