3 MATERIAL ACCOUNTING INFORMATION POLICIES:

3.1 Revenue Recognition

The Company has recognised revenue pursuant to a
contract (other than a contract listed in paragraph 5
of Ind AS 115) only if the counterparty to the contract is
a customer. A customer is a party that has contracted
with an entity to obtain services that are an output of the
entity's ordinary activities in exchange for consideration.

i. Interest Income:

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 timely basis, by
reference to the principal outstanding and at
applicable effective interest rate (EIR). The effective
interest method is a method of calculating the
amortised cost of a financial asset and allocating
interest income over the relevant period. The effective
interest rate is the rate that exactly discounts
estimated future cash receipts (including all fees paid
or received that form an integral part of the effective
interest rate, transaction costs and other premiums or
discounts) through the expected life of the financial
asset, or, where appropriate, a shorter period, to the
net carrying amount on initial recognition.

ii. Dividend Income:

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

iii. Fees and Commission Income:

Fees and commission income includes fees
other than those that are an integral part of EIR.
The Company recognises the fees and commission
income in accordance with the terms of the relevant
contracts / agreements and when it is probable that
the Company will collect the consideration.

iv. Other Income:

Other Income represents income earned from the
activities incidental to the business and is recognised
when the right to receive the income is established as
per the terms of the contract.

3.2 Borrowing Costs

Borrowing costs include interest, commission/brokerage
on deposits and exchange differences arising from foreign
currency borrowings to the extent they are regarded as
adjustment to interest cost. Interest expenses are accrued
on a timely basis, by reference to the principal outstanding
and at the effective interest rate (EIR) applicable.
The effective interest method is a method of calculating
the amortised cost of a financial liability and allocating
interest expenses over the relevant period. The effective
interest rate is the rate that exactly discounts estimated
future cash payments (including all fees paid that form an
integral part of the effective interest rate, transaction costs
and other premiums or discounts) through the expected
life of the debt instrument, or, where appropriate, a shorter
period, to the net carrying amount on initial recognition.

3.3 Employee Benefits

Retirement benefit cost and termination benefits

Payments to defined contribution retirement benefit
plans are recognised as an expense when employees have
rendered service entitling them to the contributions.

For defined benefit retirement benefit plans, the cost of
providing benefits is determined using the Projected Unit
Credit Method, with actuarial valuations being carried
out at the end of each reporting date. Re-measurement,
comprising actuarial gains and losses, the effect of
the changes to the asset ceiling (if applicable) and the
return on plan assets (excluding interest), is reflected
immediately in the Balance Sheet with a charge or credit

recognised in other comprehensive income in the year in
which they occur. Re-measurement recognised in other
comprehensive income is reflected immediately in retained
earnings and will not be reclassified to profit or loss.
Past service cost is recognised in profit or loss in the year
of a plan amendment or when the Company recognises
corresponding restructuring cost whichever is earlier.
Net interest is calculated by applying the discount rate to
the net defined benefit liability or asset. Defined benefit
costs are categorised as follows:

• service cost (including current service cost,
past service cost, as well as gains and losses on
curtailments and settlements);

• net interest expense or income; and

• re-measurement

The Company presents the first two components of
defined benefit costs in profit or loss in the line item
'Employee benefits expenses'. Curtailment gains and
losses are accounted for as past service costs.

The retirement benefit obligation recognised in the
balance sheet represents the actual deficit or surplus in the
Company's defined benefit plans. Any surplus resulting
from this calculation is limited to the present value of any
economic benefits available in the form of refunds from
the plans or reductions in future contributions to the plans.

A liability for a termination benefit is recognised at the
earlier of when the Company can no longer withdraw the
offer of the termination benefit and when the Company
recognises any related restructuring costs.

Short-term and other long-term employee benefits

A liability is recognised for benefits to employees in
respect of wages and salaries, annual leave, sick leave
and short-term employee benefits in the year the related
service is rendered at the undiscounted amount of the
benefits expected to be paid in exchange for that service.

Liabilities recognised in respect of other long-term
employee benefits are measured at the present value
of the estimated future cash outflows expected to be
made by the Company in respect of services provided by
employees up to the reporting date.

3.4 Taxes

Income tax expense represents the sum of current tax
and deferred tax.

Current and Deferred Tax for the year

Current and Deferred tax are recognised in profit or loss,
except when they are relating to items that are recognised
in the 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. Deferred tax assets and liabilities are
offset when they relate to income taxes levied by the same
taxation authority and the relevant entity intends to settle
its current tax assets and liabilities on a net basis.

3.5 Financial Instruments

Financial assets and financial liabilities are recognized when
an entity becomes a party to the contractual provisions of
the instrument.

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 (FVTPL)) 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 Statement of
Profit and Loss.

A. Financial Assets

a) Recognition and initial measurement

The Company initially recognises loans and advances,
deposits and debt securities purchased on the date on
which they originate. Purchases and sale of financial
assets are recognised on the trade date, which is the
date on which the Company becomes a party to the
contractual provisions of the instrument.

All financial assets are recognised initially at fair value
except investment in subsidiaries and associates.
In the case of financial assets not recorded at FVTPL,
transaction costs that are directly attributable to its
acquisition of financial assets are included therein.

b) Classification of Financial Assets and Subsequent
Measurement

On initial recognition, a financial asset is classified to
be measured at -

- Amortised cost; or

- Fair Value through Other Comprehensive

Income (FVTOCI) - debt investment; or

- Fair Value through Other Comprehensive

Income (FVTOCI) - equity investment; or

- Fair Value through Profit or Loss (FVTPL)

A financial asset is measured at amortised cost if it
meets both of the following conditions and is not
designated at FVTPL:

• The asset is held within a business model whose
objective is to hold assets 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.

A debt instrument is classified as FVTOCI only if it
meets both of the following conditions and is not
recognised at FVTPL:

• The asset is held within a business model
whose objective is achieved by both
collecting contractual cash flows and selling
financial assets; 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.

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

All equity investments in scope of Ind AS 109 are
measured at fair value. Equity instruments which
are held for trading and contingent consideration
recognised by an acquirer in a business combination
to which Ind AS 103 applies are classified as at FVTPL.
For all other equity instruments, the Company may
make an irrevocable election to present in other
comprehensive income subsequent changes in the
fair value. The Company makes such election on an
instrument-by-instrument basis. The classification is
made on initial recognition and is irrevocable.

If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value changes on
the instrument, excluding dividends, are recognised
in the OCI. There is no recycling of the amounts from
OCI to Statement of Profit and Loss, even on sale of
investment. However, on sale/disposal the Company
may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL
category are measured at fair value with all changes
recognised in the Statement of Profit and Loss.

All other financial assets are classified as
measured at FVTPL.

In addition, on initial recognition, the Company may
irrevocably designate a financial asset that otherwise
meets the requirements to be measured at amortised
cost or at FVTOCI as at FVTPL if doing so eliminates
or significantly reduces accounting mismatch that
would otherwise arise.

Financial assets at FVTPL are measured at fair value
at the end of each reporting period, with any gains
and losses arising on re-measurement recognised
in Statement of Profit and Loss. The net gain or
loss recognised in Statement of Profit and Loss
incorporates any dividend or interest earned on the
financial asset and is included in the 'other income'
line item. Dividend on financial assets at FVTPL is
recognised when:

• The Company's right to receive the dividends
is established,

• It is probable that the economic benefits
associated with the dividends will flow
to the Company,

• The dividend does not represent a recovery of
part of cost of the investment and the amount
of dividend can be measured reliably.

c) Business Model Test

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

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

• 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;

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

At initial recognition of a financial asset, the Company
determines whether newly recognised financial
assets are part of an existing business model or
whether they reflect a new business model.

d) Solely Payments of Principal and Interest (“SPPI”)
on the principal amount outstanding

The Company assesses the contractual terms
of financial assets to identify whether they
meet the 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 the financial asset
(for example, if there are repayments of principal or
amortization 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.

Contractual terms that introduce exposure to risks
or volatility in the contractual cash flows that are
unrelated to a basic lending arrangement, such as
exposure to changes in equity prices or commodity
prices, do not give rise to contractual cash
flows that are SPPI.

e) Derecognition of Financial Assets

The Company derecognises a financial asset when
the contractual rights to the cash flows from the
financial asset expire, or when it transfers the financial
asset and substantially all the risks and rewards
of ownership of the asset to another party. If the
Company neither transfers nor retains substantially
all the risks and rewards of ownership and continues
to control the transferred asset, the Company
recognises its retained interest in the asset and an
associated liability for amounts it may have to pay.
If the Company retains substantially all the risks and
rewards of ownership of a transferred financial asset,
the Company continues to recognise the financial
asset and also recognises a collateralised borrowing
for the proceeds received.

On derecognition of a financial asset in its entirety,
the difference between the asset's carrying amount
and the sum of the consideration received and
receivable and the cumulative gain or loss that had
been recognised in other comprehensive income and
accumulated in equity is recognised in Statement
of Profit and Loss if such gain or loss would have
otherwise been recognised in Statement of Profit and
Loss on disposal of that financial asset.

On derecognition of a financial asset other than
in its entirety (e.g. when the Company retains an
option to repurchase part of a transferred asset), the
Company allocates the previous carrying amount
of the financial asset between the part it continues
to recognise under continuing involvement, and
the part it no longer recognises on the basis of the
relative fair values of those parts on the date of the
transfer. The difference between the carrying amount
allocated to the part that is no longer recognised
and the sum of the consideration received for the
part no longer recognised and any cumulative gain
or loss allocated to it that had been recognised in
other comprehensive income is recognised in profit
or loss if such gain or loss would have otherwise been
recognised in Statement of Profit and Loss on disposal
of that financial asset. A cumulative gain or loss that
had been recognised in other comprehensive income
is allocated between the part that continues to be
recognised and the part that is no longer recognised
on the basis of the relative fair values of those parts.

Modification of contractual cash flows

When the contractual cash flows of a financial asset
are renegotiated or otherwise modified, and the
renegotiation or modification does not result in the
derecognition of that financial asset, the Company
recalculates the gross carrying amount of the financial
asset and shall recognise a modification gain or loss
in profit or loss. The gross carrying amount of the
financial asset shall be recalculated as at the present
value of the renegotiated or modified contractual
cash flows that are discounted at the financial asset's
original effective interest rate (or credit-adjusted
effective interest rate for purchased or originated
credit-impaired financial assets) or, when applicable,
the revised effective interest rate. Any costs or fees
incurred adjust the carrying amount of the modified
financial asset and are amortised over the remaining
term of the modified financial asset.

f) Impairment of Financial Assets

The Company applies the expected credit loss (ECL)
model for recognising impairment loss on financial

assets. The Company applies a three-stage approach
for measuring ECL for the following categories of
financial assets that are not measured at Fair Value
through Profit or Loss:

• debt instruments measured at amortised

cost and Fair Value through Other

Comprehensive Income; and

• financial guarantee contracts.

No ECL is recognised on equity investments,

classified as FVTPL.

Expected credit losses is the weighted average of
credit losses with the respective risks of default
occurring as the weights. Credit loss is the difference
between all contractual cash flows that are due to the
Company in accordance with the contract and all the
cash flows that the Company expects to receive (i.e.
all cash shortfalls), discounted at the original effective
interest rate (or credit-adjusted effective interest
rate for purchased or originated credit-impaired
financial assets). The Company estimates cash flows
by considering all contractual terms of the financial
instrument (for example, prepayment, extension, call
and similar options) through the expected life of that
financial instrument.

Financial assets migrate through the following three
stages based on the change in credit risk since
initial recognition:

Stage 1: 12-months ECL

The Company assesses ECL on exposures where
there has not been a significant increase in credit
risk since initial recognition and that were not credit
impaired upon origination. For these exposures,
the Company recognises as a collective provision
the portion of the lifetime ECL associated with the
probability of default events occurring within the
next 12 months. The Company does not conduct
an individual assessment of exposures in Stage 1 as
there is no evidence of one or more events occurring
that would have a detrimental impact on estimated
future cash flows.

Stage 2: Lifetime ECL - not credit impaired

The Company collectively assesses ECL on exposures
where there has been a significant increase in credit
risk since initial recognition but are not credit impaired.
For these exposures, the Company recognises as a
collective provision, a lifetime ECL (i.e. reflecting the
remaining lifetime of the financial asset). Similar to

Stage 1, the Company does not conduct an individual
assessment on Stage 2 exposures as the increase in
credit risk is not, of itself, an event that could have a
detrimental impact on future cash flows.

Stage 3: Lifetime ECL - credit impaired

The Company identifies, both collectively and
individually, ECL on those exposures that are
assessed as credit impaired based on whether one
or more events, that have a detrimental impact
on the estimated future cash flows of that asset
have occurred. For exposures that have become
credit impaired, a lifetime ECL is recognised as a
collective or specific provision, and interest revenue
is calculated by applying the effective interest rate to
the amortised cost (net of provision) rather than the
gross carrying amount.

Determining the stage for impairment

At each reporting date, the Company assesses whether
there has been a significant increase in credit risk for
exposures since initial recognition by comparing the
risk of default occurring over the remaining expected
life from the reporting date and the date of initial
recognition. The Company considers reasonable and
supportable information that is relevant and available
without undue cost or effort for this purpose.
This includes quantitative and qualitative information
and also, forward-looking analysis.

An exposure will migrate through the ECL stages
as asset quality deteriorates. If, in a subsequent
period, asset quality improves and also reverses any
previously assessed significant increase in credit risk
since origination, then the provision for impairment
losses reverts from lifetime ECL to 12-months ECL.
Exposures that have not deteriorated significantly
since origination are considered to have a low
credit risk. The provision for impairment losses for
these financial assets is based on a 12-months ECL.
When an asset is uncollectible, it is written off against
the related provision. Such assets are written off after
all the necessary procedures have been completed
and the amount of the loss has been determined.
Subsequent recoveries of amounts previously
written off reduce the amount of the expense in the
income statement.

The Company assesses whether the credit risk on an
exposure has increased significantly on an individual
or collective basis. For the purposes of a collective
evaluation of impairment, financial instruments
are grouped on the basis of shared credit risk
characteristics, taking into account instrument type,
class of borrowers, credit risk ratings, date of initial
recognition, remaining term to maturity, industry and
other relevant factors.

Measurement of ECL

ECL are derived from unbiased and
probability-weighted estimates of expected loss, and
are measured as follows:

• Financial assets that are not credit-impaired
at the reporting date: as the present value
of all cash shortfalls over the expected life of
the financial asset discounted by the effective
interest rate. The cash shortfall is the difference
between the cash flows due to the Company
in accordance with the contract and the cash
flows that the Company expects to receive.
If the credit risk on a financial instrument
has not increased significantly since initial
recognition, the Company measures the loss
allowance for that financial instrument at an
amount equal to 12-month expected credit
losses. 12-month expected credit losses is a
portion of the life-time expected credit losses
and represents the lifetime cash shortfalls
that will result if default occurs within the 12
months after the reporting date and thus, are
not cash shortfalls that are predicted over the
next 12 months.

• Financial assets that are credit-impaired at the
reporting date: as the difference between the
gross carrying amount and the present value of
estimated future cash flows discounted by the
effective interest rate.

For further details on how the Company
calculates ECL including the use of forward
looking information, refer to the Credit quality
of financial assets in Note 35.4 Financial
risk management.

ECL is recognised using a provision for
impairment losses in Statement of Profit and
Loss. In the case of debt instruments measured
at Fair Value through Other Comprehensive
Income, the measurement of ECL is based
on the three-stage approach as applied to
financial assets at amortised cost. The Company
recognises the provision charge in profit and
loss, with the corresponding amount recognised
in other comprehensive income, with no

reduction in the carrying amount of the asset in
the Balance Sheet.

Further, for the purpose of measuring lifetime
expected credit loss allowance for trade
receivables, the Company has used a practical
expedient as permitted under Ind AS 109.
This expected credit loss is computed based
on a provision matrix which takes into account
historical credit loss experience and adjusted for
forward-looking information.

g) Effective interest method

The effective interest method is a method of
calculating the amortised cost of a debt instrument
and allocating interest income over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
(including all fees and points paid or received that
form an integral part of the effective interest rate,
transaction costs and other premiums or discounts)
through the expected life of the debt instrument,
or, where appropriate, a shorter period, to the net
carrying amount on initial recognition.

I ncome is recognised on an effective interest basis
for debt instruments other than those financial
assets classified as at FVTPL and Interest income is
recognised in Statement of Profit and Loss.

h) Reclassification of Financial Assets

The Company determines classification of financial
assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial
assets which are equity instruments and financial
liabilities. For financial assets which are debt
instruments, a reclassification is made only if there is
a change in the business model for managing those
assets. Changes to the business model are expected
to be infrequent. The Company's management
determines change in the business model as a result
of external or internal changes which are significant
to the Company's operations. Such changes are
evident to external parties. A change in the business
model occurs when the Company either begins or
ceases to perform an activity that is significant to
its operations. If the Company reclassifies financial
assets, it applies the reclassification prospectively
from the reclassification date which is the first day
of the immediately next reporting period following
the change in business model. The Company does
not restate any previously recognised gains, losses
(including impairment gains or losses) or interest.

B. Financial Liabilities and Equity Instruments

a) Classification as Debt or Equity

Debt and equity instruments issued by a company
are classified as either financial liabilities or as equity
in accordance with the substance of the contractual
arrangements and the definitions of a financial liability and
an equity instrument.

b) Equity Instruments

An equity instrument is any contract that evidences
a residual interest in the assets of the Company after
deducting all of its liabilities. Equity instruments issued by
the Company are recognised at the proceeds received, net
of directly attributable transaction costs.

c) Financial Liabilities

Financial liabilities are classified as measured at amortised
cost or 'FVTPL'.

A Financial Liability is classified as at FVTPL if it is classified
as held-for-trading or it is a derivative (that does not meet
hedge accounting requirements) or it is designated as
such on initial recognition.

A financial liability is classified as held for trading if:

• It has been incurred principally for the purpose of
repurchasing it in the near term; or

• on initial recognition it is part of a portfolio of identified
financial instruments that the Company manages
together and has a recent actual pattern of short-term
profit-taking; or

• i t is a derivative that is not designated and effective as a
hedging instrument.

A financial liability other than a financial liability held for trading
may be designated as at FVTPL upon initial recognition if:

• such designation eliminates or significantly reduces a
measurement or recognition inconsistency that would
otherwise arise;

• the financial liability forms part of a group of financial
assets or financial liabilities or both, which is managed
and its performance is evaluated on a fair value basis,
in accordance with the Company's documented risk
management or investment strategy, and information
about the grouping is provided internally on that basis; or

• it forms part of a contract containing one or more
embedded derivatives, and Ind AS 109 permits the entire
combined contract to be designated as at FVTPL in
accordance with Ind AS 109.

Financial liabilities at FVTPL are stated at fair value, with
any gains or losses arising on remeasurement recognised in
Statement of Profit and Loss. The net gain or loss recognised
in Statement of Profit and Loss incorporates any interest paid
on the financial liability and is included in the 'other gains and
losses' line item in the Statement of Profit and Loss.

d) Other Financial Liabilities

Other financial liabilities (including borrowings and trade
and other payables) are subsequently measured at
amortised cost using the effective interest method.

e) Derecognition of Financial Liabilities

The Company derecognises financial liabilities when, and
only when, the Company's obligations are discharged,
cancelled or have expired. An exchange with a lender
of debt instruments with substantially different terms

is accounted for as an extinguishment of the original
financial liability and the recognition of a new financial
liability. Similarly, a substantial modification of the terms
of an existing financial liability (whether or not attributable
to the financial difficulty of the debtor) is accounted for
as an extinguishment of the original financial liability and
the recognition of a new financial liability. The difference
between the carrying amount of the financial liability
derecognised and the consideration paid and payable is
recognised in profit or loss.

3.6 Cash and Cash Equivalent

Cash and cash equivalent in Balance Sheet comprise of
cash at bank, cash and cheques on hand and short-term
deposits with an original maturity of three months or less
which are subject to insignificant risk of changes in value.

3.7 Statement of Cash Flow

Cash flows are reported using the indirect method,
whereby profit / (loss) before tax is adjusted for the
effects of transactions of non-cash nature and any
deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing
and financing activities are segregated based on the
activities of the Company

3.8 Segment Reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the Chief Operating
Decision Maker (CODM).

The Managing Director & CEO is identified as the Chief
Operating Decision Maker (CODM) by the management
of the Company. CODM has identified only one operating
segment of providing loans for purchase, construction,
repairs renovation etc. and has its operations entirely
within India. All other activities of the Company revolve
around the main business. As such, there are no separate
reportable segments, as per the Indian Accounting
Standard (Ind AS) 108 on 'Segment Reporting.

3.9 Key Estimates and Judgements:

The preparation of the financial statements in conformity
with Indian Accounting Standards ("Ind AS”) requires
the management to make estimates, judgements
and assumptions. These estimates, judgements and
assumptions affect the application of accounting policies
and the reported amounts of assets and liabilities,
the disclosure of contingent assets and liabilities at
the date of the financial statements and the reported
amounts of revenues and expenses during the year.
Accounting estimates could change from period to
period. Actual results could differ from those estimates.

Revisions to accounting estimates are recognised
prospectively. The Management believes that the
estimates used in preparation of the financial statements
are prudent and reasonable. Future results could differ due
to these estimates and the differences between the actual
results and the estimates are recognised in the periods in
which the results are known / materialise.

i. Determination of Expected Credit Loss (“ECL”)

The measurement of impairment losses (ECL) across
all categories of financial assets requires judgement,
in particular, the estimation of the amount and timing
of future cash flows based on Company's historical
experience and collateral values when determining
impairment losses along with the assessment of a
significant increase in credit risk. These estimates are
driven by a number of factors, changes in which can
result in different levels of allowances.

Elements of the ECL models that are considered
accounting judgements and estimates include:

• Bifurcation of the financial assets into different
portfolios when ECL is assessed on collective basis.

• Company's criteria for assessing if there has been a
significant increase in credit risk.

• Development of ECL models, including choice of
inputs / assumptions used.

The various inputs used and process followed by the
Company in measurement of ECL has been detailed
in Note 35.4.2.3

ii. Fair Value Measurements

In case of financial assets and financial liabilities
recorded or disclosed in financial statements the
company uses the quoted prices in active markets
for identical assets or based on inputs which are
observable either directly or indirectly for determining
the fair value. However in certain cases, the Company
adopts valuation techniques and inputs which are
not based on market data. When Market observable
information is not available, the Company has applied
appropriate valuation techniques and inputs to the
valuation model.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data is available to measure fair value,
maximising the use of relevant observable inputs
and minimising the use of unobservable inputs.
Information about the valuation techniques and inputs
used in determining the fair value of Investments are
disclosed in Note 35.3.

iii. Income Taxes

The Company's tax jurisdiction is in India.
Significant judgements are involved in determining
the provision for direct and indirect taxes, including
amount expected to be paid/recovered for
certain tax positions.

iv. Evaluation of Business Model

Classification and measurement of financial
instruments depends on the results of the solely
payments of principal and interest on the principal
amount outstanding ("SPPI”) and the business model
test. The Company determines the business model
at a level that reflects how the Company's financial
instruments are managed together to achieve a
particular business objective.

The Company monitors financial assets measured
at amortised cost or fair value through other
comprehensive income that are derecognised prior
to their maturity to understand the reason for their
disposal and whether the reasons are consistent with
the objective of the business for which the asset was
held. Monitoring is part of the Company's continuous
assessment of whether the business model for which
the remaining financial assets are held continues to
be appropriate and if it is not appropriate whether
there has been a change in business model and
so a prospective change to the classification of
those instruments.

v. Provisions and Liabilities

Provisions and liabilities are recognised in the period
when they become probable that there will be an
outflow of funds resulting from past operations or
events that can be reasonably estimated. The timing
of recognition requires judgment to existing facts
and circumstances which may be subject to change.

3.10 Earnings Per Share

Basic earnings per share is calculated by dividing the net
profit or loss after tax for the year attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the year. The weighted average
number of equity shares outstanding during the year are
adjusted for events including a bonus issue, bonus element
in right issue to existing shareholders, share split, and
reverse share split (consolidation of shares).

For the purpose of calculating diluted earnings per share,
the net profit or loss after tax as adjusted for dividend,
interest and other charges to expense or income (net of
any attributable taxes) relating to the dilutive potential

equity shares divided by weighted average no of equity
shares year which are adjusted for the effects of all dilutive
potential equity shares.

3.11 Commitments

Commitments are future liabilities for contractual
expenditure. The commitments are classified and
disclosed as follows:

3.11.1 The estimated amount of contracts remaining to be
executed on capital account and not provided for; and

3.11.2 Other non-cancellable commitments, if any, to the
extent they are considered material and relevant in
the opinion of the Management.

4 IMMATERIAL ACCOUNTING INFORMATION
POLICIES:

4.1 Leases
As Lessee

The Company, as lessee has recognised lease liabilities and
right-of-use assets, has applied the following approach to
all of its leases (a) measured the lease liability at the date
of transition to Ind AS by measuring that lease liability at
the present value of the remaining lease payments and
discounted using the lessee's incremental borrowing rate
at the date of transition to Ind AS 116. Lease arrangements
entered during the year are measured at incremental
borrowing rate computed at the beginning of the year.
Lease liabilities are re-measured with a corresponding
adjustment to the related right of use asset if there is
change to its assessment whether it will exercise an
extension or a termination option. (b) Right Of Use assets
are recognized and measured at cost, consisting of initial
measurement of lease liability plus any lease payments
made to the lessor at or before the commencement
date less any lease incentives received, initial estimate
of restoration costs and any initial direct costs incurred
by lessee. They are subsequently measured at cost less
accumulated depreciation and impairment losses. Right of
Use Assets are depreciated from the commencement date
on a straight- line basis over the shorter of the lease term
or useful life of the underlying asset. They are evaluated for
recoverability whenever events or changes indicate that
their carrying amounts may not be recoverable.

The Company has not applied Ind AS 116 to Short Term
Leases, which are defined as leases with a lease term
of 12 months or less and leases of low-value assets.
The Company recognises the lease payments associated
with these leases as an expense over the lease term.

As a Lessor

Leases for which the company is a lessor is classified as a
finance or operating lease. Whenever the terms of the lease
transfer substantially all the risks and rewards of ownership
to the lessee, the contract is classified as a finance lease.
All other leases are classified as operating leases.

When the Company is an intermediate lessor, it accounts
for its interest in the head lease and the sublease separately.
The sublease is classified as a finance or operating
lease by reference to the right-of-use asset arising from
the head lease.

For operating leases, rental income is recognized on a
straight line basis over the term of the relevant lease.

4.2 Functional Currency and Foreign Exchange
Transactions

The functional currency of the Company is determined on
the basis of the primary economic environment in which it
operates. The Company has accordingly assessed INR as
its functional currency.

The transactions in currencies other than the entity's
functional currency are recognised at the rate of exchange
prevailing at the date when the transaction first qualifies
for recognition.

Monetary assets and liabilities denominated in foreign
currencies are translated at the functional currency spot
rates of exchange at the reporting date.

Non-monetary items carried at fair value that are
denominated in foreign currencies are retranslated at
the rates prevailing at the date when fair value was
determined. Non-monetary items measured at historical
cost are not translated.

Exchange difference arising on monetary items is
recognised in the Statement of Profit and Loss in the year
in which they arise.

4.3 Property, Plant and Equipment

Property, Plant and Equipment are recorded at their
cost of acquisition, net of refundable taxes or levies, less
accumulated depreciation and impairment losses, if any.
The cost thereof comprises of its purchase price, including
import duties and other non-refundable taxes or levies and
any directly attributable cost for bringing the asset to its
working condition for its intended use.

An item of property, plant and equipment is derecognised
upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset.

Any gain or loss arising on disposal or retirement of an
item of property, plant and equipment is determined as
the difference between the sale proceeds and the carrying
amount of the asset and is recognised in the Statement
of Profit and Loss. Property, plant and equipment except
freehold land held for use for administrative purposes,
are stated in the balance sheet at cost less accumulated
depreciation and accumulated impairment losses, if any.

Depreciable amount for assets is the cost of an asset,
or other amount substituted for cost, less its estimated
residual value. Depreciation is recognised so as to write
off the cost of assets (other than freehold land) less their
residual values over their useful lives, using the straight -
line method as per the useful life prescribed in the Schedule
II to the Companies Act, 2013, except in respect of Vehicles
(Motor cars) where useful life is estimated as 5 years based
on estimated usage of the assets.

Depreciation on additions to Fixed Assets is provided on
pro-rata basis from the date of acquisition or installation.
Depreciation on assets whose cost individually does not
exceed '5,000/- is fully provided in the year of purchase.
Depreciation on Assets sold, discarded, demolished or
scrapped, is provided upto the date on which the said
Asset is sold, discarded, demolished or scrapped.

The Company has applied depreciation requirements
as per Ind AS 116 in depreciating the right of use assets.
The Right of Use Asset is depreciated for the life of
the lease term.

The Company reviews the residual value, useful lives and
depreciation method annually and, if expectations differ
from previous estimates, the change is accounted for as
a change in accounting estimate on a prospective basis.

4.4 Intangible Assets and amortisation thereof

Intangible assets with finite useful lives that are acquired
separately are carried at cost less accumulated amortisation
and accumulated impairment losses. Amortisation is
recognised on a straight-line basis based on their estimated
useful lives. The estimated useful life and amortisation
method are reviewed at the end of each reporting period,

with effect of any changes in estimate being accounted
for on a prospective basis. Intangible assets with indefinite
useful lives that are acquired separately are carried at cost
less accumulated impairment losses, if any.

Computer software is amortised over the period of three
to five years on a straight-line basis.

An item of Intangible Asset is derecognised upon disposal
or when no future economic benefits are expected from its
use or disposal. Any gain or loss arising on derecognition
of the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the asset)
is included in the Statement of Profit and Loss when the
asset is derecognised.

Capital Work in Progress

Capital Work in Progress includes assets not ready for the
intended use and are carried at cost, comprising direct
cost and related incidental expenses less accumulated
impairment losses, if any.

4.5 Impairment of Property, Plant & Equipment and
Intangible Assets

At the end of each reporting year, the Company reviews
the carrying amounts of its tangible and intangible assets to
determine whether there is any indication that those assets
have suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated
in order to determine the extent of the impairment loss (if
any). Where it is not possible to estimate the recoverable
amount of an individual asset, the Company estimates the
recoverable amount of the cash-generating unit to which
the asset belongs. Where a reasonable and consistent basis
of allocation can be identified, corporate assets are also
allocated to individual cash-generating units, or otherwise
they are allocated to the smallest group of cash-generating
units for which a reasonable and consistent allocation basis
can be identified.

Intangible assets with indefinite useful lives and intangible
assets not yet available for use are tested for impairment
at least annually, and whenever there is an indication that
the asset may be impaired.

The Company has applied Ind AS 36, Impairment of Assets,
to determine whether the right-of-use asset is impaired
and to account for any impairment loss identified.

Recoverable amount is the higher of fair value less cost
to sell and value in use. 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 assets for which the estimates of future
cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating
unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is
reduced to its recoverable amount. An impairment loss is
recognised immediately in the Statement of Profit and Loss.