2 Material accounting policies (including
basis of preparation)

(i) Statement of compliance

The financial statements have been prepared in
accordance with Indian Accounting Standards
(‘Ind AS’) as per the Companies (Indian
Accounting Standards) Rules, 2015, as amended
from time to time, notified under Section 133
of the Companies Act, 2013 ('Act') and other
relevant provisions 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 Company’s financial statements are
presented in Indian Rupees, which is also

its functional currency and all values are
rounded to the nearest lakh, except when
otherwise indicated.

The standalone financial statements for the
year ended 31 March 2025 are being approved
for issue in accordance with a resolution of the
directors on 21 May 2025.

(ii) Use of estimates and judgements

The preparation of the financial statements
in conformity with Ind AS requires that
management make judgments, estimates and
assumptions that affect the application of
accounting policies and the reported amounts
of assets, liabilities and disclosures of contingent
assets and liabilities as of the date of the financial
statements and the income and expense for the
reporting period. The actual results could differ
from these estimates. Estimates and underlying
assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are
recognised in the period in which the estimate
is revised and in any future periods affected.

The Company makes certain judgments and
estimates for valuation and impairment of
financial instruments, fair valuation of employee
stock options, useful life of property, plant and
equipment, deferred tax assets and retirement
benefit obligations. Management believes that
the estimates used in the preparation of the
financial statements are prudent and reasonable.

Judgements

Information about judgements made in applying
accounting policies that have effects on the
amounts recognised in the financial statements
are included in the notes:

- Note 7 - Valuation of investments

- Note 38 - Lease classification

Note 44 - Allocation of cost to subsidiary
in the form of shared services and
management support fee

Assumptions and estimation uncertainties

Information about assumptions and estimation
uncertainties that have risk resulting in a
material adjustment in the year ended 31 March
2025 is included in the following notes:

- Note 5 and 6 - Expected credit loss
allowance for trade receivables and
loans: key assumption in determining the
average loss rate

- Note 10 and 13 - Measurement of useful life
and residual value of property, plant and
equipment and intangible assets

- Note 33 - Recognition and measurement
of provisions and contingencies: key
assumptions about the likelihood and
magnitude of an outflow of resources

- Note 35 - Recognition of deferred tax
asset: availability of future taxable
profit against which tax losses carried
forward can be used

- Note 37 - Measurement of defined benefit
obligations: key actuarial assumptions

(iii) Basis of measurement

The financial statements have been prepared
on the historical cost basis except for the
following items:

(iv) Measurement of fair values

A number of the Company’s accounting policies
and disclosures require the measurement of
fair values, for both financial and non-financial
assets and liabilities.

Fair values are categorised into different levels
in a fair value hierarchy based on the inputs
used in the valuation techniques as follows:

- Level 1: The investments included in Level

1 of fair value hierarchy have been valued
using quoted prices for instruments in
an active market.

- Level 2: The investments included in Level

2 of fair value hierarchy have been valued
using valuation techniques based on
observable market data.

- Level 3: The investments included in Level

3 of fair value hierarchy have been valued
using the income approach and break-up
value to arrive at their fair value.

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

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

Further information about the assumptions
made in measuring fair values is included in the
following notes:

- Share-based payment arrangements

- Financial instruments

- Fair value of investment property

(v) Revenue and Other income

The Company is engaged in the business of
retail and institutional broking and distribution
of financial products. In accordance with Ind AS
115, Revenue from Contracts with Customers,
the revenue is accounted in the following
manner for each head:

a) Brokerage fee income

Brokerage income is recognised on the
trade date of transaction upon confirmation
of the transaction by the stock exchange.
The services are point in time in nature.
This business has been transferred by the
Company to its wholly owned subsidiary
Geojit Investments Limited. Also refer Note
43 (Transfer of broking and depository
business and discontinued operations)

b) Income from depository services and
portfolio management services

Income from depository services, penal
charges and portfolio management services
are recognised on the basis of agreements
entered into with clients and when the right
to receive the income is established. It is
recognised at the point in time for transaction
charges and others are recognised over the
period of service as applicable. Depository
services business has been transferred by
the Company to its wholly owned subsidiary
Geojit Investments Limited. Also refer Note
43 (Transfer of broking and depository
business and discontinued operations)

c) Income from distribution of financial
products

Commission income from financial
products distribution is recognised on
the basis of agreements entered into with
principals and when the right to receive
the income is established. The date of
the agreement is considered as point in
time when the performance obligation is
satisfied. In case of continuing services, the
same is recognised over a period of time.

d) Interest income

Interest income is recognised using the
effective interest rate method.

e) Dividend income and others

Dividend income is recognised in the
statement of profit or loss on the date that
the Company’s right to receive payment is
established, it is probable that the economic
benefits associated with the dividend
will flow to the entity and the amount of
dividend can be reliably measured. Shared
services cost is recognised based on
agreements entered into with the parties.
Marketing support income is recognised
as income when performance obligation is
satisfied as per the terms of agreement.

(vi) Property, plant and equipment and
intangible assets

Property, plant and equipment and intangible
assets are carried at cost less accumulated
depreciation / amortisation and impairment
losses, if any. The cost of property, plant and
equipment and intangible assets comprises its
purchase price net of any trade discounts and
rebates, any import duties and other taxes (other
than those subsequently recoverable from the tax
authorities), any directly attributable expenditure
on making the asset ready for its intended
use, other incidental expenses and interest on
borrowings attributable to acquisition of qualifying
property, plant and equipment up to the date the
asset is ready for its intended use. Subsequent
expenditure on property, plant and equipment
after its purchase / completion is capitalised
only if such expenditure results in an increase in
the future benefits from such asset beyond its
previously assessed standard of performance.

The cost of property, plant and equipment as at
1 April 2018, the Company’s date of transition
to Ind AS, was determined with reference

to its carrying value recognised as per the
previous GAAP (deemed cost), as at the date of
transition to Ind AS.

Property, plant and equipment retired from
active use and held for sale are stated at the
lower of their net book value and net realisable
value and are disclosed separately.

Advances paid towards the acquisition of
property, plant and equipment and intangible
assets, outstanding at each balance sheet date
are shown under advances for capital goods.
The cost of the property, plant and equipment
not ready for their intended use before such date
are disclosed under capital work-in-progress.

Depreciation and amortisation

Depreciable amount for assets is the cost
of an asset, less its estimated residual
value. Depreciation on property, plant and
equipment has been provided under the
straight-line method as per the useful life as
estimated by management.

Management estimates the useful life for the
tangible assets as under:

* For these class of assets, the Company has
assessed the useful life based on technical
advice, taking into account the nature of the
asset, the estimated usage of the asset, the
operating conditions of the asset, past history
of replacement, anticipated technological
changes, manufacturers warranties and
maintenance support, etc. which is different
from the useful lives as prescribed under Part C
of Schedule II of the Companies Act, 2013.

Depreciation methods, useful lives and residual
values are reviewed at each reporting date
and adjusted if appropriate. Based on the
technical evaluation and consequent advice, the
management believes that its estimates of useful
lives as given above best represent the period over
which management expects to use these assets.

Depreciation on additions/ (disposals) is provided
on a pro-rata basis ie. from/ (upto) the date on
which asset is ready for use/ (disposed off).

Improvements to leasehold premises are
amortised over the lease term or useful lives of
the assets, whichever is lower. If the premises
are vacated before the expiry of above term,
the un-amortised costs are fully written off in
the year of vacation.

Intangible assets are recognised where
it is probable that the future economic
benefit attributable to the assets will flow
to the Company and its cost can be reliably
measured. Expenditure incurred on acquisition
/ development of intangible assets which are
not put/ ready to use at the reporting date
is disclosed under intangible assets under
development. 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 profit or loss as incurred.

Development expenditure on software is
capitalised as part of the cost of the resulting
intangible asset only if the expenditure can
be measured reliably, the product or process
is technically and commercially feasible,
future economic benefits are probable and
the Company intends to and has sufficient
resources to complete development and to
use or sell the asset. Otherwise it is recognised
in the profit or loss as incurred. Subsequent
to initial recognition, the asset is measured at
cost less accumulated amortisation and any
accumulated impairment losses.

The cost of other intangible assets as at 1
April 2018, the Company’s date of transition
to Ind AS, was determined with reference
to its carrying value recognised as per the
previous GAAP (deemed cost), as at the date of
transition to Ind AS.

Computer softwares are amortised under
straight-line method over the estimated useful
life of 5 years or license period whichever is
lower. Client acquisition is amortised under
straight-line method over an estimated useful
life of 5 years. The estimated useful life of the
intangible assets and the amortisation period
are reviewed at the end of each financial year
and the amortisation method is revised to
reflect the changed pattern, if any.

Derecognition

The carrying amount of an item of property,
plant and equipment is derecognised on
disposal or when no future economic benefits
are expected from its use or disposal. The gain
or loss arising from the derecognition of an item
of property, plant and equipment is measured
as the difference between the net disposal
proceeds and the carrying amount of the item
and is recognised in the statement of profit and
loss when the item is derecognised.

(vii)Investment property

a) Recognition and measurement

Investment property is property held
either to earn rental income or for captital
appreciation or for both., but not for sale
in the ordinary course of business, use
in the production or supply of goods or
services or for administrative purposes.
Upon initial recognition, and investment
property is measured at cost, including
related transaction costs. Subsequent to
initial recognition, investment property
is measured at cost less accumulated
depreciation and accumulated impairment
losses, if any.

Investment property is derecognised either
when it has been disposed off or when it
is permenantly withdrawn from use and no
future economic benefit is expected from
its disposal. Any gain or loss on disposal
of investment property (calculated as the
difference between the net proceeds from
disposal and the carrying amount of the
item) is recognised in profit or loss.

b) 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 and the cost of
the item can be measured reliably.

c) Depreciation

Based on technical evaluation and
consequent advice, the management
believes a period of 40 years as representing
the best estmiate of the period over which
investment property (which is quite similar)
is expected to be used. Accordingly, the
Company depreciates investment property
over a period of 40 years on a straight-line
basis. The useful life estimate of 40 years
is different from the indicative useful life
of relevant type of buildings mentioned in
Part C of Schedule II to the Act, ie. 30 years.

d) Reclassification from/ to investment
property

Transfers to (or from) investment property
are made only when there is a change in use.
Transfers between investment property,
owner-occupied property and inventories
do not change the carrying amount of
the property transferred and they do
not change the cost of that property for
measurement or disclosure purposes.

e) Fair value disclosure

The fair values of investment property
is disclosed in the notes. Fair values is
determined by an independent valuer
who holds a recognised and relevant
professional qualification and has recent
experience in the location and category of
the investment property being valued.

f) Transition to Ind AS

The cost of investment property at 1 April
2018, the Company's date of transition to
Ind AS, was determined with reference to
its carrying value recognised as per the
previous GAAP (deemed cost), as at the
date of transition to Ind AS.

(viii)Investment in subsidiaries, associate and
joint venture

Investment in subsidiaries, associate and joint
venture is measured at cost less accumulated
impairment, if any.

(ix) Financial instruments

The Company recognises all the financial assets
and liabilities at its fair value on initial recognition;
In the case of financial assets not at fair value
through profit or loss, transaction costs that are
directly attributable to the acquisition or issue
of the financial asset are added to the fair value
on initial recognition. The financial assets are
accounted on a trade date basis.

Financial assets - Business model assessment

The Company makes an assessment of the
objective of the business model in which a
financial asset is held at a portfolio level because
this best reflects the way the business is managed
and information is provided to management.
The information considered includes:

- the stated policies and objectives for
the portfolio and the operation of those
policies in practice. These include whether
management's strategy focuses on earning
contractual interest income, maintaining
a particular interest rate profile, matching
the duration of the financial assets to
the duration of any related liabilities or
expected cash outflows or realising cash
flows through the sale of the assets;

- how the performance of the portfolio
is evaluated and reported to the
Company's management;

- the risks that affect the performance of the
business model (and the financial assets
held within that business model) and how
those risks are managed;

- how managers of the business are
compensated - e.g. whether compensation
is based on the fair value of the assets
managed or the contractual cash
flows collected; and

- the frequency, volume and timing of sales
of financial assets in prior periods, the
reasons for such sales and expectations
about future sales activity.

Transfers of financial assets to third parties
in transactions that do not qualify for
derecognition are not considered sales for
this purpose, consistent with the Company's
continuing recognition of the assets.

Financial assets that are held for trading or are
managed and whose performance is evaluated
on a fair value basis are measured at FVTPL.

Financial assets - Assessment whether
contractual cash flows are solely payments of
principal and interest

For the purposes of this assessment, 'principal'
is defined as the fair value of the financial asset
on initial recognition. 'Interest' is defined as
consideration for the time value of money and
for the credit risk associated with the principal
amount outstanding during a particular period
of time and for other basic lending risks and
costs (e.g. liquidity risk and administrative
costs), as well as a profit margin. In assessing
whether the contractual cash flows are
solely payments of principal and interest, the
Company considers the contractual terms of
the instrument. This includes assessing whether
the financial asset contains a contractual term
that could change the timing or amount of
contractual cash flows such that it would not
meet this condition. In making this assessment,
the Company considers:

- contingent events that would change the
amount or timing of cash flows;

- terms that may adjust the
contractual coupon rate, including
variable-rate features;

- prepayment and extension features; and

- terms that limit the Company's claim to
cash flows from specified assets (e.g. non¬
recourse features).

A prepayment feature is consistent with the
solely payments of principal and interest
criterion if the prepayment amount substantially
represents unpaid amounts of principal and
interest on the principal amount outstanding,
which may include reasonable compensation for
early termination of the contract. Additionally,
for a financial asset acquired at a discount
or premium to its contractual par amount, a
feature that permits or requires prepayment
at an amount that substantially represents
the contractual par amount plus accrued (but
unpaid) contractual interest (which may also
include reasonable compensation for early
termination) is treated as consistent with this

criterion if the fair value of the prepayment

feature is insignificant at initial recognition.

For subsequent measurement, financial assets

are categorised into:

a) Amortised cost: The Company classifies

the financial assets at amortised cost
if the contractual cash flows represent
solely payments of principal and interest
on the principal amount outstanding
and the assets are held under a business
model to collect contractual cash flows.
The gains and losses resulting from
fluctuations in fair value are not recognised
for financial assets classified in amortised
cost measurement category. These assets
are subsequently measured at amortised
cost using the effective interest rate
method. The amortised cost is reduced by
impairment losses. Interest income, foreign
exchange gains and losses and impairment
are recognised in statement of profit or
loss. Any gain or loss on derecognition is
recognised in statement of profit or loss.

b) Fair value through other comprehensive
income (FVOCI): The Company classifies
the financial assets as FVOCI if the
contractual cash flows represent solely
payments of principal and interest on the
principal amount outstanding and the
Company’s business model is achieved by
both collecting contractual cash flow and
selling financial assets. The impairment
gains or losses, foreign exchange gains or
losses and interest calculated using the
effective interest method are recognised
in profit or loss. Other net gains and losses
are recognised in OCI. On de-recognition,
the cumulative gain or loss previously
recognised in other comprehensive income
is reclassified from equity to profit or loss as
a reclassification adjustment.

c) Fair value through profit or loss (FVTPL):

The financial assets are classified as
FVTPL if these do not meet the criteria
for classifying at amortised cost or FVOCI.
Further, in certain cases to eliminate or
significantly reduce a measurement or
recognition inconsistency (accounting
mismatch), the Company irrevocably
designates certain financial instruments

at FVTPL at initial recognition. In case
of financial assets measured at FVTPL,
changes in fair value are recognised in profit
or loss. Net gains and losses including any
interest or dividend income are recognised
in statement of profit or loss.

Profit or loss on sale of investments is determined
on the basis of first-in-first-out (FIFO) basis.

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.

In order to show how fair values have been
derived, financial instruments are classified
based on a hierarchy of valuation techniques, as
summarised below:

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

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

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

Based on the Company’s business model for
managing the investments, the Company has

classified its investments at FVTPL. Investment in
subsidiaries is carried at deemed cost (previous
GAAP carrying amount) as per Ind AS 27.

Financial liabilities are carried at amortised cost
using the effective interest rate method. For
trade and other payables the carrying amount
approximates the fair value due to short
maturity of these instruments.

d) Impairment of financial assets: In accordance
with Ind AS 109, the Company applies expected
credit loss model (ECL) for measurement and
recognition of impairment loss. The Company
recognises lifetime expected losses for all
contract assets including loan and trade
receivables that do not constitute a financing
transaction. At each reporting date, the Company
assesses whether the loans have been impaired.
The Company is exposed to credit risk when the
customer defaults on his contractual obligations.
The Company has followed simplified approach
for measurement of expected credit loss in case
of receivables and loans.

Credit-impaired financial assets

At each reporting date, the Company assesses
whether financial assets carried at amortised
cost are credit-impaired. A financial asset is
‘credit impaired’ when one or more events that
have a detrimental impact on the estimated
cash flows of the financial asset have occurred.
Events that a financial asset is credit-impaired

includes the following observable data:¬
- Significant financial difficulty of the debtor;

- A breach of contract such as a default or
being more than 90 days past due (in case
of unsecured receivables);

- The restructuring of a loan or advance by
the Company on terms that the Company
would not consider otherwise;

- It is probable that the debtor will
enter bankruptcy or other financial
reorganization; or

- The disappearance of an active market for
a security because of financial difficulties;

e) Offsetting: Financial assets and financial
liabilities are offset and the net amount
presented in the balance sheet when, and only
when, the Company currently has a legally
enforceable right to set off the amounts and

it intends either to settle them on a net basis
or to realise the asset and settle the liability
simultaneously.

Derecognition

Financial assets

The Company derecognises a financial asset
when:

- the contractual rights to the cash flows
from the financial asset expire; or

- it transfers the rights to receive the
contractual cash flows in a transaction
in which either:

a) substantially all of the risks and
rewards of ownership of the financial
asset are transferred; or

b) 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.

The Company enters into transactions whereby
it transfers assets recognised on its balance
sheet but retains either all or substantially
all of the risks and rewards of the transferred
assets. In these cases, the transferred assets are
not derecognised.

Financial liabilities

The Company derecognises a financial liability
when its contractual obligations are discharged
or cancelled or expire. The Company also
derecognises a financial liability when its terms
are modified and the cash flows of the modified
liability are substantially different, in which case
a new financial liability based on the modified
terms is recognised at fair value.

On derecognition of a financial liability, the
difference between the carrying amount
extinguished and the consideration paid
(including any non-cash assets transferred or
liabilities assumed) is recognised in profit or loss.

Presentation of allowance for expected credit
loss (ECL) in the balance sheet

Loss allowances for financial assets measured
at amortised cost are deducted from the gross
carrying amount of the assets.

Write-off

The gross carrying amount of a financial asset is
written off when the Company has no reasonable
expectations of recovering a financial asset in

its entirety or a portion thereof. The Company
expects no significant recovery from the amount
written off. However, financial assets that are
written off could still be subject to enforcement
activities in order to comply with the Company’s
procedures for recovery of amounts due.

(x) Employee benefits

a) Short- term employee benefits

Short-term employee benefits are
expensed as the related service is
provided. An undiscounted liability is
recognised for the amount expected to be
paid if the Company has a present legal or
constructive obligation to pay this amount
as a result of past service provided by
the employee and the obligation can be
estimated reliably.

b) Provident fund

The Company's contribution to provident
fund scheme is considered as defined
contribution plan, and is charged as
an expense based on the amount of
contribution required to be made and when
services are rendered by the employees.

c) Gratuity

The Company pays gratuity, a defined
benefit plan, to its employees who retire or
resign after a minimum period of five years
of continuous service.

A defined benefit plan is a post
employment benefit plan other than a
defined contribution plan. The Company’s
net obligation in respect of the defined
benefit plan is calculated by estimating the
amount of future benefit that employee has
earned in exchange of their service in the
current and prior periods and discounted
back to the current valuation date to arrive
at the present value of the defined benefit
obligation. The defined benefit obligation
is deducted from the fair value of plan
assets, to arrive at the net asset / (liability),
which need to be provided for in the books
of accounts of the Company.

As required by the Ind AS 19, the discount
rate used to arrive at the present value of
the defined benefit obligations is based
on the Indian Government security yields
prevailing as at the balance sheet date that
have maturity date equivalent to the tenure
of the obligation.

The calculation is performed by a qualified
actuary using the projected unit credit
method. When the calculation results in a
net asset position, the recognised asset is
limited to the present value of economic
benefits available in form of reductions in
future contributions.

Remeasurements arising from defined
benefit plans comprises of actuarial gains
and losses on benefit obligations, the
return on plan assets in excess of what
has been estimated and the effect of asset
ceiling, if any, in case of over funded plans.
The Company recognises these items of
remeasurements in other comprehensive
income and all the other expenses related
to defined benefit plans as employee
benefit expenses in the statement of
profit and loss.

When the benefits of the plan are changed,
or when a plan is curtailed or settlement
occurs, the portion of the changed benefit
related to past service by employees, or the
gain or loss on curtailment or settlement, is
recognised immediately in the statement of
profit or loss when the plan amendment or
when a curtailment or settlement occurs.

d) 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. The
Company records an obligation for such
compensated absences in the period in
which the employee renders the services
that increase the entitlement. The obligation
is measured on the basis of independent
actuarial valuation using the projected unit
credit method. Actuarial losses/gains are
recognised in the statement of profit and
loss as and when they are incurred.

e) Employee stock option scheme

Equity settled share based payments to
employees are measured at the fair value of the
equity instruments 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 vesting period,
based on the Company’s estimate of equity
instruments that will eventually vest, with a
corresponding increase in equity.

(xi) Borrowing costs

Borrowing costs include interest expense as per
the effective interest rate (EIR) and other costs
incurred by the Company in connection with the
borrowing of funds. Borrowing costs directly
attributable to acquisition or construction of
those tangible fixed assets which necessarily
take a substantial period of time to get ready
for their intended use are capitalised. Other
borrowing costs are recognised as an expense
in the year in which they are incurred.

(xii) Foreign currency transactions and
translations

Foreign currency transactions are translated
into the functional currency using the exchange
rates at the dates of the transactions. Foreign
exchange gains and losses resulting from the
settlement of such transactions and from the
translation of monetary assets and liabilities
denominated in foreign currencies at year end
exchange rates are recognised in profit or loss.

Non-monetary items that are measured at fair
value in a foreign currency are translated using
the exchange rates at the date when the fair
value was determined. Translation differences
on assets and liabilities carried at fair value are
reported as part of the fair value gain or loss.
For example, translation differences on non¬
monetary assets and liabilities such as equity
instruments held at fair value through profit
or loss are recognised in profit or loss as part
of the fair value gain or loss and translation
differences on non-monetary assets such as
equity investments classified as FVOCI are
recognised in other comprehensive income.

(xiii) Leases

The Company evaluates if an arrangement
qualifies to be a lease as per the requirements
of Ind AS 116 "Lease" as notified by MCA.

a) Determining whether an arrangement
contains a lease

At inception of an arrangement, it is
determined whether the arrangement
is or contains a lease. At inception or
on reassessment of the arrangement
that contains a lease, the payments and
other consideration required by such an
arrangement are separated into those for
the lease and those for other elements on
the basis of their relative fair values.

The Company accounts for each lease
component within the contract as a lease
separately from non-lease components
of the contract and allocates the
consideration in the contract to each lease
component on the basis of the relative
stand-alone price of the lease component
and the aggregate stand-alone price of the
non-lease components.

b) Measurement of leases as a lessee

The Company recognises right-of-use
asset representing its right to use the
underlying asset for the lease term at the
lease commencement date. The cost of the
right-of-use asset measured at inception
shall comprise of the amount of the initial
measurement of the lease liability adjusted
for any lease payments made at or before
the commencement date less any lease
incentives received, plus any initial direct
costs incurred and an estimate of costs to
be incurred by the lessee in dismantling
and removing the underlying asset or
restoring the underlying asset or site on
which it is located. The right-of-use assets
is subsequently measured at cost less any
accumulated depreciation, accumulated
impairment losses, if any and adjusted for
any remeasurement of the lease liability.
The right-of-use assets is depreciated
using the straight-line method from the
commencement date over the shorter of
lease term or useful life of right-of-use asset.
The estimated useful lives of right-of-use
assets are determined on the same basis
as those of property, plant and equipment.
Right-of-use assets are tested for impairment
whenever there is any indication that their
carrying amounts may not be recoverable.
Impairment loss, if any, is recognised in the
statement of profit and loss.

The Company measures the lease liability
at the present value of the lease payments
that are not paid at the commencement
date of the lease. The lease payments
are discounted using the interest rate
implicit in the lease, if that rate can be
readily determined. If that rate cannot be
readily determined, the Company uses
incremental borrowing rate. The Company
determines its incremental borrowing
rate by obtaining interest rates from
various external financing sources and

Deferred tax liabilities are generally recognised
for all taxable temporary differences and
deferred tax assets are recognised, for all
deductible temporary differences, to the extent
it is probable that future taxable profits will be
available against which deductible temporary
differences can be utilised. Deferred tax is
measured at the tax rates that are expected
to be applied to the temporary differences
when they reverse, based on the laws that have
been enacted or substantively enacted by the
reporting date. Deferred tax assets are reviewed
at each reporting date and are reduced to the
extent that it is no longer probable that the
related tax benefit will be realised. The tax
effects of income tax losses, available for carry
forward, are recognised as deferred tax asset,
when it is probable that future taxable profits
will be available against which these losses
can be set-off.

Additional taxes that arise from the distribution
of dividends by the Company are recognised
directly in equity at the same time as the liability
to pay the related dividend is recognised.

Current and deferred tax are recognised as an
expense or income in the standalone statement
of profit and loss, except when they relate
to items credited or debited either in other
comprehensive income or directly in equity, in
which case the tax is also recognised in OCI or
directly in equity.

(xv) Cash and cash equivalents

Cash and cash equivalents for the purpose
of cash flow statement include cash in hand,
balances with the banks and short term
investments with an original maturity of three
months or less, and accrued interest thereon.

(xvi) Cash flow statement

Cash flows are reported using the indirect
method, whereby profit before tax is adjusted
for the effects of transactions of a non-cash
nature and any deferrals or accruals of past
or future cash receipts or payments. The cash
flows from regular revenue generating, investing
and financing activities of the Company
are segregated.

(xvii) Impairment of non financial assets

The Company assesses at the reporting date
whether there is an indication that an asset
may be impaired. If any indication exists, or
when annual impairment testing for an asset

is required, the Company estimates the asset’s
recoverable amount. An asset’s recoverable
amount is the higher of an asset’s or cash
generating unit’s ("CGU”) fair value less costs
of disposal and its value in use. The recoverable
amount is determined for an individual asset,
unless the asset does not generate cash inflows
that are largely independent of those from
other assets or groups of assets. Where the
carrying amount of an asset or CGU exceeds
its recoverable amount, the asset is considered
impaired and is written down to its recoverable
amount. In assessing value in use, the estimated
future cash flows are discounted to their present
value using a pre-tax discount rate that reflects
current market assessments of the time value
of money and the risks specific to the asset. In
determining fair value less costs of disposal,
recent market transactions are taken into
account, if available. If no such transactions can
be identified, an appropriate valuation model
is used. Impairment losses are recognised in
statement of profit and loss.