2. Material Accounting Policies
This note provides a list of Ihe material accounting policies
adopted In the preparation of these standalone financial
statements These accounting policies have been consistently
applied to all the years presented by the Company unless
otherwise stated
Basis of preparation and Reclassification of
Financial Statements
i. Statement of compliance
These standalone financial statements have been prepared In
accordance with the Indian Accounting Standauls (‘inr: AS’)
notified under 5ection 133 ot ihe Companies Act, 2013 ('the
Act'I read with rule 3 of the Companies (Indian Accounting
Standards) Rules. 2015 as amended from time to time and
other relevant provisions of the Act.
Accordingly, the Company has prepared these Standalone
Financial Statements which comprise the Balance Sheet as at
March 31. 2025. the 5tatemenl of Profit and Loss toi the yeai
ended March 31, 2025, the Statement of Cosh Flows for the
year ended March 31. 2025 and the Statement of Changes in
Equity tor the year ended as on that date and accounting
policies and other explanatory Infounatlon (together
hereinafter refeued to as 'Standalone Financial Statements')
I he accounting policies are applied conslstenlly to ah the
periods presented in the standalone financial statements
New and Amended Standards adopted by the Company
No new standards as notified py Ministry of Corporate Affairs
("MCA'), through Companies (Indian Accounting Standards)
Amendment Rules, 2022 and Companies (Indian Accounting
Standards) Second Amendment Rules are effective for the
current year
The Company has applied the following amendments to Ind AS
fot Ihe first time for IMelr annual reporting period commencing
April T, 2021
• Interest rate benchmark reform - amendments to Ind *5
109, Financial Instruments, Ind AS 107, Financial
instruments. Disclosures ind AS 104 Insurance Contracts
and Ind AS 116, Leasc-s
There is no impact on the Company our- to the application ot
the above amendments.
The Mlmsiry of Corporate Affairs has vide notification daten
March 23.2022 not>f<ed Companies (Indian Accounting
Standards) Amendment Rules. 2023 which amends certain
accounting standards, and are effective April t, 2023 These
amendments are not expected to have a material impact on
Ihe Company In the current or future reporting peilods and
on foreseeable future transactions
Also the MCA has notified Ind AS 117 Insurance Contracts
and amendments to Ind AS 116 Leases, relating to sale
and leaseback transactions, applicable to the Company
w.c-.r Apni 01, 2024. The Company has reviewed the new
pronouncements and based on its evaluation has determined
that it does not have any significant impact n its financial
statements
ii. Functional and presentation currency
The Company's presentation ami functional currency Is
Indian Rupees Ah figures appealing in the Standalone
financial Statements are in Indian lupees In lakhs rounded of!
to two decimal places as permitted by Schedule III to me Act
Per shaie data a»e presented In Indian Rupee tu twu
decimal places
iii. Basis of measurement
Tne standalone financial statements have been prepared on
Historical cost convefttion on Ihe accrual basis as per the
provisions of the Companies Act. 2013 (“the Act')" except for
certain financial assets and liabilities are measured at fair
value as explained In Ihe accounting policy Historical cost is
generally based on the fair value of the consideration given in
exchange for goods and services. Further assets and liabilities
are classified as per the normal operating cycle (determined as
12 months)
iv. Fair value measurement
Fair value Is the pnee that would be received on sale of an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date In the
principal or, in its absence, the most advantageous market to
Which ihe Company has access at that date
The best estimate of the fair value of o financial Instrument on
mitral recognition Is normally Ihe transaction price. If (he
Company determines that the fan value on Initial recognition
differs from the transaction pnee and the fair value is
evidenced neither by a quoted price in an active market for an
identical asset or liability nor based on a valuation technique
that uses only data trom observaole markets then the financial
instrument is initially measured at fair vame, adjusted to defer
the difference between the fair value on initial recognrtion ana
the transaction price. Subsequently that difference is
lecognised in Statement of Profit and Loss on an appropriate
basis over the life of the Instrument but no later than when the
valuation is wholly supported by observable market data or
the transaction is closed out.
All assets and liabilities for which fair value is measured oi
dlsaosed iri me standalone financial statements are
categorised within me fan value hierarchy described as
follows, based on the lowest level input that is significant to
ihe fair value measurement as a whole
• Level 1 • Valuation using quoted market price In active
markets. The fair value forfinanc al instruments traded In
active markets at the reporting date Is based on Their
quoted market price, without any deduction fo«
transaction costs A market is regarded as active, if
transactions for the asset oi liability take p'oee wlfh
sufficient frequency and volume to provide pricing
information on an ongoing oasis
• Level 2 Valuation using observable mpuls: If there is no
quoted price In an active market then Ihe Company uses
valuation techniques that maximise the use of relevant
observable nputs and minimise the use of unobservable
inputs The chosen valuation technique incorporates most
of the factors that market participants would take Into
account in pricing a transaction
• level 3 - Vacation with significant unobservable inputs;
The valuation techniques ore used only when fair value
cannot be rietei mined by using observable inputs. The
Company regularly reviews significant unobservable
inputs and valuation adjustments. Level 3 assets are
typically very Illiquid, and fair values can only be
calculated using estimates
f he Company uses valuation techniques that are appropriate
in the circumstances and for which sufficient data are
available to measure fan value, maximising the use of
relevant observable inputs and minimising the use of
unobservable inputs.
v. Use of judgment and Estimates
fhe preparation of the standalone financial statements
requires fhe management to make judgments, estimates and
assumptions In the application ot accounting policies that
affects the reported amount of assets, liabilities ana the
accompanying dlsciosuies along with contingent liabilities as
at the date of standalone financial statements and revenue &
expenses for the reporting period. Although these estimates
are based on the management's best knowledge of curroni
events and actions, uncertainty about these assumptions r>na
estimates could result in outcomes dlffeient from the
estimates Difference between actual results and estimates
are recognised m me yeai in which me results aie known or
materialise re prospectively
Estimates and judgements are continually evaluated and are
based on historical experience and other factors. Including
expectations of future events that are believed to be
reasonable uncle the circumstances. The key areas involving
estimation uncertainty, higher degree of judgement or
complexity, or areas where assumptions are significant to the
standalone financial statements include
a) Impairment ol financial assets
b) Estimation ol fair value measurement of financial assets arid
liabilities
c) Provisions and Contingencies
d) Useful fife and expected residual value of assets
e) Tax position for current lax and recognition oi deferred tax
assets/llabifitles
i) Measurement of Defined Benefit Obligations and actuarial
assumptions
g) Share Based Payments
h) Measurement of Expected C-edit Loss allowance foe Trade
receivables
A Summary of significant accounting policies
1. Current versus non-current classification
The Company presents assets and liabilities in Ihe balance
sheet based on current /non-current classification
An asset is troatoo as current when it is
• Expected to be realized or intended to be sold or
consumed in normal operating cycle.
• Held primarily for the put pose of trading
• Expected to be realized within twelve months after the
reporting date, or
• Cash or cash equivalent unless restricted finm being
exchanged or used to settle a liability fo< at least twelve
irimflhs after the reporting period
All other assets ate classified as non-current,
A liability is current when
• It is expected to be settled in normal operating cycle
- It is due to be settled Witrnn twerve montlis after me
reporting perioa. or
- There s no unconditional right to defer the settlement o!
the liability for at least •welve months after the reporting
penod
All other liabilities at classified as non-current
Deferred tax assets and liabilities are classified as non-current
assets and liabilities
Based on the nature of products and services offered oy the
Company, operating cycle determined Is 12 months for the
purpose of current and non-current class.ftcatlon of assets
and liabilities.
The operating cycle is the time between the acquisition of
assets for processing ana their realisation n cash and
cash equivalents.
2. Revenue Recognition
Revenue is measured of the fair value of the consideration
received or receivable Revenue is recognized to the extent
that It s probable that the economic benefits will Mow to the
Company and the revenue can be reliably measured and there
exists reasonable certainty of its recovery
Sale of services
The Company recognizes revenue on accrual basis when the
significant terms of the arrangement are enforceable, services
have been delivered and the collectability is reasonably
assured. The metnod of recognizing the revenues and costs
depends on me nature of the services rendered Revenue Is
recognized when no significant uncertainty exists as to its
realization or collection
The Company recognizes income from Business Supoort
Service on account of providing 'administrative services' to its
Subsidiaries and Group companies. The term administrative
services will be as pei the terms ol agreement made oetween
the Company with Its subsidiaries and Group Companies.
Interest Income
interest income from financial assets is recognized when it is
probable that economic benefits will flow to the- company and
the amount of income can be measured reliably, interest
income Is accrued ort a rime basis, by teference to the
principal outstanding and at the effective Interest rate
applicable which is ihe rate lhat exadty discounts estimated
future cash receipts through the expected life of the financial
assets to that asset's net carrying amount nn Initial recognition
3. Property, Plant and Equipment
i! eld USI the supply of services, or
for administrative purposes, are stated in the Balance Sheet
at cost less accumulated depreciation and accumulated
Impairment losses Freehold land is not depreciated
All Items cf property, plant and equipment are initially recordec
at cost the cost of property, plant and equipment compr'Ses
Its purchase price net of any trade discounts ana rebates, any
Import duties and other taxes (other than those subsequently
recoverable from the tax authorities), any directly attributable
expenditure on making the asset ready for its Intended use.
including rele vant borrowing costs for qualifying assets and
any expected costs of decommissioning Expenditure Incurred
after the property, plant and equipment have been put into
ope-iatron, such os repairs and maintenance, are charged to
the Statement of Profit and loss <r* fhe year In which the costs
are incurred. The cost of an item of property, plant, equipment
is recognized as an asset if. & only if, ll is probable that future
economic benefits associated wrth the item will flow to the
company and the cost of the item can be measured leliably
Ali items of property, plant and equipment having cost more
than Rs. 5000/- are recognized as an asset
Properties in the cou’se of construction for production, supply
or administrative purposes are earned at cost, less any
recognized impairment loss Cost includes professional fees
and, for qualifying assets, oonowing costs capitalized In
accordance with the company's accounting policy Such
properties are classilied to the appropriate categories of
property, plant and equipment when completed and ready tor
"tended use. Depreciation of these assets, on the same basis
as other property assets, commences when the assets are
ready for their intended use
Capital Work in Progress and Capital Advances
Capital work-in progress are property, plant and equipment
which are not yet ready tor their intended use Advances given
towards acquisition of fixed assets outstanding at each
reporting date are shown as other non-flnancial assets
Deprecation Is not recorded on capital work - In progress
until construction nod installation is completed and assets are
ready for Its intended use.
Subsequent to recognition, property, plant and equipment
(excluding freehold land) are measured at cost less
accumulated depreciation and accumulated impairment
tosses When significant parts of property, plant and
equipment are required to be replaced in intervals, the
company recognizes such parts as Individual assets with
specific useful lives and depreciation respectively. Likewise,
when a major inspection is performed, its cost is recognized in
the carrying amount of the plant anc equipment as a
replacement cost only if the recognition criteria are satisfied
Ali other repair and maintenance costs are recognized In the
Slatement of Profit and loss as incurred
Depreciation is recognised so as to write off the cost of assets
iess their residual values over the useful lives as prescribed tn
Schedule ll of to the Companies Act, 2013, using ihe straight¬
line method (*SLM"I Residual value Is considered m| case ol
Computers. Server and netwoik and 5% Is considered in case
of other assets.
The cost ot property, plant and equipment at April Ol. 2018.
the Company's date of transition to Ind AS. was determined
With reference to Its carrying value recognised as per the
previous GAAP (deemed cost), as at the date ot transition
to Ind AS
The carrying values of property, plant nnc! equipment are
reviewed for impairment when events or changes in
circumstances indicate that tne carrying value may not be
recoverable. The residual values, useful life nnq depreciation
method are reviewed at each financial year-end ro ensure that
the amount, method and period of depreciation are consistent
with previous estimates and the expected pattern of
consumption of the future economic benefits embodied in the
items of property, plant and equipment
An item ol property, plant and equipment '5 derecognised
upon disposal or when no future economic benefits are
expected to arise from the continued use ot the asset Any
gain or Joss arising on disposal or retirement of an item of
property, plant and equipment is determined as the difference
between sale proceeds and the canylng amount of the asset
and is recognised In profit or loss
4. Investment Properties
Investment properties are properties that is held (or long-term
rentals yields or fm capital appreciation (Including property
under construction lot such purposes) or both, and that is not
occupied by the Company, Is classified as investment properly
Investment propedies are measured initially at tost, including
transaction costs, Subsequent to initial recognition, Investment
properties are stated at cost less accumulated impairment loss,
it any Though the Company measures Investment property
using cost based measurement the fair value of Investment
property Is disclosed In the notos Investment properties are
derecognised either when they have been disposed of or
when they me permanently withdrawn from use and np future
economic benefit is expected from then disposal The
difference between fhe net disposal proceeds and the carrying
amount of the asset is recognised in profit or loss In the period
of derecognition.
5. Intangible Assets
The cost intangible assets at April 01. 2018, ihe Company's
date ot transition to ind AS, was determined with reference to
Its carrying value recognised os per the previous GAAP
(deemed cost), as at the dale of transition to Ind AS
Intangible asset Including Intangible assets under
development are stated at cost, net ol accumulated
amortisation and accumulated impairment losses, if any.
Intangible assets acquired separately are measured on initial
recognition at cost The amortization penod and the
amortisation method are reviewed at tne end of each financial
year The useful lives of intangible assets are assessed as
either finite orindefin te Intangible assets with finite ives are
amortised over fpo useful economic life and assessed tor
impairment whenever there sa dies t on that me intangi
asset may be impaired The amortisation period and the
amortisation method lor an intangible asset with a finite useful
life are reviewed at least at the end ot each reporting period
Changes In the expected useful life or the expected pattern ol
consumption ot 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
assots with infinite lives is recognised in the statement ot profit
and toss unless such expenditure forms part of carrying valuc-
of another asset
Useful life in case ol Intangible assets Is considered as
6 17 year
Nort-munetory assets and liabilities ire carded at historical
cost using ext Mange rales as on the bate ol (he lespecllve
transactions and are riot retranslated at me reporting date
6. Income Tax
The income tax expense ot c reait for the period is the tax
payable on the current period's taxable Income based on the
applicable income tax rate tor each jurisdiction adjusted by
changes In deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses
Current taxes
The tax currently payable is based on taxable profit for the
year, Taxable profit differs from 'profit before tax' as reported In
the Statement of Profit and Loss because of items of income or
expense that are taxable or deductible in other years and
•terns tnat are never taxable or deductible
Cuuent income tax s recognized at the amount expected to
oe pnlcj to or recovered from the tax authorities, using the tax
ntes and tax laws that have been enacted or substantively
enacted by tne balance sheet date. The Company offsets, cm a
year to year basis. Ihe current la> assets and liabilities, where if
has legally enforceable right to do so and where't intends to
settle suer, assets and liabilities on a net basis
Income cax expense is rccognjzed Iri net profit m the
statement of prone and loss except to the extent that It relates
to items recognized dircctry in other comprehensive income or
equity, in which case it Is recognized <r. other comprehensive
Income or equity respectively.
The promulgated Taxation i iw (Amendment) Ordinance 2019
ha^ inserted section 115BBA In me Inc ome Tax Act, 1961
providing existing domestic companies with an option to pay
tax at a concessional rate of 22% plus applicable sumhaige
and cess The Company has Irreversibly opted for the new lax
rate r.e. 2517%.
Deferred taxes
Deferred tax is recognized on differences between the
carrying amounts of assets and liabilities In the standalone
financial statements and the corresponamg tax bases used m
the computation of taxable profit and are accounted for using
the balance sheet approach. Deferred tax liabilities aie
generally recognized for all taxable temporary differences, nnc
deferred tax assets are generally recognized for all deductible
temporary differences to the extent that it is probable that
taxable profits will be available against which those deductible
temporary deferences can be utilized Such assets and
liabilities are not recognized it the temporary difference mlse^
from goodwill or from the Initial recognition (other than In a
business combination) ot other assets and liabilities in a
transaction lhal affects neither the taxable profit nor the
accounting profit Deferred tax assets and liabilities are
measured at the tax rates that are expected to apply In the
period in which the liability is settled or the asset is realised,
based on the tnx rates (and tax ‘awsi that nave been enacted
or substantively enacted by the end of the reporting period.
Deferred tax (elating to items recognised outside the profit
and toss is recognised outside outfit and loss leither m other
comprehensive income or in equity)
The carrying amount ol deterred fax assets is »ev<ewed at
each balance sheet date and reduced to the extent that rt Is ric
longer probable that sufficient taxable profits win be available
to allow all or pad of the asset to be recovered
Deferred tax assets and liabilities are offset when there is a
leqally enforceable right to set off ament tax assets against
current tax liabilities and when they relate to income taxes
levied by the same taxation authority and the Company
Intends to settle its current tax assets and liabilities on a
nel basis
7. Impairment of Non-Ftnancial Assets
At the end ot each leportmg period, the company reviews the
carrying amounts of its oroperty. plant and equipment
Investment property and Intangible assets to oetermlne
whether there .s 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 impairment toss (it 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 oe identified,
corporate assets are also allocated to Individual cash¬
generating units, or otherwise they are allocated to the
smallest group of cash-generating units for which a reasonable
and consistent allocation basis can be idem fieri
Intangible assets with Indetin.te usetul lives and intangible
assets not yet available tor use are tested for impairment at
least annually, arid whenever there >s an indication that the
asset may be impaired
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 piesent
value usmq a pre-tax discount rate that reflects current maiket
assessments of the tune value of money and the ilsks specific
to the asset for which the estimates of future cash flows have
not been adjusted
it 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 impa»rmenl loss Is recognized in the
statement ot profit and 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 so that the
increased carrying amount does not exceed the carrying
amount that would nave beeu determined had no impairment
loss been recognised tor the asset ( oi cash-generating un.y in
prloi years. A reversal of an impeiiment ioss Is recognised
immediately In statement oi profit and loss
8 Financial Instruments
A financial instrument is any contract that gives, nse to a
financial asset of one entity and a financial liability or equity
instrument of another entity
Financial Assets
a.) Initial recognition and measurement
All financial assets are recognised initially at fair value
Purchases or sales af financial assets that require delivery of
assets within a time frame established oy regulation or
convention in the market place (regular way trades) are
recognised on the trade date. *.e, tne date that the Company
commits to purchase or sell the asset.
On UTitial recognition, a financial asset is measured at
• Amortised cost
• £dir Value through Other Comprehensive Income - debt
instruments
• Fair Value through Other Comprehensive Income equity
instruments
• Fan Value Through Profit and Loss
Amortised cost - The Company’s business model Is nor
assessed on an Instrumertl-by-lnstiurnent basis, but at a highe
level of aggregated portfolios being the level at which they
are managed The financial asset is held with the objective to
hold financial asset In order to collect contractual cash flows
as per the contractual terms that g»ye use on specified dates
to cash nows that are solely payment ot principal and interest
(5PPI) on the principal amount outstanding. Accordingly the
Company measures Bank balances, Loans, Trade receivables
and other financial instruments at amortised cost
FVOCI • debt instruments - The Company measures its ac-Dt
instr uments at FVOCI when the Instrument is held within a
business model, the objective of which Is achieved by both
collecting contractual cash flows and soiling financial assets:
anti the contractual terms of the financial asset meet the
SPPI test
FVOCI - equity instruments - The Comptvry subsequently
measures all equity investments at fair value through profit or
loss, unless the Company's management has elected to
classify Irrevocably some of Its equity Instruments at cVOCI,
whan such instruments meet the definition of Equity under Ind
AS 32 Financial instruments and are not neld for trading,
Financial assets are not reclassified subsequent to their mitral
recognition, except if and In the period the Company changes
its business model for managing financial assets.
All (manr.li)' assets not classified -is measured at amor used
cost or FVOCI are measured at FVTPi This includes oil
derivative financial assets
b.) Subsequent measurement
Financial assets at amortised cost are subsequently
measured at amortised cost using effective Intelest method,
Fhe amortised cost <s reduced by Impairment losses Interest
lÝ rune, totelgn e^hange gains and losses and impalrmec.i
are recognised In Statement Of Profit and Loss. Any gam and
loss on derecogndion is recognised In Statement of Profit
and Loss.
Debt investment at FVOCI are subsequently measured at fair
value. Interest income under effective interest method, foreign
exchange gains and losses and impairment are recognised in
Statement of profit and toss. Othei net gains and losses are
recognised in OCI, On derecognition gains and losses
accumulated in OCI are reclassified to Statement of Profit
and Loss,
For equity investments, the Company makes selection on an
instrument-by-instrument bas^s to designate equity
investments as measured at FVOCJ. These selected
investments are measured at fair value with gains and losses
arising from changes In fair value recognised in other
comprehensive income and accumulated in the reserves, The
cumulative gam or 'oss Is not reclassified to Statement of profit
and loss on disposal of the investments. Tnese Investments in
equity are not neld for trading. Dividend income received on
such equity investments me recognised in Statement of Profit
and l oss Equity investments that are not designated as
measured at FVOCI are designated as measured at FVTPI.
and subsequent changes In fa.r value are recognised In
Statement ol Profit and Loss,
Financial assets at PVTPL are subsequently measured at fair
value Net gams and losses, including any Interest or dividend
income, ore recognised in Statement of Profit and Loss.
c.) De-recognition of financial assets
A financial asset (or, where applicable, a part of a financial
asset or part of a group of similar financial assets) Is primarily
derecognised (l.e iemoved from the company balance sneetl
when.
Tne MQhts to receive cash flows from the asset have
expired, Of
The Company has transferred Its- rights to receive cash Hows
from the asset or has assumed an obligation to pay the
received cash flows in lull without material delay to a third
party under a 'pass-through' arrangement, and either (a| the
company has transferred substantially all the nsks and
rewards of the asset, or (b) the company has neither
transience) nor retained substantially all the nsks and rewards
of the asset, but has transferred control of »ne asset
When the Company has transferied its rights to receive cosh
flows fiom an asset ot has enter eel into n pass-through
arrangement, It evaluates if and to what extent It has retained
the nsks end rewards of ownership. When u has neither
transferred nor retained substantially all of the Msks and
rewards of the- asset, nor transferred control of the asset, thc-
company continues to recognise the transferred asset to the
extent of tne company s continuing involvement In that case
the company also recognises an associated liability, The
transferred asset and the associated liability are measured an
a basis that reflects the rights and obligations *hat the
company has refamed.
Continuing involvement that takes the form of a guarameo
over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum
amount ot consideration that the company could be requueo
to repay
d.) Impairment of financial assets
the Company lecogmses impairmenl loss applying the
expected credit loss (ECL) model on the lioancia! assets
measured at amortised cost, debt instruments at FVTOCt,
lease receivables, trade receivables, other cont/BCtual right to
receive cash or other financial asset and financial guarantee
not designated as at FVTPl
The Company measures tne loss allowance for a financial
Instillment at an amount equal to the lifetime expected credit
losses if the credit risk on dial financial instrument has
increased significantly since Initial recognition, ll tne credit nsl
on a financial instiumen! has not increased significantly since
Initial recognition, the Company measures Ihe loss allowance
for that financial instrument at an amount equal to t2 months
expected credit losses
For trade receivables or any contractual ngnt to receive cash
or other financial assets that result from transactions that are
within the scope ot Ind AS 115, the Company always measures
the loss allowance ai an amount equal to lifetime expected
credit losses.
Further, for tne purpose of measuring lifetime expected credit
loss allowance for trade receivables, the Company applies
'simplified approach' permttled by Ind AS 109 Financial
instruments, This expected credit loss allowance is computed
based on a provision matrix which takes into account
historical credit loss experience and adjusted for forward
looking Information
In view of the fact that the entire trade receivables are from its
subsidiaries and ether group companies, there Is no lifetime
credit losses expected by the Company
Write offs - The qioss carrying amount of a financial asset is
wrltten-off (either partially 01 In full) to the extent that theie Ir.
no reasonable expectation of tecoveiing the asset In its
entirety oi a portion thereof This is generally ihe case wnen
the Company determines that the vendor does not. have
assets or souices ot income that could generate sufficient
cash Hows to repay the amounts sub|ect to the write-off and
when there »s no reasonable expectation of recovery horn the
collaterals held However financial assets that are vvrltten-ob
could still be subject to enforcement activities in order to
comply with the Company's procedures for recovery ot
amounts due
Presentation of allowance for ECL In the Balance Sheet -
Loss allowances tor ECL are deducted from the gross carrying
amount of financial assets measuied at amortised cost
Financial Liabilities
a.) Initial recognition and measurement
All financial liabilities are recognised initially at fair value and.
ln the case of loans and borrowings and payables, net of
directly attributable transaction costs.
b.) Subsequent measurement
The measurement of financial liabilities depends on their
classification, as described below;
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss Include
financial liabilities held fo- trading and financial liabilities
designated upon initial «ecognition as at fair value thiough
profit 01 loss. Financial liabilities are classified as held tot
trading If they are incurred tor the purpose of lepuirhasing In
Ihe near term This category also includes deilvatlve financial
instruments entered into by Ihe Company rhaf are not
designated as hedging instruments n hedge relationships as
defined by lnd-A5 109. Separated embedded derivatives are
also classified as held tor trading unless they are designated
as effective hedging instruments,
Gains or losses on liabilities held for trading are recognised in
the profit or loss.
Financial (labilities designated upon inrti3l recognition at fair
value through profit or loss are designated at the initial date of
recognition, and only if the criteria in Ind AS 109 are satisfied
Fo< liabilities designated as fvtpl, fair value gains/ losses
attributable to changes In own credit risk is recognized in OCI
These gains/ loss are not subsequently transferred to P&L
However, (he company may transfer Ihe cumulative gain or
(oss wiirnri equity AH other changes In fair value of such
liability are recognised in the statement of profit or loss. I he
Company nas not designated any financial llaoilily as at fair
value through profit and loss
Financial liabilities are subsequently carried at amortized cost
using the effective Interest method, except lor contingent
consideration recognized in i business combination which is
subsequently measured at fair value through profit and loss,
Foi trade and othei payables maturing within one year from
the Balance Sheet date, the carrying Amounts approximate fair
value aue io tne short maturity c«< inese instruments
Derecognition
A financial liability is derecog n sect when and only when Ihe
obligation under the liability Is discharged or cancelled or
expires. When an existing financial liability is replaced by
another trom the same lender on substantially different terms,
or me terms of an existing liability are substantially modified,
such an exchange or modification is treated as the
derecognition of the original liability and the recognition ot a
new liability The difference in the respective carrying amounts
is recognised In Ihe statement of profit oi loss
Offsetting of financial Instruments
Financial assets and financial liabilities are offset and the net
amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognised amounts and
there is ari intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.
Loans and borrowings
After initial recognition, interest-nearing loans and oorrowings
are subsequently measured at amortised cost using the
affective- -merest rato method. Gains and losses are
recognised In profit or loss when the liabilities are
derecognised as well as through the effective interest rate
amortisation process.
Amortised cost is calculated by taking into account any
discount or premium on acquisition nnd fees or costs that are
an integral pan of the effective interest rate Such amortisation
Is included as finance costs in ihe statement ot prolll and loss.
9. Leases
The Company has adofitecf Inc) AS 116 leases' with me date of
Initial application being April 1, 2019. The Company's lease
asset classes primarily consist of leases foi Premises The
Company, at the Inception ol a contract, assesses whether the
contract Is a lease or not lease. A contract is. or contains, a
lease II the contract conveys the nght to control the use ot an
Identifier) asset for a time In exchange for a consideration This
policy has been applied to contracts existing and entered Into
on or after April 1, 2018
The Company evaluates each contract or arrangement,
Whethei it qualifies as lease as defined under Ind A5 116.
The Company as a lessee
The Company assesses, whether the contract ts. or contains, a
lease. A contract Is. ot contains, a lease If the contract
involves- a) the use of an identified asset, b) tne right to obtain
substantially all the economic benefits non use of the
Identified asset, and c) me nght to direct the use ot the
identified asset
The Company at the inception of the lease contract
recognises a Rlght-of-Use [Roll) asset at cost ana a
corresponding lease liability, foi all lease arrangements in
which it is a lessee, except for leases with term of less than
twelve months (short term) and row-value assets (assets of less
man Rs 10 Lakhs >n value). Certain lease arrangements
Inciuoes the options to extend nr terminate ihe lease befora
the end ot the lease term ROD assets and lease liabilities
Includes these options wnen it is leasoriably certain that they
will be exeicised
I he cost ol the ROU assets comprises Ihe amount of the initial
measurement ol the lease llaollity, any lease payments made
at or before the inception date of the lease plus any initial
direct costs, less any lease incentives received Subsequently
the fight-of use assets Is measured at cost less any
accumulated depreciation and accumulated Impairment
losses, if any. The ROU assets is depreciated using the straight
line method from ihe commencement date ovei the snorter of
lease teuri or useful life of ROU assets
ROU assets are evaluated lor recoverability whenever events
or changes in circumstances Indicate that their carrying
amounts may not be recoverable For the purpose ot
impairmeni testing, the recoverable amount (i.e. the higher of
tine fair value less cost to sell and the value In-use) is
determined on an Individual asset basis unless the asset does
not generate cash flows thai are largely independent of those
Irom othm assets, In such cases, the tecoverable amount is
determined for the Casn Generating Unit (CGU) to which the
asset belongs
For 'ease liabilities al inception Ihe Company measures Ihe
(ease liability at hie present value of hie 'ease payments that
are not peto at that bale The lease payments are discounted
using the interest rate Implicit In the lease, it tnat rate Is icadlly
determined, if that rate Is not readily determined, the lease
payments are discounted using the Incremental borrowing
rate.
The Company recognises the amount of the re-measurement
of lease liability as an adjustment to the ROU assets. Where
Ihe carrying amount of the ROU assets is reduced to zero and
there is a further reduction in the measurement of the lease
liability, the Company recognises any remaining amount of the
remeasi-rement in the Statement ot Profit and Loss
For short-term and low value leases the Company recognises
the lease payments as an operating expense on a straight j rie
basis over Ihe lease term
The Company as a lessor
Lease Income from operating leases whore the Company is a
Ic-ssor Is recognised in income on a straight-line basis over
the lease term unless the receipts are structured to Increase
in line with expected general Inflation to compensate for
the expected inflationary cost increases. The respective
leased assets are included in the balance sheet based on
then nature
10. Finance Costs
Finance costs include interest expense computed by applying
the effective mfetest rate or. 'especflve financial instruments
measured at amortised cost. Financial Instruments include
debt and borrowing, Finance costs are charged to the
Statement of Ptofil and Loss
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