2. Material Accounting Policies

This note provides a list of the material accounting policies adopted in the preparation of these financial statements.
These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of preparation of financial statements

i) Statement of Compliance

These financial statements (the "Financial Statements") have been prepared in accordance with the Indian
Accounting Standard ("Ind AS"), under the historical cost convention on the accrual basis except for certain
financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (the "Act").
The Ind AS are prescribed under Section 133 of the Act, read with rule 3 of the Companies (Indian Accounting
Standards) Rules, 2015 and relevant amendment rules issued thereafter.

The Company has uniformly applied the accounting policies for all the periods presented in these financial
statements.

This note provides a list of the material accounting policies adopted in the preparation of these financial
statements. These policies have been consistently applied to all the years presented unless otherwise stated.

The financial statements have been prepared under the historical cost convention on accrual basis, except for
certain financial instruments and plan assets of defined benefit plans, which are measured at fair values at the
end of each reporting period, as explained in the accounting policies below:

• Financial instruments at fair value through profit and loss (FVTPL) that are measured at fair value,

• Net defined benefit (asset)/ liability - fair value of plan assets less present value of defined benefit
obligation.

ii) Functional and presentation currency

The financial statements are presented in Indian National Rupees (INR/?), which is the Company's functional
and presentation currency. All amounts are rounded to two decimal places to the nearest lakh, unless otherwise
stated.

iii) Use of estimates and judgements

The preparation of financial statements to be in conformity with the Ind AS requires the Management to make
estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent
liabilities) as on the date of the financial statements and the reported income and expenses during the reported
period. Management believes that the estimates used in the preparation of the financial statements are prudent
and reasonable. Actual results could differ from these estimates. The estimates and the underlying assumptions
are reviewed on an ongoing basis.

iv) Determination of estimated useful lives of Property, plant and equipment, and Intangible assets

Useful lives of property, plant and equipment are based on the life prescribed in Schedule II of the Act. In cases,
where the useful lives are different from that prescribed in Schedule II, they are based on nature of the asset,
the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated
technological changes, manufacturers' warranties and maintenance support. (Refer 'Note 7 & 8').

Intangible assets are stated at cost less accumulated amortisation and impairment losses, if any. Intangible
assets are amortised on a straight-line basis over their estimated useful lives, commencing from the date that
they are available for use. The estimated useful life of an identifiable intangible asset is based on various factors,
including the effects of obsolescence, market demand, competitive landscape, and other economic factors (such
as the stability of the industry, and known technological advances), and the expected level of maintenance
required to generate future economic benefits. The amortisation method and useful lives are reviewed at each
financial year end, and adjusted prospectively, if necessary.

v) Recognition of deferred tax assets and liabilities

Deferred tax assets and liabilities are recognised for the future tax consequences of temporary differences
between the carrying values of assets and liabilities and their respective tax bases, depreciation carry-forwards
and tax credits. Deferred tax assets are recognised to the extent that it is probable that future taxable income
will be available against which the deductible temporary differences and depreciation carry-forwards could be
utilised.

vi) Recognition and measurement of provisions and contingencies

The recognition and measurement of provisions are based on the assessment of the probability of an outflow
of resources, and on past experience and circumstances known at the reporting date. The actual outflow of
resources at a future date may therefore, vary from the amount included in other provisions.

vii) Fair value of financial instruments

The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date
under current market conditions (i.e., an exit price) regardless of whether that price is directly observable or
estimated using another valuation technique. For further details about the determination of fair value, please
see 'Note 28'.

2.2 Summary of material accounting policies

A. Revenue recognition

i. Gain/ (loss) on change in fair value of investments: The Company recognises unrealised gains or losses
arising from changes in the fair value of financial assets measured at Fair Value Through Profit and
Loss ("FVTPL") in the Statement of Profit and Loss., Further, realised gains or losses on derecognition
of financial assets classified as FVTPL or Fair Value through Other Comprehensive Income ("FVOCI")
are recognised in the Statement of Profit and Loss at the time of disposal. Investments are classified and
measured in accordance with Ind AS 109 - Financial Instruments. Equity investments held for trading
purposes are designated at FVTPL. Changes in the fair value of such investments are recognised in the
Statement of Profit and Loss under the head 'Net gain/(loss) on fair value changes'.

ii. Interest income: Interest income on financial assets is recognised on an accrual basis using the effective
interest rate ("EIR") method. Interest revenue is continued to be recognised at the original effective
interest rate.

iii. Dividend income: Dividend income is recognised in the Statement of Profit and Loss when the right to
receive the dividend is established.

B. Property, plant and equipment

Property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure
that is directly attributable to the acquisition of the items.

Basis of Recognition

The cost of an item of property, plant and equipment is recognised only when it is probable that future economic
benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.
Further, subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
Company and the cost of the item can be measured reliably. The carrying amount of any component accounted
for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit
or loss during the reporting period in which they are incurred.

Depreciation methods, estimated useful lives and residual value

Depreciation is provided on a pro-rata basis on the straight-line method over the estimated useful lives of assets,
based on internal assessment and independent technical evaluation done by the Management expert, which is
equal to life prescribed under Schedule II to the Companies Act, 2013.

The assets' useful lives are reviewed and adjusted if appropriate at the end of each reporting period.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying
amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amounts. These are
included in profit or loss within other income or other expenses.

Assets costing less than or equal to '5,000 (Rupees five thousand only) are fully depreciated from the date of
acquisition.

C. Intangible assets

Intangible assets acquired separately are measured on initial recognition at historical cost. Intangible assets
have a finite life and are subsequently carried at cost less any accumulated amortisation and accumulated
impairment losses.

Intangible assets with finite lives are amortised over the useful 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 the carrying value of another asset.

Gains or losses arising from the 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 and
Loss when the asset is derecognised.

D. Impairment of non-financial assets

The carrying values of assets/cash generating units at each balance sheet date are reviewed for impairment
if any indication of impairment exists. If the carrying amount of the assets exceeds the estimated recoverable
amount, an impairment is recognised for such excess amount.

The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by
discounting the future cash flows to their present value based on an appropriate discount factor.

When there is an indication that an impairment loss recognised for an asset (other than a revalued asset) in earlier
accounting periods that no longer exist or may have decreased, such reversal of impairment loss is recognised
in the Statement of Profit and Loss, to the extent the amount was previously charged to the Statement of Profit
and Loss. In case of revalued assets, such reversal is not recognised.

E. Employee benefits

i. Defined Contribution Plans: The Company makes payments to defined contribution plans such as
provident fund and employees' state insurance (wherever required). The Company has no further
payment obligations once the contributions have been paid. The contributions are accounted for as
defined contribution plans, and the contributions are recognised as employee benefit expenses when
they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a
reduction in future payments is available.

ii. Short-term obligations: All employee benefits payable wholly within twelve months of rendering the
service are classified as short-term employee benefits. These benefits include short-term compensated
absences such as paid annual leave, which are valued by an independent actuarial valuer at the end
of the year. Benefits such as salaries and wages, etc. and the expected cost of the bonus/ex-gratia are
recognised in the period in which the employee renders the related service.

iii. Post-employment obligation: The Company operates the following post-employment schemes:

• Defined benefit plans: The liability or asset recognised in the balance sheet in respect of defined
benefit gratuity plans is the present value of the defined benefit obligation at the end of the
reporting period less the fair value of plan assets. The defined benefit obligation is calculated
annually by actuaries using the projected unit credit method.

The net interest cost is calculated by applying the discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets. This cost is included in employee benefit
expense in the Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognised in the period in which they occur, directly in other comprehensive
income. They are included in retained earnings in the statement of changes in equity and in the
balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments
or curtailments are recognised immediately in profit or loss as past service cost.

• Accumulated compensated absences: The Company provides for liability of accumulated
compensated absences for eligible employees on the basis of an independent actuarial valuation
carried out at the end of the year and as may be required from time to time, using the projected
unit credit method. Actuarial gains and losses are recognised in the Statement of Profit and Loss
for the period in which they occur.

F. Taxes

i. Current Income Tax

The income tax expense or credit for the period is the tax payable on the current period's taxable income
based on the applicable income tax rate.

The current income tax is calculated on the basis of the tax rates and the tax laws enacted by the end of
the reporting period. The Management periodically evaluates positions taken in tax returns with respect
to situations in which applicable tax regulations are subject to interpretation. It establishes provisions
or makes reversals of provisions made in earlier years, where appropriate, on the basis of amounts
expected to be paid to / received from the tax authorities.

ii. Deferred Income Tax

Deferred tax is recognised for all the temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements, subject to the consideration of prudence
in respect of deferred tax assets. Deferred tax assets are recognised and carried forward only if it is
probable that sufficient future taxable amounts will be available against which such deferred tax assets
can be realised. Deferred tax assets and liabilities are measured using the tax rates and tax laws that
have been enacted or substantively enacted by the end of the reporting period and are expected to apply
when the related deferred income tax asset is realised or the deferred income tax liability is settled. The
carrying amount of deferred tax assets is reviewed at each Balance Sheet date and reduced\increased
to the extent that it is no longer probable or it becomes probable that sufficient taxable profit will be
available to allow all or part of the deferred tax asset to be utilised.

Current and deferred tax is recognised in the Statement of Profit or Loss, except to the extent that it
relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is
also recognised in Other Comprehensive Income or directly in Equity, respectively.

Deferred tax assets and liabilities are offset if a legally enforceable right exists to set off current tax assets
and liabilities and the deferred tax balances relate to the same taxable authority. Current tax assets and
liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle
on a net basis or to realise the asset and settle the liability simultaneously.

G. Leases (Company as a lessee)

The Company's lease asset primarily consists of leases for office premises. The Company assesses whether a
contract contains a lease, at the inception of a contract. A contract is, or contains, a lease if the contract conveys
the right to control the use of an identified asset for a period in exchange for consideration. To assess whether
a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the
contract involves the use of an identified asset, (ii) the Company has substantially all of the economic benefits
from the use of the asset through the period of the lease, and (iii) the Company has the right to direct the use of
the asset.

At the date of commencement of the lease, the Company recognises a right-of-use asset ("ROU") and a
corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of
twelve months or less (short-term leases) and low-value leases. For these short-term and low-value leases, the
Company recognises the lease payments as an operating expense on a straight-line basis over the term of the
lease.

H. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash on hand, amount at banks and other short-term

deposits with an original maturity of three months or less that are readily convertible to the known amount of
cash and, which are subject to an insignificant risk of changes in value.

I. Earnings Per Share ("EPS")

i. Basic earnings per share

Basic earnings per share is calculated by dividing:

• the net profit or loss for the period attributable to the equity shareholders of the Company

• by the weighted average number of equity shares outstanding during the period, adjusted for
bonus elements in equity shares issued during the year.

ii. Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share
to take into account the weighted average number of additional equity shares that would have been
outstanding assuming the conversion of all dilutive potential equity shares.

J. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.

i. Financial Assets

a) Classification

The Company classifies its financial assets as subsequently measured at either amortised cost or
fair value based on the business model for managing the financial assets and the contractual cash
flow characteristics of the financial assets. Investments are classified and measured in accordance
with Ind AS 109 - Financial Instruments.

b) Initial recognition and measurement

All financial assets are recognised initially at fair value. In case of financial assets not recorded at
fair value through profit or loss, transaction costs that are directly attributable to the acquisition
are adjusted to the fair value at initial recognition.

All regular way purchases or sales of financial assets are recognised and derecognised on a trade
date basis. Purchase or sale of the unquoted instrument is recognised on the closing date or as
and when the transaction is completed, as per the terms mentioned in the relevant transaction
agreement/document.

Regular way purchases or sales are of financial assets that require delivery of assets within the
time frame established by regulation or convention in the marketplace.

ii. Subsequent Measurement

a) Financial asset at fair value through Other Comprehensive Income ("FVOCI")

Financial assets with contractual cash flow characteristics that are solely payments of principal and
interest and held in a business model whose objective is achieved by both collecting contractual
cash flows and selling financial assets are classified to be measured at FVOCI. The impairment
losses, if any, are recognised through the profit and loss account. The loss allowance is recognised
in other comprehensive income and does not reduce the carrying value of the financial asset. On
derecognition, gains and losses accumulated in OCI are reclassified to the Statement of Profit and
Loss.

b) Financial asset at fair value through profit and loss ("FVTPL")

• Any financial instrument that does not meet the criteria for categorisation as at amortised
cost or as Fair Value through Other Comprehensive Income ("FVOCI"), is classified to be
measured at FVTPL.

• Financial instruments included within the FVTPL category are measured at fair value
with all changes recognised in the profit and loss account.

• All equity investments except for investments in subsidiary/associate/joint ventures are
measured at fair value. Equity instruments that are held by the company are classified as
at FVTPL.

iii. Financial Liabilities

All financial liabilities of the Company are short-term in nature. A financial liability is classified as at
fair value through profit or loss if it is held-for-trading or designated as such on initial recognition.
Such liabilities are measured at fair value, with changes recognised in the Statement of Profit and Loss.
All other financial liabilities are measured at amortised cost using the effective interest method. As at
the reporting date, the Company's financial liabilities comprise only trade payables and other financial
liabilities, all of which are measured at amortised cost. The Company does not have any financial
liabilities classified as at fair value through profit or loss.

iv. Valuation methodologies of financial instruments not measured at fair value - Short-term financial
assets and liabilities

For financial assets and liabilities with a short-term maturity (i.e., less than twelve months), the carrying
amounts, which are net of impairment, are a reasonable approximation of their fair value. Such
instruments include cash and cash equivalents, trade receivables, security deposits, and other short-term
financial assets. On the liabilities side, this includes trade payables and other financial liabilities without
specific maturities.

v. Derecognition of financial assets and financial liabilities

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is primarily derecognised 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

• the Company has transferred substantially all the risks and rewards of the asset but has transferred
control of the asset.

On derecognition of a financial asset, the difference between the carrying amount of the asset (or the
carrying amount allocated to the portion of the asset derecognised) and the sum of (i) the consideration
received (including any new asset obtained less any new liability assumed) and (ii) any cumulative gain
or loss that had been recognised in OCI is recognised in the Statement of Profit and Loss.

The Company derecognises financial liability when its contractual obligations are discharged, cancelled
or expired.

K. Offsetting

Financial assets and financial liabilities are offset and the net amount is reported in the financial statements only
if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle
on a net basis or to realise the assets and settle the liabilities simultaneously.

L. Measurement of fair values

The Company's accounting policies and disclosures require the measurement of fair values for financial
instruments such as investment in unquoted equity instruments, debentures, preference shares etc.

The Management uses its judgement in selecting an appropriate valuation technique for financial instruments
not quoted in an active market. Valuation techniques commonly used by market participants are applied.

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as
possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the
valuation techniques as follows:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability,
either directly (i.e., as prices) or indirectly (i.e. derived from prices).

• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable
inputs).

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value
hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value
hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period
during which the change has occurred.