3. Summary of Material Accounting Policies

3.1 Revenue Recognition from contracts with customers

The Company recognises revenue from contracts with customers (other
than financial assets to which Ind AS 109 'Financial instruments' is
applicable) based on a comprehensive assessment model as set out in
Ind AS 115 'Revenue from contracts with customers'. The Company
identifies contract(s) with a customer and its performance obligations
under the contract, determines the transaction price and its allocation
to the performance obligations in the contract and recognises revenue
only on satisfactory completion of performance obligations. Revenue is
measured at transaction price i.e. the amount of consideration to which
the Company expects to be entitled in exchange for transferring promised
goods or services to the customer, excluding amounts collected on behalf
of third parties. The Company consider the terms of the contract and its
customary business practices to determine the transaction price. The
Company applies the five-step approach for the recognition of revenue:

Step 1: Identify contract(s) with a customer: A contract is defined as an
agreement between two or more parties that creates enforceable rights
and obligations and sets out criteria for every contract that must be met.
Step 2: Identify performance obligations in the contract: A performance
obligation is a promise in a contract with a customer to transfer a good or
service to the customer.

Step 3: Determine the transaction price: The transaction price is the
amount of consideration to which the group expects to be entitled in
exchange for transferring promised goods or services to a customer,
excluding amounts collected on behalf of third parties.

Step 4: Allocate the transaction price to the performance obligations in the
contract: For a contract that has more than one performance obligation,
the group allocates the transaction price to each performance obligation
in an amount that depicts the amount of consideration to which the
group expects to be entitled in exchange for satisfying each performance
obligation.

Step 5: Recognise revenue when (or as) the group satisfies a performance
obligation.

A. Effective Interest Rate ('EIR') Method

Under Ind AS 109, interest income is recorded using the effective interest
rate method for all financial instruments measured at amortised cost.
The EIR is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial instrument or, when appropriate,
a shorter period, to the net carrying amount of the financial asset.

The EIR (and therefore, the amortised cost of the asset) is calculated
by taking into account any fees and costs that are an integral part of the
EIR. The Company recognises interest income using a rate of return that
represents the best estimate of a constant rate of return over the expected
life of the financial instrument.

If expectations regarding the cash flows on the financial asset are revised
for reasons other than credit risk, the adjustment is booked as a 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.

The Company calculates interest income by applying EIR to the gross
carrying amount of financial assets.

When a financial asset becomes credit impaired and is, therefore,
regarded as 'stage 3', the Company continues to calculate interest income
on the net amortized cost of the financial asset.

B. Dividend income

Dividend income is recognised when the Company's right to receive the
payment is established and it is probable that the economic benefits
associated with the dividend will flow to the Company and the amount
of the dividend can be measured reliably. This is generally when the
shareholders approve the dividend.

C. Other interest income

Other interest income is recognised on a time proportionate basis.

D. Fee income

Fees income such as legal inspection charges, are recognised on an accrual
basis in accordance with term of contract with the customer. Cheque
Bounce charges are recognised as income upon certainty of receipt.

E. Others

Penal charges and other operating income are recognized as income upon
certainty of receipt.

The Company recognises income on recoveries of financial assets written
off on realisation or when the right to receive the same without any
uncertainties of recovery is established

All other income is recognized on an accrual basis, when there is no
uncertainty in the ultimate realisation / collection.

3.2. Financial instrument - initial recognition

A. Date of recognition

Debt securities issued and borrowings (other than debt securities)
are initially recognised when the funds reach the Company. Loans are
recognised when funds are transferred to the customers account. All other
financial assets and financial liabilities are initially recognised when the
Company becomes a party to the contractual provisions of the instrument.

B. Initial measurement of financial instruments

The classification of financial instruments at initial recognition depends
on their contractual terms and the business model for managing the
instruments. Financial instruments are initially measured at their fair
value, except in the case of financial assets and financial liabilities
recorded at fair value through profit and loss (FVTPL), transaction costs
are added to, or subtracted from this amount.

C. Measurement categories of financial assets and liabilities

The Company classifies all of its financial assets based on the business
model for managing the assets and the asset's contractual terms,
measured at either:

i) . Amortised cost

ii) . FVOCI

iii) . FVTPL

D. Net gain on fair value changes:

The Company designates certain financial assets for subsequent
measurement at fair value through profit or loss (FVTPL) or fair value
through other comprehensive income (FVOCI). The Company recognises
gains on fair value change of financial assets measured at FVTPL and
realised gains on derecognition of financial asset measured at FVTPL and
FVOCI on net basis in profit or loss

3.3. Financial assets and liabilities

A. Financial assets
Business model assessment

The Company determines its business model at the level that best reflects
how it manages groups of financial assets to achieve its business objective.

The Company's business model is not assessed on an instrument-by¬
instrument basis, but at a higher level of aggregated portfolios and is
based on observable factors such as:

a) How the performance of the business model and the financial assets
held within that business model are evaluated and reported to the
Company's key management personnel.

b) The risks that affect the performance of the business model (and the
financial assets held within that business model) and, in particular, the
way those risks are managed.

c) How managers of the business are compensated (for example, whether
the compensation is based on the fair value of the assets managed or on
the contractual cash flows collected).

d) The expected frequency, value and timing of sales are also important
aspects of the Company's assessment.

The business model assessment is based on reasonably expected
scenarios without taking 'worst case' or 'stress case' scenarios into
account. If cash flows after initial recognition are realised in a way that
is different from the Company's original expectations, the Company does
not change the classification of the remaining financial assets held in that
business model, but incorporates such information when assessing newly
originated or newly purchased financial assets going forward.

SPPI test

As a second step of its classification process, the Company assesses the
contractual terms of financial assets to identify whether they meet SPPI
test.

'Principal' for the purpose of this test is defined as the fair value of the
financial asset at initial recognition and may change over the life of financial
asset (for example, if there are repayments of principal or amortisation of
the premium/ discount).

The most significant elements of interest within a lending arrangement
are typically the consideration for the time value of money and credit
risk. To make the SPPI assessment, the Company applies judgement and
considers relevant factors such as the period for which the interest rate
is set.

In contrast, contractual terms that introduce a more than the minimum
exposure to risks or volatility in the contractual cash flows that are
unrelated to a basic lending arrangement do not give rise to contractual
cash flows that are solely payments of principal and interest on the
amount outstanding. In such cases, the financial asset is required to be
measured at FVTPL.

Accordingly, financial assets are measured as follows based on the
existing business model:

(i) Financial assets carried at amortised cost (AC)

A financial asset is measured at amortised cost if it is held within a
business model whose objective is to hold the asset in order to collect
contractual cash flows and 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. Bank balances, Loans,
Trade receivables and other financial investments that meet the above
conditions are measured at amortised cost.

(ii) Financial assets at fair value through OCI (FVOCI)

Financial assets are measured at FVOCI when the instrument is held within
a business model, the objective of which is achieved by both collecting
contractual cash flows and selling financial assets and the contractual
terms of the financial asset meets the SPPI test.

(iii) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified as measured at amortised cost/
FVOCI are measured at FVTPL.

B. Financial liabilities

i) Initial recognition and measurement

All financial liabilities are initially recognized at fair value. Transaction
costs that are directly attributable to the acquisition or issue of financial
liability, which are not at fair value through profit or loss, are adjusted to
the fair value on initial recognition.

ii) Subsequent measurement

Financial liabilities are carried at amortized cost using the effective
interest method.

iii) Debt Securities and other borrowed funds

After initial measurement, debt issued and other borrowed funds are
subsequently measured at amortised cost. Amortised cost is calculated
by taking into account any discount or premium on issue funds, and costs
that are an integral part of the instrument.

The Company issues certain non-convertible debentures, the return of
which is linked to performance of specified indices market indicators over
the period of the debenture. Such debentures have a component of an
embedded derivative which is fair valued at a reporting date. The resultant
'net unrealised loss or gain' on the fair valuation of these embedded
derivatives is recognised in the statement of profit and loss. The debt
component of such debentures is measured at amortised cost using yield
to maturity basis.

iv) Embedded derivatives

An embedded derivative is a component of a hybrid instrument that also
includes a non-derivative host contract with the effect that some of the
cash flows of the combined instrument vary in a way similar to a standalone
derivative. An embedded derivative causes some or all of the cash flows
that otherwise would be required by the contract to be modified according
to a specified interest rate, financial instrument price, commodity price,
foreign exchange rate, index or prices or rates, credit rating or credit index,
or other variable, provided that, in the case of a non-financial variable, it
is not specific to a party to the contract. A derivative that is attached to
a financial instrument, but is contractually transferable independently of
that instrument, or has a different counterparty from that instrument, is
not an embedded derivative, but a separate financial instrument

Derivatives embedded in all other host contracts are accounted for
as separate derivatives and recorded at fair value if their economic
characteristics and risks are not closely related to those of the host
contracts and the host contracts are not held for trading or designated at
fair value though profit or loss. These embedded derivatives are measured
at fair value with changes in fair value recognised in profit or loss, unless
designated as effective hedging instruments.

3.4. Reclassification of financial assets and liabilities

The Company does not reclassify its financial assets subsequent to their
initial recognition. Financial liabilities are never reclassified. The Company
did not reclassify any of its significant financial assets or liabilities in the
year ended March 31, 2025 and March 31, 2024.

3.5. Derecognition of financial assets and liabilities

A. Derecognition of financial assets due to substantial modification of
terms and conditions

The Company derecognises a financial asset, such as a loan to a customer,
when the terms and conditions have been renegotiated to the extent that,
substantially, it becomes a new loan, with the difference recognised as
a derecognition gain or loss, to the extent that an impairment loss has
not already been recorded. The newly recognised loans are classified as
Stage 1 for ECL measurement purposes unless the new loan is deemed to
be Purchased or originated credit impaired (POCI)

When assessing whether or not to derecognise a loan to a customer,
amongst others, the Company considers the following factors:

• Change in currency of the loan

• Introduction of an equity feature

• Change in counterparty

• If the modification is such that the instrument would no longer meet
the SPPI criterion.

If the modification does not result in cash flows that are substantially
different, the modification does not result in derecognition. Based on the
change in cash flows discounted at the original EIR, the Company records
a modification gain or loss, to the extent that an impairment loss has not
already been recorded.

B. Derecognition of financial assets other than due to substantial
modification

i) Financial Assets

A financial asset (or, where applicable, a part of a financial asset or part of
a group of similar financial assets) is derecognised when the contractual
rights to the cash flows from the financial asset expires or it transfers
the rights to receive the contractual cash flows in a transaction in which
substantially all of the risks and rewards of ownership of the financial

asset are transferred or in which the Company neither transfers nor
retains substantially all of the risks and rewards of ownership and it does
not retain control of the financial asset.

On derecognition of a financial asset in its entirety, the difference between
the carrying amount (measured at the date of derecognition) and the
consideration received (including any new asset obtained less any new
liability assumed) is recognised in the statement of profit and loss.

When the Company has neither transferred nor retained substantially
all the risks and rewards and has retained control of the asset, the asset
continues to be recognised only to the extent of the Company's continuing
involvement, in which 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.

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 the Company
could be required to pay.

ii) Financial Liability

A financial liability is derecognised when the obligation under the liability
is discharged, cancelled or expires. Where 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 a derecognition of the original
liability and the recognition of a new liability. The difference between the
carrying value of the original financial liability and the consideration paid
is recognised in the statement of profit and loss.

3.6. Impairment of financial assets
A. Overview of ECL principles

In accordance with Ind AS 109, the Company uses ECL model, for
evaluating impairment of financial assets other than those measured at
fair value through profit and loss (FVTPL).The ECL allowance is based on
the credit losses expected to arise over the life of the asset (the lifetime
expected credit loss or LTECL), unless there has been no significant
increase in credit risk since origination, in which case, the allowance is
based on the 12 months' expected credit loss (12mECL). The 12mECL
is the portion of LTECLs that represent the ECLs that result from default
events on a financial instrument that are possible within the 12 months
after the reporting date.When estimating LTECLs for undrawn loan
commitments, the Company estimates the expected portion of the loan
commitment that will be drawn down over its expected life. The ECL is
then based on the present value of the expected shortfalls in cash flows
if the loan is drawn down.

Expected credit losses are measured through a loss allowance at an
amount equal to:

i) . The 12-months expected credit losses (expected credit losses that
result from those default events on the financial instrument that are
possible within 12 months after the reporting date); or

ii) . Full lifetime expected credit losses (expected credit losses that result
from all possible default events over the life of the financial instrument)
Both LTECLs and 12 months ECLs are calculated on collective basis.

Based on the above, the Company categorises its loans into Stage 1, Stage
2 and Stage 3, as described below:

Stage 1:

When loans are first recognised, the Company recognises an allowance
based on 12 months ECL. Stage 1 loans includes those loans where there
is no significant credit risk observed and also includes facilities where the
credit risk has been improved and the loan has been reclassified from
stage 2 or stage 3.

Stage 2:

When a loan has shown a significant increase in credit risk since
origination, the Company records an allowance for the life time ECL.
Stage 2 loans also includes facilities where the credit risk has improved
and the loan has been reclassified from stage 3.

Stage 3:

Loans considered credit impaired are the loans which are past due for
more than 90 days. The Company records an allowance for life time ECL.
For financial assets for which the Company has no reasonable expectations
of recovering either the entire outstanding amount, or a proportion
thereof, the gross carrying amount of the financial asset is reduced. This is
considered a (partial) derecognition of the financial asset.

B. Calculation of ECLs

The mechanics of ECL calculations are outlined below and the key
elements are, as follows:

Probability of Default (PD):

Probability of Default ("PD") is an estimate of the likelihood of default over
a given time horizon. A default may only happen at a certain time over the
assessed period, if the facility has not been previously derecognised and
is stilt in the portfolio.

Exposure at Default (EAD):

Exposure at Default ("EAD") is an estimate of the exposure at a future
default date, taking into account expected changes in the exposure after
the reporting date, including repayments of principal and interest, whether
scheduled by contract or otherwise, expected drawdowns on committed
facilities, and accrued interest from missed payments.

Loss Given Default (LGD):

Loss Given Default ("LGD") is an estimate of the loss arising in the case
where a default occurs at a given time. It is based on the difference
between the contractual cash flows due and those that the lender
would expect to receive, including from the realisation of any collateral.
It is usually expressed as a percentage of the EAD. The Company has
calculated PD, EAD and LGD to determine impairment loss on the portfolio
of loans and discounted at an approximation to the EIR. At every reporting
date, the above calculated PDs, EAD and LGDs are reviewed and changes
in the forward looking estimates are analysed.

Impairment losses and releases are accounted for and disclosed
separately from modification losses or gains that are accounted for as an
adjustment of the financial asset's gross carrying value.

The mechanics of the ECL method are summarised below:

Stage 1:

The 12 months ECL is calculated as the portion of LTECLs that represent
the ECLs that result from default events on a financial instrument that
are possible within the 12 months after the reporting date. The Company
calculates the 12 months ECL allowance based on the expectation of a
default occurring in the 12 months following the reporting date. These
expected 12-months default probabilities are applied to a forecast EAD
and multiplied by the expected LGD and discounted by an approximation
to the original EIR.

Stage 2:

When a loan has shown a significant increase in credit risk since origination,
the Company records an allowance for the LTECLs. The mechanics are
similar to those explained above, but PDs and LGDs are estimated over the
lifetime of the instrument. The expected cash shortfalls are discounted by
an approximation to the original EIR.

Significant increase in credit risk

The Company monitors all financial assets that are subject to the
impairment requirements to assess whether there has been a significant
increase in credit risk since initial recognition. If there has been a significant
increase in credit risk the Company will measure the loss allowance based
on lifetime ECLs rather than 12mECLs.

In assessing whether the credit risk on a financial instrument has
increased significantly since initial recognition, the Company compares
the risk of a default occurring on the financial instrument at the reporting
date based on the remaining maturity of the instrument with the risk of a
default occurring that was anticipated for the remaining maturity at the
current reporting date when the financial instrument was first recognised.
In making this assessment, the Company considers both quantitative
and qualitative information that is reasonable and supportable, including
historical experience and forward-looking information that is available
without undue cost or effort, based on the Company's historical experience
and expert credit assessment including forward looking information.

Stage 3:

For loans considered credit-impaired, the Company recognises the
lifetime expected credit losses for these loans. The method is similar to
that for Stage 2 assets, with the PD set at 100%.

Credit-impaired financial assets

A financial asset is 'credit-impaired' when one or more events that have
a detrimental impact on the estimated future cash flows of the financial
asset have occurred. Credit-impaired financial assets are referred to as
Stage 3 assets. Evidence of credit-impairment includes observable data
about the following events:

• significant financial difficulty of the borrower;

• a breach of contract such as a default or past due event;

• the lender of the borrower, for economic or contractual reasons relating
to the borrower's financial difficulty, having granted to the borrower a
concession that the lender would not otherwise consider;

• the disappearance of an active market for a security because of financial
difficulties; or

• the purchase of a financial asset at a deep discount that reflects the
incurred credit losses.

It may not be possible to identify a single discrete event—instead, the
combined effect of several events may have caused financial assets
to become credit-impaired. The Company assesses whether debt
instruments that are financial assets measured at amortised cost are
credit-impaired at each reporting date.

A loan is considered credit-impaired when a concession is granted to
the borrower due to a deterioration in the borrower's financial condition,
unless there is evidence that as a result of granting the concession the
risk of not receiving the contractual cash flows has reduced significantly
and there are no other indicators of impairment. For financial assets
where concessions are contemplated but not granted the asset is deemed
credit impaired when there is observable evidence of credit-impairment

including meeting the definition of default. The definition of default
includes unlikeliness to pay indicators and a back- stop if amounts are
overdue for 90 days or more.

Loan Commitments

When estimating LTECLs for undrawn loan commitments, the Company
estimates the expected portion of the loan commitment that will be drawn
down over its expected life. The ECL is then based on the present value of
the expected shortfalls in cash flows if the loan is drawn down, based on
a probability-weighting of the four scenarios. The expected cash shortfalls
are discounted at an approximation to the expected EIR on the loan.

C. Forward looking information

In its ECL models, the Company relies on a broad range of forward looking
macro parameters and estimated the impact on the default at a given
point of time.

The inputs and models used for calculating ECLs may not always capture
all characteristics of the market at the date of the financial statements. To
reflect this, qualitative adjustments or overlays are occasionally made as
temporary adjustments when such differences are significantly material.

3.7. Collateral repossessed

The Company generally does not use the assets repossessed for internal
operations. The underlying loans in respect of which collaterals have been
repossessed with an intention to realize by way of sale are considered
as Stage 3 assets and the ECL allowance is determined based on the
estimated net realisable value of the repossessed asset. Any surplus
funds are returned to the borrower and accordingly collateral repossessed
are not recorded on the balance sheet and not treated as assets held for
sale.

3.8. Write-offs

Financial assets are written off when there is a significant doubt on
recoverability in the medium term. If the amount to be written off is greater
than the accumulated loss allowance, the difference is first treated as an
addition to the allowance that is then applied against the gross carrying
amount. Any subsequent recoveries are credited to the statement of profit
and loss.

3.9. Determination of fair value

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, regardless of whether that price is directly
observable or estimated using another valuation technique. In estimating
the fair value of an asset or a liability, the Company has taken into account
the characteristics of the asset or liability if market participants would
take those characteristics into account when pricing the asset or liability
at the measurement date.

In addition, for financial reporting purposes, fair value measurements are
categorised into Level 1, 2, or 3 based on the degree to which the inputs
to the fair value measurements are observable and the significance of the
inputs to the fair value measurement in its entirety, which are described
as follows:

The Company uses valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair
value, maximising the use of relevant observable inputs and minimising
the use of unobservable inputs.

Level 1 financial instruments: Those where the inputs used in the valuation
are unadjusted quoted prices from active markets for identical assets or
liabilities that the Company has access to at the measurement date. The
Company considers markets as active only if there are sufficient trading
activities with regards to the volume and liquidity of the identical assets
or liabilities and when there are binding and exercisable price quotes
available on the balance sheet date;

Level 2 financial instruments: Those where the inputs that are used
for valuation and are significant, are derived from directly or indirectly
observable market data available over the entire period of the instrument's
life. Such inputs include quoted prices for similar assets or liabilities
in active markets, quoted prices for identical instruments in inactive
markets and observable inputs other than quoted prices such as interest
rates and yield curves, implied volatilities, and credit spreads In addition,
adjustments may be required for the condition or location of the asset or
the extent to which it relates to items that are comparable to the valued
instrument. However, if such adjustments are based on unobservable
inputs which are significant to the entire measurement, the Company will
classify the instruments as Level 3;

Level 3 financial instruments: Those that include one or more unobservable
input that is significant to the measurement as whole.

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. The
Company evaluates the levelling in the hierarchy at each reporting period
on an instrument-by-instrument basis and reclassifies instruments when
necessary based on the facts at the end of the reporting period.

3.10. Foreign currency transactions

Transactions in foreign currencies are translated into the functional
currency of the Company, at the exchange rates at the dates of the
transactions or an average rate if the average rate approximates the actual
rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are
translated into the functional currency at the exchange rate at the reporting
date. Non-monetary assets and liabilities that are measured at fair value in a
foreign currency are translated into the functional currency at the exchange
rate when the fair value was determined. Non-monetary assets and liabilities
that are measured based on historical cost in a foreign currency are translated
at the exchange rate at the date of the transaction. Exchange differences are
recognized in profit or loss.

3.11. Investment Property

Investment property represents property held to earn rentals or for
capital appreciation or both. Subsequent to initial recognition, investment
properties are stated at cost less accumulated depreciation and
accumulated impairment loss, if any

Though the Company measures investment property using cost based
measurement, the fair value of investment property is disclosed in
the notes. Fair values are determined based on an annual evaluation
performed by an external independent valuer applying valuation models.
Investment properties are derecognised either when they have been
disposed of or when they are permanently withdrawn from use and no

future economic benefit is expected from their disposal. The difference
between the net disposal proceeds and the carrying amount of the
asset is recognised in the statement of profit and loss in the period of
derecognition.

On transition to Ind AS (i.e. 1 April 2017), the Company has elected to
continue with the carrying value of Investment property measured as
per the previous GAAP and use that carrying value as the deemed cost of
Investment property.

3.11.1. Property, plant and equipment

i. Recognition and measurement

Items of property, plant and equipment are measured at cost, which
includes capitalised borrowing costs, less accumulated depreciation and
accumulated impairment losses, if any.

Cost of an item of property, plant and equipment comprises its purchase price,
including import duties and non-refundabie purchase taxes, after deducting
trade discounts and rebates, any directly attributable cost of bringing the item
to its working condition for its intended use and estimated costs of dismantling
and removing 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.

Any gain or loss on disposal of an item of property, plant and equipment is
recognised in profit or loss.

ii. Subsequent expenditure

Subsequent expenditure is capitalised only if it is probable that the
future economic benefits associated with the expenditure will flow to the
Company.

iii. Depreciation

Depreciation is calculated on cost of items of property, plant and
equipment less their estimated residual values over their estimated useful
lives using the written down value method, and is generally recognised in
the statement of profit and loss.

The Company follows estimated useful lives which are given under Part C
of the Schedule II of the Companies Act, 2013. The estimated useful lives
of items of property, plant and equipment are as follows:

the asset. In determining fair value less costs of disposal, recent market
transactions are taken in to account. If no such transactions can be
identified, an appropriate valuation model is used. These calculations
are corroborated by valuation multiples, quoted share prices for publicly
traded companies or other available fair value indicators.

Impairment losses of continuing operations, are recognised in the
statement of profit and loss.

For assets excluding goodwill, an assessment is made at each reporting
date to determine whether there is an indication that previously recognised
impairment losses no longer exist or have decreased. If such indication
exists, the Group Company estimates the asset's or CGU's recoverable
amount. A previously recognised impairment loss is reversed only if there
has been a change in the assumptions used to determine the asset's
recoverable amount since the last impairment loss was recognised. The
reversal is limited so that the carrying amount of the asset does not
exceed its recoverable amount, nor exceed the carrying amount that
would have been determined, net of depreciation, had no impairment loss
been recognised for the asset in prior years. Such reversal is recognised
in the statement of profit or loss unless the asset is carried at a revalued
amount, in which case, the reversal is treated as a revaluation increase.

3.14. Employee benefits
i. Post-employment benefits
Defined contribution plan

The Company's contribution to provident fund is considered as defined
contribution plan and is charged as an expense as they fall due based on
the amount of contribution required to be made and when the services are
rendered by the employees. The Company has no obligation, other than
the contribution payable to the provident fund.

Employees' State Insurance: The Company contributes to Employees
State Insurance Scheme and recognizes such contribution as an expense
in the Statement of Profit and Loss in the period when services are
rendered by the employees.

Defined benefit plans
Gratuity

"A defined benefit plan is a post-employment benefit plan other than a
defined contribution plan. The Company's net obligation in respect of
defined benefit plans is calculated separately for each plan by estimating
the amount of future benefit that employees have earned in the current
and prior periods.

The calculation of defined benefit obligation is performed annually by
a qualified actuary using the projected unit credit method. When the
calculation results in a potential asset for the Company, the recognised
asset is limited to the present value of economic benefits available in
the form of any future refunds from the plan or reductions in future
contributions to the plan ('the asset ceiling'),if any. In order to calculate
the present value of economic benefits, consideration is given to any
minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise
actuarial gains and losses and the effect of the asset ceiling (if any,
excluding interest), are recognised in OCI. The Company determines the
net interest expense (income) on the net defined benefit liability (asset)
for the period by applying the discount rate used to measure the defined
benefit obligation at the beginning of the annual period to the then-net
defined benefit liability (asset), taking into account any changes in the net

defined benefit liability (asset) during the period as a result of contributions
and benefit payments. Net interest expense and other expenses related to
defined benefit plans are recognised in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the
resulting change in benefit that relates to past service ('past service cost'
or 'past service gain') or the gain or loss on curtailment is recognised
immediately in profit or loss on the earlier of:

• The date of the plan amendment or curtailment, and

• The date that the Company recognises related restructuring costs

The Company recognises gains and losses on the settlement of a defined
benefit plan when the settlement occurs.

ii. Other long-term employee benefits
Compensated absences

The employees can carry forward a portion of the unutilised accrued
compensated absences and utilise it in future service periods or receive
cash compensation on termination of employment. Since the compensated
absences do not fall due wholly within twelve months after the end of
such period, the benefit is classified as a long-term employee benefit.
The Company records an obligation for such compensated absences
in the period in which the employee renders the services that increase
this entitlement. The obligation is measured on the basis of independent
actuarial valuation using the projected unit credit method.

iii. Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees are recognized
during the year when the employees render the service. These benefits
include performance incentive and compensated absences which are
expected to occur within twelve months after the end of the year in which
the employee renders the related service. The cost of such compensated
absences is accounted as under:

(a) in case of accumulated compensated absences, when employees
render the services that increase their entitlement of future compensated
absences; and

(b) in case of non-accumulating compensated absences, when the
absences occur.

iv. Share based payments

The grant date fair value of equity settled share based payment awards
granted to employees is recognised as an employee expense, with a
corresponding increase in equity, over the period that the employees
unconditionally become entitled to the awards. The amount recognised
as expense is based on the estimate of the number of awards for which
the related service and non-market vesting conditions are expected to be
met, such that the amount ultimately recognised as an expense is based
on the number of awards that do meet the related service and non-market
vesting conditions at the vesting date.