2 Basis of Preparation and significant accounting policies

a) Statement of Compliance

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention
on the accrual basis except for certain financial instruments which are measured at fair values, at the end of each reporting period as
explained in the accounting policies below, the provisions of the Companies Act, 2013 (‘the Act’) (to the extent notified). The Ind AS
are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and
Companies (Indian Accounting Standards) Amendment Rules, 2016 and relevant amendment rules issued there after.

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.

b) Basis of Measurement

The financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities measured at fair
value. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date, 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 takes 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.
Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis.

In addition, for financial reporting purposes, fair value measurements are categorized 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:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date;

Ý Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly
or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

c) Basis of Accounting

The Financial Statements have been prepared under the historical cost convention under accrual basis of accounting

d) Functional and Presentation Currency

The functional currency of the Company is the Indian Rupee. All the financial information have been presented in Indian Rupees (Rs)
except for share data or as stated otherwise.

e) Use ul'Estimates

In preparing these financial statements, Management has made judgments, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results could differ from those
estimates.

Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognized
prospectively.

Judgements are made in applying accounting policies that have the most significant effects on the amounts recognized in the financial
statements and the same is disclosed in the relevant notes to the financial statements.

Assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment are reviewed on an on¬
going basis and the same is disclosed in the relevant notes to the financial statements.

f) Revenue Recognition

Effective April 1, 2018, the Company adopted Ind AS 115 " Revenue from contracts with Customers'¹ , The policies mentioned below
with respect to dividend income and interest income are related to revenue recognition. The effect on adoption of Ind AS 115 was
insignificant.

The Company recognises income on accrual basis to the extent that it is probable that the economic benefits will flow to the Company
and the revenue can be reliably measured. However, where the ultimate collection of revenue lacks reasonable certainty, revenue
recognition is postponed

a) Dividend income from investments is recognised when the shareholder's right to receive payment has been established (provided
that it is probable that the economic benefits will flow to the company and the amount of income can be measured reliably).

b) Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the company and
the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding
and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected
life of the financial asset to that asset's net carrying amount on initial recognition.

c) On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the
Statement of Profit and Loss. Profit/loss on sale of investments is recognised on the trade date

g) Earnings per Share

The Company presents basic and diluted earnings per share (“EPS”) data for its equity shares. Basic EPS is calculated by dividing the
profit or loss attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
Diluted EPS is determined by adjusting the profit or loss attributable to equity shareholders and the weighted average number of equity
shares outstanding for the effects of all dilutive potential equity shares.

h) Taxation

(i) Current Tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the
statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never
taxable or deductible. The Company’s current tax is calculated using tax rates that have been enacted or substantively enacted by the
end of the reporting period.

(ii) Deferred Tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements
and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all
taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it
is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred
tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business
combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition,
deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or
the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the
Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and Deferred tax for the year

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive
income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly
in equity respectively.