b. Summary of Significant Accounting Policies

The following are the significant accounting policies
applied by the company in preparing its financial
statements:

1. Current versus non-current classification

The Company presents assets and liabilities in
the Balance Sheet based on current/non-current
classification.

An asset is treated as current when it is:

• Expected to be realized or intended to be sold
or consumed in the normal operating cycle;

• Held primarily for the purpose of trading;

• Expected to be realized within twelve months
after the reporting period; or

• 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:

• It is expected to be settled in the normal
operating cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months
after the reporting period; or

• 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
realization in cash and cash equivalents. The
Company has identified twelve months as its
operating cycle.

2. Foreign currencies

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

Transactions and balances

Transactions in foreign currencies are initially
recorded by the Company at the functional currency
spot rate at the date the transaction first qualifies
for recognition.

Monetary assets and liabilities denominated in
foreign currencies are translated at the functional
currency spot rates of exchange at the reporting
date. Exchange differences arising on settlement
or translation of monetary items are recognized in
statement of profit or loss.

Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial
transactions. Non-monetary items measured at fair
value in foreign currency are translated using the
exchange rates at the date when the fair value is
determined. The gain or loss arising on translation
of non-monetary items measured at fair value is
treated in line with the recognition of the gain or
loss on the change in fair value of the item (i.e.,
translation differences on items whose fair value
gain or loss is recognized in OCI or statement of
profit or loss are also recognized in OCI or profit or
loss, respectively).

3. Fair value measurement

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,
maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is
measured or disclosed in the financial statements
are categorized within the fair value hierarchy, as
described below, 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 recognized in
the financial statements on a recurring basis,
the company determines whether transfers have
occurred between levels in the hierarchy by re¬
assessing categorization (based on the lowest
level input that is significant to the fair value
measurement as a whole) at the end of each
reporting period.

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 summarizes accounting policy for fair
value. Other fair value related disclosures are given
in the relevant notes.

• Significant accounting judgements, estimates
and assumptions

• Quantitative disclosures of fair value
measurement hierarchy

• Financial instruments (including those carried
at amortized cost)

4. Property, plant and equipment

Property, plant and equipment is stated at cost,
net of accumulated depreciation and accumulated
impairment losses, if any. Such cost includes the
cost of replacing part of the plant and equipment
and borrowing costs for long-term construction
projects if the recognition criteria are met. When
significant parts of Property, plant and equipment
are required to be replaced at intervals, the
Company recognizes such parts as individual
assets with specific useful lives and depreciates
them accordingly. All repair and maintenance costs
are recognized in statement of profit or loss as
incurred.

Capital work-in-progress comprises cost of fixed
assets that are not yet installed and ready for their
intended use at the balance sheet date.

Depreciation is calculated on a written down value
basis over the estimated useful lives of the assets
as follows:

• Plant and machinery - 5 to 10 years

• Furniture & fixtures - 10 years

• Office equipment's - 3 to 5 years

• Computer, servers & network - 3 to 6 years

An item of property, plant and equipment and any
significant part initially recognized is derecognized
upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain
or loss arising on de-recognition 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 derecognized.

5. Intangible Assets

Intangible assets acquired separately are
measured on initial recognition at cost. Following
initial recognition, intangible assets are carried
at cost less any accumulated amortization and
accumulated impairment losses. Cost include
acquisition and other incidental cost related to
acquiring the intangible asset.

Research costs are expensed as incurred. Intangible
development costs are capitalized as and when
technical and commercial feasibility of the asset
is demonstrated, future economic benefits are
probable. The costs which can be capitalized
include the salary and ESOP cost of employees that
are directly attributable to development of the asset
for its intended use.

The useful lives of intangible assets are assessed
as either finite or indefinite. Intangible assets with
finite lives are amortized over the useful economic
life and assessed for impairment whenever there
is an indication that the intangible asset may
be impaired. The amortization period and the
amortization 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 amortization period or
method, as appropriate, and are treated as changes
in accounting estimates. The amortization expense
on intangible assets with finite lives is recognized in
the statement of profit and loss.

Gains or losses arising from de-recognition of an
intangible asset are measured as the difference
between the net disposal proceeds and the
carrying amount of the asset and are recognized in
the Statement of Profit and Loss when the asset is
derecognized.

Amortization

Period of Amortization of Intangibles is calculated
as follows:

• Computer software generated/acquired-5
years

Intangible assets under development

Expenditure incurred on acquisition /construction
of intangible assets which are not ready for their
intended use at balance sheet date are disclosed
under Intangible assets under development. During
the period of development, the asset is tested for
impairment annually.

6. 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's lease asset classes primarily
comprise of lease for Vehicles. The Company
assesses whether a contract contains a lease, at
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 of time
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 use of the asset through the period
of the lease and (iii) the Company has the right to
direct the use of the asset. The Company applies a
single recognition and measurement approach for
all leases, except for short-term leases and leases
of low-value assets. For these short-term and low
value leases, the Company recognizes the lease
payments as an operating expense on a straight¬
line basis over the term of the lease. The Company
recognizes lease liabilities to make lease payments
and right-of-use assets representing the right of
use the underlying assets as below:

• Right of use assets

The Company recognizes right-of-use assets at the
commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted
for any re-measurement of lease liabilities. The
cost of right-of-use assets includes the amount
of lease liabilities recognized, 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 underlying
assets (i.e. 5-7 years) If ownership of the leased
asset transfers to the Company at the end of the
lease term or the cost reflects the exercise of a
purchase option, depreciation is calculated using
the estimated useful life of the asset. The right-of
use assets are also subject to impairment.

• Lease Liabilities

At the commencement date of the lease, the
Company recognizes 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 recognized
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 re-measured 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's lease liabilities are included in other
current and non-current financial liabilities.

• Short-term leases and leases of low-value
assets

The Company applies the short-term lease
recognition exemption to its short-term leases (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
that are considered to be low value. Lease payments
on short-term leases and leases of low-value assets
are recognized as expense on a straight-line basis
over the lease term. "Lease liability" and "Right
of Use" asset have been separately presented in
the Balance Sheet and lease payments have been
classified as financing cash flows.

7. Impairment of non-financial assets

Non-financial assets are evaluated for recoverability
whenever events or changes in circumstances
indicate that their carrying amounts may not be
recoverable. For the purpose of impairment testing,
the recoverable amount (i.e. the 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 generated unit (CGU) to which the asset
belongs.

If such assets are considered to be impaired, the
impairment to be recognized in the Statement
of Profit and Loss is measured by the amount by
which the carrying value of the assets exceeds the
estimated recoverable amount of the asset. An
impairment loss is reversed in the statement of profit
and loss if there has been a change in the estimates

used to determine the recoverable amount. The
carrying amount of the asset is increased to its
revised recoverable amount, provided that this
amount does not exceed the carrying amount
that would have been determined (net of any
accumulated amortization or depreciation) had no
impairment loss been recognized for the asset in
prior years.

8. Borrowing cost

Borrowing costs directly attributable to the
acquisition, construction or production of an asset
that necessarily takes a substantial period of time to
get ready for its intended use or sale are capitalized
as part of the cost of the asset. All other borrowing
costs are expensed in the period in which they
occur.

9. Revenue Recognition
Rendering of services

Revenue is recognized upon transfer of control
of promised services to customers in an amount
that reflects the consideration which the Company
expects to receive in exchange for those services.

Revenue from Services is recognized upfront at
the point in time when the service is delivered to
the customer. In cases where implementation and
/ or customization services rendered significantly
modifies or customizes, this service is recognized
proportionally over the period.

Revenue is measured based on the consideration
specified in a contract with the customer and
excludes amounts collected on behalf of customers.
The Company presents revenue net of discounts
and collection charges. Revenue also excludes
taxes collected from customers.

Revenue from subsidiaries and related parties are
recognized based on transaction price which is at
arm's length.

Contract assets are recognized when there is
excess of revenue earned over billings on contracts.
Contract assets are classified as unbilled revenue
(only act of invoicing is pending) when there is
unconditional right to receive cash, and only
passage of time is required, as per contractual
terms.

Excess billing over revenue ("contract liability")
is recognized when there is billing in excess of
revenues.

In accordance with Ind AS 37, the Company
recognizes an onerous contract provision when
the unavoidable costs of meeting the obligations
under a contract exceed the economic benefits to
be received.

Contracts are subject to modification to account for
changes in contract specification and requirements.
The Company reviews modification to contract in
conjunction with the original contract, basis which
the transaction price could be allocated to a new
performance obligation, or transaction price of
an existing obligation could undergo a change. In
the event transaction price is revised for existing
obligation, a cumulative adjustment is accounted
for.

The Company disaggregates revenue from contracts
with customers by offering and geography.

The Company exercises judgement in determining
whether the performance obligation is satisfied at a
point in time or over a period of time. The Company
considers indicators such as how customer
consumes benefits as services are rendered or who
controls the asset as it is being created or existence
of enforceable right to payment for performance to
date as per contract.

Interest income

For all financial instruments measured at amortized
cost, interest income is recorded using the effective
interest rate (EIR). The 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 or to
the amortized cost of a financial liability. 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.

10. Financial instruments - initial recognition and
subsequent measurement
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.

a. Financial assets

i. Initial recognition and measurement.

All financial assets, except investment in
subsidiaries and joint ventures, are recognized
initially at fair value plus, in the case of financial
assets not recorded at fair value through profit
or loss, transaction costs that are attributable
to the acquisition of the financial assets.

ii. Subsequent measurement

For purposes of subsequent measurement,
financial assets are classified in four categories:

• Debt instruments at amortized cost

• Debt instruments at fair value through
other comprehensive income (FVTOCI)

• Debt instruments at fair value through
profit or loss (FVTPL)

• Equity instruments measured at fair value
through other comprehensive income
(FVTOCI)

• Equity instruments measured at fair value
through statement of profit and loss
(FVTPL)

Debt instruments at amortized cost:

A debt instrument is measured at amortized
cost if both the following conditions are met:

• the asset is held within a business model
whose objective is to hold assets for
collecting contractual cash flows, and

• 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
amortized cost using the effective interest rate
(EIR) method. Amortized 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 amortization is included in other
income in the statement of profit and loss. The
losses arising from impairment are recognized
in the statement of profit and loss. This
category generally applies to trade and other
receivables.

Debt instruments at fair value through other
comprehensive income (FVTOCI)

A debt instrument is measured at fair value
through other comprehensive income if both of
the following criteria are met:

• the objective of the business model is
achieved both by collecting contractual
cash flows and selling the financial assets,
and

• the asset's contractual cash flows
represent SPPI.

Debt instruments included within the FVTOCI
category are measured initially as well as at
each reporting date at fair value. Fair value
movements are recognized in the other
comprehensive income (OCI). However,
interest income, impairment losses &
reversals and foreign exchange gain or loss
are recognized in the statement of profit and
loss. On derecognition of the asset, cumulative
gain or loss previously recognized in OCI is
reclassified from the equity to statement of
profit and loss. Interest earned whilst holding
FVTOCI debt instrument is reported as interest
income using the EIR method.

Debt instruments at fair value through profit
or loss (FVTPL)

FVTPL is a residual category for debt
instruments. Any debt instrument, which does
not meet the criteria for categorization as at
amortized cost or as FVTOCI, is classified as
at FVTPL.

In addition, the Company may elect to
designate a debt instrument, which otherwise
meets amortized cost or fair value through

other comprehensive income criteria, as at
fair value through profit or loss. However, such
election is allowed only if doing so reduces
or eliminates a measurement or recognition
inconsistency (referred to as 'accounting
mismatch'). The Company has not designated
any debt instrument as at FVTPL.

Debt instruments included within the FVTPL
category are measured at fair value with all
changes recognized in the Statement of profit
and loss.

Equity instruments:

All equity investments in scope of Ind-AS 109
are measured at fair value. Equity instruments
which are held for trading are classified as
at FVTPL. For all other equity instruments,
the Company may make an irrevocable
election to present in other comprehensive
income subsequent changes in the fair
value. The Company makes such election
on an instrument-by-instrument basis. The
classification is made on initial recognition and
is irrevocable.

If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value
changes on the instrument, excluding
dividends, are recognized in the OCI. There
is no recycling of the amounts from OCI to
P&L, even on sale of investment. However, the
Company may transfer the cumulative gain or
loss within equity.

Equity instruments included within the FVTPL
category are measured at fair value with all
changes recognized in the statement of profit
and loss.

Investment in subsidiaries and associates:

Investment in subsidiaries and associates
is carried at cost in the standalone financial
statements.

iii. Derecognition 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 derecognized (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
recognize the transferred asset to the extent
of the Company's continuing involvement. In
that case, the Company also recognizes 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 the lower of the original carrying
amount of the asset and the maximum amount
of consideration that the Company could be
required to repay.

iv. Impairment of financial assets

The Company recognizes loss allowances
using the expected credit loss (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,
expected credit losses are measured at an
amount equal to the 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
expected credit losses (or reversal) 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 profit or loss.

b. Financial Liabilities

i. Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings,
payables, as appropriate.

All financial liabilities are recognized initially
at fair value and, in the case of loans and
borrowings and payables, net of directly
attributable transaction costs.

The Company's financial liabilities include trade
and other payables, loans and borrowings.

ii. Subsequent measurement of financial
liabilities

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 for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or
loss. Financial liabilities are classified as held
for trading if they are incurred for the purpose
of repurchasing in the near term.

Gains or losses on liabilities held for trading are
recognized in the profit or loss.

Financial liabilities designated upon initial
recognition at fair value through profit or loss
are designated as such at the initial date of
recognition, and only if the criteria in Ind-AS
109 are satisfied. For liabilities designated as
FVTPL, fair value gains/ losses attributable to
changes in own credit risks are recognized in
OCI. These gains/ loss are not subsequently
transferred to P&L. However, the Company
may transfer the cumulative gain or loss within
equity. All other changes in fair value of such
liability are recognized in the statement of profit
and loss. The Company has not designated any
financial liability as at fair value through profit
and loss.

• Loans and Borrowings

After initial recognition, interest-bearing
borrowings are subsequently measured at
amortized cost using the EIR method. Gains
and losses are recognized in profit or loss
when the liabilities are derecognized as well as
through the EIR amortization process.

Amortized 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 amortization is
included as finance costs in the statement of
profit and loss.

This category generally applies to borrowings.

iii. Derecognition of financial liabilities

A financial liability is derecognized when the
obligation under the liability is discharged or
cancelled or expires.

When an existing financial liability is replaced by
another from the same lender on substantially
different terms, or the 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 of a new liability. The difference in
the respective carrying amounts is recognized
in the statement of profit and loss.

c. 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 recognized amounts and there is an intention to
settle on a net basis, to realize the assets and settle
the liabilities simultaneously.

11. Cash and cash equivalent

Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short¬
term deposits with an original maturity of three
months or less, which are subject to an insignificant
risk of changes in value.

For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash and short¬
term deposits, as defined above, net of outstanding
bank overdrafts as they are considered an integral
part of the Company's cash management.

12. Taxes

Tax expense comprises of current income tax and
deferred tax.

Current income 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.

Current income tax relating to items recognized
outside Statement of profit and loss is recognized
outside Statement of profit and loss (either in other
comprehensive income or equity). Current tax items
are recognized in correlation to the underlying
transaction either in other comprehensive income
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
establishes provisions where appropriate.

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 recognized for all taxable
temporary differences, except:

• 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;

• In respect of taxable temporary differences
associated with investments in subsidiaries
and interests in joint arrangements, 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 recognized for all
deductible temporary differences, the carry
forward of unused tax credits and any unused
tax losses. Deferred tax assets are recognized
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 utilized, except:

• 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;

• In respect of deductible temporary differences
associated with investments in subsidiaries,
associates and interests in joint arrangements,
deferred tax assets are recognized only to the
extent that it is probable that the temporary
differences will reverse in the foreseeable
future and taxable profit will be available
against which the temporary differences can
be utilized.

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 utilized. Unrecognized
deferred tax assets are re-assessed at each
reporting date and are recognized 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 realized 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 recognized outside
Statement of profit and loss is recognized outside
Statement of profit and loss. Deferred tax items
are recognized in correlation to the underlying
transaction either in other comprehensive income
or directly in equity.

Deferred tax assets and deferred tax liabilities are
offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and
the deferred taxes relate to the same taxable entity
and the same taxation authority.

13. Retirement and other employee benefits

a. Short Term Employee Benefits

All employee benefits payable within twelve months
of rendering the service are classified as short term
employee benefits. The undiscounted amount of
short term employee benefits expected to be paid
in exchange for the services rendered by employees
is recognized during the year.

b. Post-Employment Benefits
Defined benefit plan

Gratuity benefit scheme is a defined benefit plan.
The present value of the obligation under such
defined benefit plans is determined based on the
actuarial valuation using the Projected Unit Credit
Method as at the date of the Balance sheet reduced
by the fair value of any plan assets. The discount
rate used for determining the present value of the
obligation under defined benefit plan, are based on
the market yields on Government securities as at
the balance sheet date.

Re-measurements, 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
recognized immediately in the Balance Sheet with
a corresponding debit or credit to retained earnings
through OCI in the period in which they occur. Re¬
measurements are not reclassified to Statement of
Profit and Loss in subsequent periods.

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

• The date of the plan amendment or curtailment,
and

• The date that the Company recognizes related
restructuring costs

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

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

• Net interest expense or income

The Company has not invested in any fund for
meeting liability.

14. Employee stock option schemes - Share based
payments

Employees of the Company receive remuneration
in the form of share-based payments, whereby
employees render services as consideration for
equity instruments (equity-settled transactions).

Equity-settled transactions
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.

That cost is recognized, 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 recognized 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
statement of profit and loss expense or credit for
a period represents the movement in cumulative
expense recognized as at the beginning and end of
that period and is recognized in employee benefits
expense. No expense is recognized 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.

15. Earnings per share

Basic EPS amounts are calculated by dividing the
profit or loss for the year attributable to equity
shareholders for the period by the weighted average
number of equity shares outstanding during the
year.

Diluted EPS amounts are calculated by dividing the
profit or loss attributable to equity shareholders
for the period by the weighted average number of
equity shares outstanding during the year plus the
weighted average number of equity shares that
would be issued on conversion of all the dilutive
potential equity shares into equity shares. The
dilutive potential equity shares are adjusted for the
proceeds receivable had the equity shares been
actually issued at fair value (i.e. the average market
value of the outstanding equity shares). Dilutive
potential equity shares are deemed converted as of
the beginning of the period, unless issued at a later
date. Dilutive potential equity shares are determined
independently for each period presented.

16. Segment reporting

Based on "Management Approach" as defined
in Ind AS 108 -Operating Segments, the Chief
Operating Decision Maker evaluates the Company's
performance and allocates the resources based on
an analysis of various performance indicators by
business segments. Unallocable items includes
general corporate income and expense items which
are not allocated to any business segment.

Segment policies:

The Company prepares its segment information in
conformity with the accounting policies adopted for
preparing and presenting the financial statements
of the Company as a whole. Common allocable
costs are allocated to each segment on an
appropriate basis.

17. Dividend distribution

The Company recognizes a liability to make cash
distributions to equity holders of the Company when
the distribution is authorized and the distribution
is no longer at the discretion of the Company. As
per the Companies Act, 2013, a distribution is
authorized when it is approved by the shareholders.
A corresponding amount is recognized directly in
equity.