2. SIGNIFICANT ACCOUNTING POLICIES
2.1 General information and statement of compliance with Ind AS_These standalone financial statements
(‘financial statements’) of the Company have been prepared in accordance with the accounting principles
generally accepted in India, including the Indian Accounting Standards (‘Ind AS’) specified under Section 133 of
the Companies Act, 2013 (‘the Act’) and other relevant provisions of the Act. The Company has uniformly applied
the accounting policies during the periods presented. These financial statements were approved for issue by the
Board of Directors in the board meeting held.
2.2 Basis for preparation of Financial Statements
These financial statements have been prepared on the historical cost basis, except for certain financial
instruments which are measured at fair values at the end of each reporting period, as explained in the accounting
policies below. Historical cost is generally based on the fair value of the consideration given in exchange for
goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date.
2.3 Use of estimates
The financial statements have been prepared on going concern basis in accordance with accounting principles
generally accepted in India and also these financial statements are in conformity with the recognition and
measurement principles of Ind AS requires the management of the Company to make judgment, estimates and
assumptions that affect the reported amounts of revenue, expense, assets and liabilities, and the accompanying
disclosures and the disclosure relating to contingent liabilities as at the date of the financial presented.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimates are revised and future periods are affected. Any revision in
accounting estimates is recognized prospectively in the period of change and material revision, including its
impact on financial statements, is reported in the notes to accounts in the year of incorporation of revision.
2.4 Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable. Revenue from services
rendered is recognized based on agreements/arrangements with the customers as the service is performed in
proportion to the stage of completion of the transaction at the reporting date and the amount of revenue can be
measured reliably. Revenue is recognized only when evidence of an arrangement is obtained and the other
criteria to support revenue recognition are met, including the price is fixed or determinable, services have been
rendered and collectability of the resulting receivables is reasonably assured.Dividend income is recognized
when the right to receive payment is established. Interest income is recognized using effective rate of interest
method.
2.5 Employee benefitsEmployee benefits payable wholly within twelve months of receiving employee services are
classified as short-term employee benefits. These benefits include salaries and wages, performance incentives
and compensated absences which are expected to occur in next twelve months. The undiscounted amount of
short-term employee benefits to be paid in exchange for employee services is recognized as an expense as the
related service is rendered by employees.
2.6 Property, Plant and Equipment and Intangible Assets
Property, plant and equipment is stated at acquisition cost net of accumulated depreciation and accumulated
impairment losses, if any. Subsequent costs are included in the asset’s carrying amount or recognized as a
separate asset, as appropriate, only when it is probable that future economic benefits associated with the item
will flow and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the
Statement of Profit and Loss during the period in which they are incurred.
Gains or losses arising on retirement or disposal of property, plant and equipment are recognized in the
Statement of Profit and Loss.
Depreciation has been provided based on estimated useful life assigned to each asset in accordance with
Schedule II of the Companies Act, 2013.
Intangible assets purchased are measured at cost as at the date of acquisition, as applicable, less accumulated
amortisation and accumulated impairment, if any. Intangible assets consist of rights under licensing agreement
and software licences which are amortised over licence period which equates the economic useful life ranging
between 2-5 years on a straight-line basis over the period of its economic useful life.
Intangible assets with finite life are evaluated for recoverability whenever there is any indication that their
carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of
the 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 that are largely independent of those from other assets. In such cases, the
recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs.
2.7 Impairment of Assets
(i) Financial assets
The company recognizes loss allowances using Expected Credit Losses (ECL) model for the Financial Assets
which are not fair valued through Profit or Loss. Loss Allowance for trade receivables with no significant
financing component is measured at an amount equal to lifetime ECL. For all other Financial Assets, ECLs are
measured at an amount equal to 12-month ECL, unless there has been a significant increase in credit risk from
initial recognition in which case those are measured at Lifetime ECL. The amount of ECL that is required to
adjust the loss allowance at the reporting date to the amount that is required to be recognized is recognized as an
impairment Gain or Loss in the Statement of Profit or Loss.
(ii) Non-financial assets (Tangible and intangible assets)
An asset is deemed impairable when recoverable value is less than its carrying cost and the difference between
the two represents provisioning exigency. Recoverable value is the higher of the ‘Value in Use’ and ‘fair value as
reduced by cost of disposal’. Test of impairment of PPE, investment in subsidiaries / associates / joint venture
and goodwill are undertaken under Cash Generating Unit (CGU) concept. For Intangible Assets and Investment
Properties it is undertaken in asset specific context. Test of impairment of assets are generally undertaken
based on indication of impairment, if any, from external and internal sources of information outlined in para 12 of
Ind AS-36.
Non-financial assets other than goodwill suffered an impairment are reviewed for possible reversal of the
impairment at the end of each reporting period.
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