B. Summary of Material Accounting Policies
(a) Statement of compliance and basis of preparation and presentation of financial statements
These financial statements of the Company have been prepared in accordance with Indian Accounting Standards as per the
Companies {Indian Accounting Standards) Rules as amended and notified under section 13S of the Companies Act, 2013
{"the Act"), in conformity with the accounting principles generally accepted in India and other provision of the Act.
Accounting policies have been consistently applied except where a newly-issued accounting standard is initially adopted or
a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The Balance sheet
and Statement of Profit & Loss are prepared and presented in accordance with the format prescribed in the Division III to
Schedule III to the Act applicable for Non - Banking Finance Companies (NBFC).
(b) Functional and presentation currency
The financial statements are presented in Indian Rupees [INR or Rs], the functional currency of the Company and is rounded
off to the nearest lakhs except otherwise indicated.
(c) Basis of Measurement
The financial statements of the Company are prepared on the accrual basis of accounting and historical cost convention
except for the following material items that have been measured at fair value as required by the relevant Ind AS:
{i) Certain financial assets and liabilities are measured at Fair value (Refer note no. (h) and {!) below)
(d) Use of Estimates and Judgements
The preparation of the financial statements requires the Management to make judgments, estimates and assumptions that
affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting period. The recognition,
measurement, classification or disclosure of an item or information in the financial statements is made relying on these
estimates. The estimates and judgements used in the preparation of the financial statements are continuously evaluated by
the management and are based on historical experience and various other assumptions and factors (including expectations
of future events) that the management believes to be reasonable under the existing circumstances. Actual results may
differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods
In particular, information about significant areas of estimation, uncertainty and critical judgments In applying accounting
policies that have the most significant effect on the amounts recognised in the financial statements is included in the
following notes:
Defined employee benefit assets and liabilities
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial
valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the
future. These include the determination of the discount rate; future salary increases and mortality rates. Due to the
complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes In
these assumptions. All assumptions are reviewed annually.
Fair value measurement
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based
on quoted prices in active markets, their fair value is measured using various valuation techniques. The inputs to these
models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is
required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
Share based payment transactions
The fair value of employee stock options is measured using the Black-Scholes model. Measurement inputs include share
price on grant date, exercise price of the instrument, expected volatility {based on weighted average historical volatility),
expected life of the instrument (based on expected exercise behaviour), expected dividends, and the risk free interest rate
{based on government bonds).
(e) Property, plant and equipment (PPE)
Property, plant and equipment is stated at acquisition cost net of accumulated depreciation and accumulated impairment
losses, if any.
The cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-
refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable costs of bringing the asset
to its working condition for its intended use and estimated costs of dismantling and removing the item and restoring the
item and restoring the site on which it is located.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as
separate items (major components) of property, plant and equipment. Subsequent expenditure and subsequent costs are
included in the assets carrying amount or recognised as a separate asset, as appropriate only if it is probable that the future
economic benefits associated with the item will flow to the Company and that the cost of the item can be reliably measured.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the
Statement of profit and loss.
Property, plant and equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as
"Capital work-in-progress".
(f) Intangible assets
Intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any.
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to
which it relates. All other expenditure is recognised in statement of profit and loss as incurred
(g) Depreciation and Amortisation
Tangible assets
Depreciation has been provided on Written Down Value basis and in accordance with, Method and useful life prescribed in
Schedule II to the Companies Act, 2013.
The residual values, useful lives and method of depreciation of property, plant and equipment is reviewed at each financial
year end and adjusted prospectively, if appropriate.
Intangible assets
The useful lives of intangible assets are assessed as either finite or indefinite. Finite-life intangible assets are amortised on a
straight-line basis over the period of their expected useful lives. The amortisation period and the amortisation method for
finite-life intangible assets is reviewed at each financial year end and adjusted prospectively, if appropriate. For indefinite-
life intangible assets, the assessment of indefinite-life is reviewed annually to determine whether it continues, if not, it is
impaired or changed prospectively basis revised estimates.
(h) Financial assets - Initial recognition:
Financial assets are recognised when the Company becomes a party to the contractual provisions of the instruments.
Initial Recognition and Measurement- Financial Assets and Financial Liabilities
All Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair
value through profit or loss and ancillary costs related to borrowings) are added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in the
Statement of profit and loss.
Classification and Subsequent Measurement: Financial Assets
The Company classifies financial assets as subsequently measured at amortised cost, fair value through Other
Comprehensive Income ("FVTOCf) or fair value through profit or loss ("FVTPL") on the basis of following:
(a) the entity's business model for managing the financial assets and
(b) the contractual cash flow characteristics of thefinancial asset.
Amortised Cost:
A financial asset is classified and measured at amortised cost if both of the following conditions are met:
(i) the financial asset is held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows; and
(ii) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
Fair Value Through Other Comprehensive Income (FVTOCI):
A financial asset is classified and measured at FVTOCI if both of the following conditions are met:
(i) the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows
and selling financial assets; and
(ii) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
Fair Value Through Other Comprehensive Income (FVTOCI):
A financial asset is classified and measured at FVTOCI if both of the following conditions are met:
(i) the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows
and selling financial assets; and
(ii) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
Fair Value Through Profit or Loss (FVTPL):
A financial asset is classified and measured at FVTPL unless it is measured at amortised cost or at FVTOCI.
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending
on the classification of the financial assets.
Debt Instruments:
Investment in Debt instruments are generally accounted for as at fair value through the statement of profit and loss account
unless an irrevocable election has been made by management to account for at fair value through other comprehensive
income. Such classification is determined on an instrument-by-instrument basis. Amounts presented in other
comprehensive income for equity instruments are not subsequently transferred to statement of profit and loss.
Interests on these investments in debt instruments are recognised in Statement of profit and loss when the Company's
obligation to pay the Interest is established, the Interest does not represent a paying of part of cost of the investment and
the amount of interest can be measured reliably. Interest on Debentures recognised in Statement of profit and loss are
included in the 'Interest Income’ line item.
Equity Instruments:
Investment in equity instruments are generally accounted for as at fair value through the statement of profit and loss
account unless an irrevocable election has been made by management to account for at fair value through other
comprehensive income. Such classification is determined on ari instrument-by-instrument basis. Amounts presented in
other comprehensive income for equity instruments are not subsequently t ransferred to statement of profit and loss.
Dividends on these investments in equity instruments are recognised in Statement of Profit and Loss when the Company's
right to receive the dividends is established, it is probable that the economic benefits associated with the dividend will flow
to the entity, the dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be
measured reliably. Dividends recognised in Statement of Profit and Loss are included in the 'Dividend income' line item.
Impairment
The Company implies Expected Credit Losses (ECL) on financial assets that are measured at amortised cost and at FVOCI.
The credit loss is difference between all contractual cash flows that are due to an entity in accordance with the contract and
all the cash flows that the entity expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate.
This is assessed on an individual or collective basis after considering all reasonable and supportable including that which is
forward looking. However, the Company has maintained the minimum provisioning as per RBI NBFC-SBR Directions.
The Company's Loans and trade receivables or contract revenue receivables do not contain significant financing
component and loss allowance on trade receivables is measured at an amount equal to life time expected losses i.e.
expected cash shortfall, being simplified approach for recognition of impairment loss allowance.
Under simplified approach, the Company does not track changes In credit risk. Rather it recognises impairment loss
allowance based on the lifetime ECL at each reporting date right from its initial recognition. The Company uses a provision
matrix to determine Impairment loss allowance on the portfolio of trade receivables The provision matrix is based on its
historically observed default rates over the expected life of the trade receivable and is adjusted for forward looking
estimates. At every reporting date, the historical observed default rates are updated and changes in the forward looking
estimates are analysed.
For financial assets other than trade receivables, the Company recognises 12-months expected credit losses for all
originated or acquired financial assets if at the reporting date the credit risk of the financial asset has not increased
significantly since its initial recognition. The expected credit losses are measured as lifetime expected credit losses if the
credit risk on financial asset increases significantly since its initial recognition. If, in a subsequent period, credit quality of
the instrument improves such that there is no longer significant increase in credit risks since initial recognition, then the
Company reverts to recognising impairment loss allowance based on 12 months ECL. The impairment losses and reversals
are recognised in Statement of profit and loss. For equity instruments and financial assets measured at FVTPl, there is no
requirement of impairment testing
De-recognition
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or
it transfers rights to receive cash flows from an asset, it evaluates if and to what extent it has retained the risks and rewards
of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor
transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company's
continuing involvement.
In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are
measured on a basis that reflects the rights and obligations that the Company has retained.
Write-off
Loans and debt securities are written-off when the Company has no reasonable expectations of recovering the financial
asset {either In its entirety or a portion of it). This is the case when the Company determines that the borrower does not
have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. A
write-off constitutes a de-recognition event. The Company may apply enforcement activities to financial assets written-off.
Recoveries resulting from the Company's enforcement activities will result in impairment gams.
(i) Financial Liabilities
Initial Recognition and measurement
Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.
Financial liabilities are initially recognised at fair value net of transaction costs for all financial liabilities not carried at fair
value through profit or loss
The Company's financial liabilities includes trade and other payables, loans and borrowings including bank overdrafts.
Subsequent measurement
Financial liabilities measured at amortised cost are subsequently measured at using EIR method. Financial liabilities carried
at fair value through profit or loss are measured at fair value with all changes in fair value recognised in the Statement of
profit and loss.
Debts securities and other borrowings:
After initial recognition, interest bearing debts securities and other borrowings are subsequently measured at amortised
cost using EIR method. Gains and losses are recognised in Statement of profit and loss when the liabilities are derecognised
as well as through EIR amortisation process.
Financial Guarantee Contracts:
Financial guarantee contracts issued by the Company are those contracts that requires a payment to be made or to
reimburse the holder for a loss it Incurs because the specified debtors falls to make payment when due in accordance with
the term of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for
transaction costs that are directly attributable to the issuance of the guarantee.
De-recognition
A financial liability is derecognised 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 recognised in the
Statement of profit and 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 an intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.
(i) Fair Value Measurement
The Company measures financial instruments, such as, derivatives, investments at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place either:
(a) In the principal market for the asset or liability, or
(b) In the absence of a principal market, in the most advantageous market for the asset or liability.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the
fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as
a whole:
(i) Level 1 —Quoted (unadjusted) market prices in active markets for identical assets or liabilities
(ii) Level 2 —Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable.
(iii) Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting period.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.
(k) Cash & Cash Equivalents
Cash and Cash equivalents include cash and Cheque in hand, bank balances, demand deposits with banks and other short¬
term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value where original maturity is three months or less.
(I) Foreign exchange transactions & translations
Initial Recognition
Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Exchange
differences arising on foreign exchange transactions settled during the year are recognised In the Statement of profit and
loss of the year.
Measurement of Foreign Currency Items at the Balance Sheet Date
Foreign currency monetary items of the Company are restated at the closing exchange rates. Non monetary items are
recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these
transactions are charged to the Statement of profit and loss.
{m) Revenue Recognition:
Effective Interest rate method
Interest income is recognised in Statement of profit and loss using effective interest rate method for all financial
instruments at amortised cost, debt instrument measured at FVOCI and debt instrument designated at FVTPL. The
'effective interest rate' is the rate that exactly discounts estimated future cash payments or receipts through the expected
life of the financial instrument.
Calculation of effective interest includes transaction cost and fees that are an integral part of the contract. Transaction cost
include incremental cost that are directly attributable to the acquisition of financial asset.
If expectations regarding the cash flows on the financial asset are revised for reasons other than credit risk, the adjustment
is recorded as positive or negative adjustment to the carrying amount of the asset, in the balance sheet, with an increase or
reduction in interest income. The adjustment is subsequently amortised through interest income in the Statement of profit
and loss.
Interest
The Company calculates interest income related to financing business by applying the Effective Interest Rate Method (EIR)
to the gross carrying amount of financial asset other than credit-impaired assets.
When a financial asset becomes credit- Impaired, the Company calculates interest income by applying the effective interest
rate to the net amortised cost of the financial asset. If the financial assets cures and is no longer credit impaired, the
Company reverts to calculating interest income on a gross basis.
Subvention Income
Subvention income received at the inception of the loan contracts which is directly attributable to individual loan contracts
in respect of education loan is recognised in the Statement of profit and loss using the effective interest method over the
tenor of such loan contracts measured at amortised cost.
Fees and commission income
Fee based income and other financial charges are recognised when they become measurable and when it is probable to
expect their ultimate collection.
Commission and brokerage income earned for the services rendered are recognised as and when they are due.
Dividend
Dividend Income is recognised when right to receive the same is established and shown as part of investment and
dividend income.
Rental Income
Rental Income is recognised in the statement of profit and loss as per contractual rentals unless another systematic basis is
more representative of the time pattern.
Net gain or loss on fair value change
Any differences between the fair values of the financial assets classified as fair value through the profit or loss, held by the
Company on the balance sheet date is recognised as an unrealised gain/ loss in the statement of profit and loss. In cases
there is a net gain in aggregate, the same is recognised in "Net gains on fair value changes" under revenue from operations
and if there is a net loss the same is disclosed under "Expenses", in the statement of profit and loss.
Gain on sale of investment/Redemption of Mutual funds
On disposal of an Investment, the difference between the carrying amount and net disposal proceeds is charged or credited
to the profit and loss statement.
(n) Finance costs
Finance costs include interest expense computed by applying the effective interest rate on respective financial instruments
measured at amortised cost. Financial instruments include bank borrowing, intercorporate loans, non-convertable
debentures. Finance costs are charged to the Statement of profit and loss.
Interest expense on lease liabilities computed by applying the Company's weighted average incremental borrowing rate
has been included under finance costs.
(o) Fees and commission expenses
Fees and commission expenses represents sum paid / payable to Fintech patners for sourcing of Retail lending business and
other support services provided by them.
(p) Investment in subsidiaries
Investments in equity shares of subsidiaries are recorded at cost and reviewed for impairment at each reporting date.
Where an indication of impairment exists, the carrying amount of the investment is assessed and written down
immediately to its recoverable amount. On disposal of investments In subsidiaries, the difference between net disposal
proceeds and the carrying amounts are recognised in the Statement of profit and loss.
(q) Taxes on Income
Income tax comprises current and deferred tax. Income tax expense is recognised in the statement of profit and loss except
to the extent it relates to items directly recognised in equity or in other comprehensive income.
Current tax is based on taxable profit for the year. Taxable profit is different from accounting profit due to temporary
differences between accounting and tax treatments, and due to items that are never taxable or tax deductible. Tax
provisions are included in current liabilities Interest and penalties on tax liabilities are provided for in the tax charge The
Company offsets, the current tax assets and liabilities (on a year on year basis) where it has a legally enforceable right and
where it intends to settle such assets and liabilities on a net basis or to realise the assets and liabilities on net basis.
Deferred income tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are
recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their
carrying amount in financial statements. Deferred income tax asset are recognised to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax
credits and unused tax losses can be utilised. Deferred tax assets are riot recognised where it is more likely that the assets
will not be realised in the future.
The carrying amount of deferred income 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 income tax asset to be
utilised. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted at the reporting date.
Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.
(r) Borrowing Cost:
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of
qualifying assets are capitalised as a part of Cost of that assets, during the period till all the activities necessary to prepare
the Qualifying assets for its intended use or sale are complete during the period of time that is required to complete and
prepare the assets for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time
to get ready for their intended use or sale.
Other borrowing costs are recognised as an expense in the period in which they are incurred.
(s) Earnings per shares
Basic earnings per shares are calculated by dividing the net profit or loss after tax for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period For the purpose of
calculating diluted earnings per share, the net profit or loss for the period attributable to the equity shareholders and the
weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity
shares.
(t) Securities issue expenses
Expenses incurred in connection with fresh issue of Share capital are adjusted against Securities premium reserve.
(u) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker (CODM).
(v) Leases
The Company's lease asset classes primarily consist of leases for building for offices. The Company assesses whether a
contract is or 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:
(a) the contract involves the use of an identified asset
(b) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and
(c) the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognises a rlght-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 leases of low value assets. For these short term and leases of low value assets, the Company recognises the
lease payments as an operating expense on a straight-line basis over the term of the lease.
The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for
any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease
incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses, if any. Right of
use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and
useful life of the underlying asset.
The lease liability is initially measured at the present value of the future lease payments. The lease payments are
discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing
rates. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease
liability, reducing the carrying amount to reflect the lease payments made. A lease liability is remeasured upon the
occurrence of certain events such as a change in the lease term or a change in an index or rate used to determine lease
payments. The remeasurement normally also adjusts the leased assets.
Lease liability and ROU asset have been separately presented in the 8alance Sheet and lease payments have been
classified as financing cash flows.
(w) Employee Benefits:
Short term employee benefit
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. The
undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by
employees is recognised as an expense during the period. 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
Post-employment employee benefits
The Company has provided following post-employment plans:
(a) Defined benefit plans such as gratuity and
(b) Defined contribution plans such as Provident fund
a) Defined-benefit plan:
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plan is the present value of
defined benefit obligations at the end of the reporting period less fair value of plan assets. The defined benefit
obligations is calculated annually by actuaries through actuarial valuation using the projected unit credit method.
The Company recognises the following changes in the net defined benefit obligation as an expense in the Statement of
profit and loss:
(a) Service costs comprising current service costs, past-service costs, gains and losses on curtailment and non-routine
settlements; and
(b) Net interest expense or income
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and
fair value of plan assets. This cost is included in employee benefit expenses in the Statement of the profit and loss.
Re measurement comprising of actuarial gains and losses arising from
(a) Re-measurement of Actuarial (gains)/losses
(b) Return on plan assets, excluding amount recognised in effect of asset ceiling
(c) Re-measurement arising because of change in effect of asset ceiling
are recognised in the period in which they occur directly in Other comprehensive income. Re-measurement are not
reclassified to profit or loss in subsequent periods
Ind AS 19 requires the exercise of judgment in relation to various assumptions including future pay rises, inflation and
discount rates and employee and pensioner demographics. The Company determines the assumptions in conjunction
with its actuaries, and believes these assumptions to be in line with best practice, but the application of different
assumptions could have a significant effect on the amounts reflected in the income statement, other comprehensive
Income and balance sheet. There may be also interdependency between some of the assumptions
b) Defined-contribution plan:
Under defined contribution plans, provident fund, the Company pays pre-defined amounts to separate funds and does
not have any legal or informal obligation to pay additional sums. Defined Contribution plan comprise of contributions
to the employees' provident fund with the government, superannuation fund and certain state plans like Employees'
State Insurance and Employees' Pension Scheme. The Company’s payments to the defined contribution plans are
recognised as expenses during the period in which the employees perform the services that the payment covers.
c) Other long term emoloyee benifit:
The Company recognizes the provision for leave encashment based on the number of earned leaves available to
employees as at 1 he balance sheet date and the salary rates as applicable at the reporting date.
The liability is reviewed periodically and provided based on actual leave balances and employee entitlements. This Is
presented under short term or long-term provisions depending on the expected timing of settlement.
d) Employee stock options:
Equity-settled share-based payments to employees are recognised as an expense at the fair value of equity stock
options at the grant date. The fair value determined at the grant date of the equity-settled share based payments is
expensed on a straight-line basis over the graded vesting period, based on the Company's estimate of equity instruments
that will eventually vest, with a corresponding increase in equity (employee stock option reserve). At the end of each
reporting period, the Company revises its estimate of number of equity shares expected to vest. The impact of the revision
of the original estimates, if any, is recognised in the Statement of profit and loss such that cummulative expenses reflect the
revision estimate, with a corresponding adjustments to the employee stock option reserve.
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