2.2 Summary of material accounting policies

a) Use of estimates, judgments and assumptions

The preparation of Standalone Financial Statements requires the management to make judgements, estimates and assumptions
that effect the reported amounts of revenues, expenses, assets and liabilities and the accompanying disclosures, and the
disclosure of contingent liabilities, at the end of the reporting year. Although these estimates are based on the management’s best
knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or liabilities in future years.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the year in which the estimate is revised if the revision affects only that year, or in the year of the revision and future years if the
revision affects both current and future years.

b) Current versus non-current classification

The Company presents assets and liabilities in the Standalone Balance Sheet based on current/ non-current classification.

An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle;

• Held primarily for the purpose of trading;

• Expected to be realised within twelve months after the reporting year; or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after
the reporting year.

All other assets are classified as non-current.

A liability is current when it is:

• Expected to be settled in normal operating cycle;

• Held primarily for the purpose of trading;

• Due to be settled within twelve months after the reporting year; or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting year.

The Company classifies all other liabilities as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents. The Company has identified twelve months as its operating cycle.

c) Common control business combinations

Common control business combination refers to a business combination involving entities in which all the combining entities are
ultimately controlled by the same party or parties both before and after the business combination, and that control is not transitory.
Business combinations involving entities or businesses under common control have been accounted for using the pooling of
interest method.

The assets and liabilities of the combining entities are reflected at their carrying amounts. No adjustments have been made to
reflect fair values, or to recognise any new assets or liabilities. Adjustments are made only to harmonise accounting policies.

The financial information in the Standalone Financial Statements in respect of prior periods have been restated as if the business
combination had occurred from the beginning of the earliest period presented in these Standalone Financial Statements,
irrespective of the actual date of the combination. However, if business combination had occurred after that date, the prior period
information has been restated only from that date.

The difference, if any, between the purchase consideration paid either in the form of share capital or cash or other assets and the
amount of net assets of the entities acquired is transferred to capital reserve in case of credit balance and Amalgamation
adjustment deficit account in case of debit balance and presented separately from other reserves within equity. The nature and
purpose of such reserve is disclosed in the notes.

d) Property, plant and equipment

Recogrjjii&^T^e^surement and de-recognition ____

Itera^sj^HSropei |t and equipment are measured at cost less accumulated depreciation and accumulate^rf^alrrae^^«es,

(w(,/} i \%\\

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

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate
items (major components) of property, plant and equipment.

Subsequent expenditures are capitalized, only when it is probable that future economic benefits associated with the expenditure
will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the
Standalone Statement of Profit and Loss during the reporting period in which they are incurred.

An item of property, plant and equipment and any significant part initially recognised 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 income statement
when the asset is derecognised.

Depreciation

Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual value over their estimated
useful lives using the straight-line method and is generally recognised in Standalone Statement of Profit and Loss. Depreciation
on additions / disposals is provided on a pro-rata basis i.e. from / upto the date on which asset is ready for use / disposed.

Improvements to leasehold buildings not owned by the Company are amortized over the lease year or estimated useful life of
such improvements, whichever is lower.

Depreciation method, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate.

The Company, based on technical assessment made by technical expert and management estimate, depreciates certain items
of office equipment and vehicles over estimated useful lives which are different from the useful life prescribed in Schedule II to
the Companies Act, 2013. The management believes that these estimated useful lives are realistic and reflect fair approximation
of the period over which the assets are likely to be used.

e) Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are
carried at cost less any accumulated amortisation and accumulated impairment losses, if any. Internally generated intangibles,
excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit or loss in the period
in which the expenditure is incurred.

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an
indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset
with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected
pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or
method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with
finite lives is recognised in the Standalone Statement of Profit and Loss unless such expenditure forms part of carrying value of
another asset.

An intangible asset is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic
benefits ape expected from its use or disposal. Any gain or loss arising upon derecognition of the asset (calculated as the difference
betweefyifeVreWiyesaI proceeds and the carrying amount of the asset) is included in the Standalone State^f^and
LossMfter'fthe ass^rsWrecognised.

Research and development costs |(co j?u) g ]j

Resaarc\costs ara'exc/ensed as incurred. Development expenditures on an individual project are recogn^d^s^anJpJangyDle
asset\hen^T]gT^omp^ny can demonstrate:

? The technical feasibility of completing the intangible asset so that the asset will be available for use or sale

? Its intention to complete and its ability and intention to use or sell the asset

? How the asset will generate future economic benefits

? The availability of resources to complete the asset

? The ability to measure reliably the expenditure during development

Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated
amortisation and accumulated impairment losses. Amortisation of the asset begins when development is complete, and the asset
is available for use. It is amortised over the period of expected future benefit. Amortisation expense is recognised in the Standalone
Statement of Profit and Loss unless such expenditure forms part of carrying value of another asset. During the period of
development, the asset is tested for impairment annually.

Intangible assets (including intangible assets acquired on business combination) are amortised on a straight-line basis over the
estimated useful economic life i.e. 3 years. All Intangible assets are assessed for impairment whenever there is an indication that
the intangible asset may be impaired. The amortisation year and the amortisation method for an intangible asset with a useful life
are reviewed at least at the end of each reporting year. Changes in the expected useful life or the expected pattern of consumption
of future economic benefits embodied in the asset are considered to modify the amortisation year or method, as appropriate, and
are treated as changes in accounting estimates.

f) Leases

The Company assesses at contract inception whether a contract is or contains a lease. That is, if the contract conveys the right to
control the use of an identified asset for a period of time in exchange for consideration.

Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of
low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right
to use the underlying assets.

Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is
available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and
adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives
received.

Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the
assets, i.e., 5 years.

If ownership of the right-of-use asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a
purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to
impairment. Refer to the accounting policies in section (h) Impairment of non-financial assets.

Lease Liabilities

At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments
to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any
lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under
residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be
exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising
the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses in the
period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement
date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease
liabilities is incp®ese*4<areflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount
of lease liatJ^^^iisiri^^sured if there is a modification, a change in the lease term, a change in the leas^ii^mSuts (e.g.,
changes K&Wure payn^tsVesulting from a change in an index or rate used to determine such lease paynterft^'onaAgwge in
the asseplment of an opttppJp purchase the underlying asset. (fcnf Ao

Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those
leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also
applies the lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value.
Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the
lease term,

g) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity.

Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other
comprehensive income (OCI), and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and
the Company's business model for managing them.

A financial asset (unless it is a trade receivable without a significant financing component) is initially measured at fair value plus or
minus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to its
acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash
flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred
to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and
measured at fair value through profit or loss, irrespective of the business model.

The Company’s business model for managing financial assets refers to how it manages its financial assets in order to generate
cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the
financial assets, or both. Financial assets classified and measured at amortised cost are held within a business model with the
objective to hold financial assets in order to collect contractual cash flows while financial assets classified and measured at fair
value through OCI are held within a business model with the objective of both holding to collect contractual cash flows and selling.

Subsequent Measurement

For purposes of subsequent measurement, financial assets are classified in below categories:

i) financial assets at Amortized cost

ii) financial assets at fair value through profit and loss (FVTPL)

i) Financial assets at Amortized cost:

A 'financial asset’ is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows,
and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.

Financial assets that are held within a business whose objective is to hold these assets in order to collect contractual cash
flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding are measured at amortized cost using effective interest rate (EIR)
method. The EIR amortization is recognised as finance income in the Standalone Statement of Profit and Loss.

The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are
recognised in the Standalone Statement of Profit and Loss. Any gain or loss on derecognition is recognised in the Standalone
Statement of Profit and Loss.

ii) Pi^p^i2l-ai^^qtfair value through profit and loss (FVTPL):

All financial assets ncMassified as measured at amortised cost or FVOCI as described above are/mepsurai^a^^THL.
Financial assets at fair value through profit or loss are carried in the Standalone Balance Sheet at fair
in fa^vat^^ecog^ed^/l the Standalone Statement of Profit and Loss.

This category includes listed equity investments which the Company had not irrevocably elected to classify at fair value
through OC!.

Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognised when:

® The rights to receive cash flows from the asset have expired, or

• The Company has transferred its rights to receive cash flows from the asset; and either (a) the Company has transferred
substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all
the risks and rewards of the asset, but has transferred control of the asset.

Financial liabilities:

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss or amortised cost, as
appropriate. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as
such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest
expense, are recognised in profit or loss.

The Company’s financial liabilities include trade and other payables.

Subsequent measurement

For purposes of subsequent measurement, all financial liabilities except financial liabilities held for trading, derivative financial
liabilities and financial liabilities designated upon initial recognition as at fair value through profit or loss are measured at amortised
cost.

Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised
in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest
expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also
recognised in profit or loss.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability
are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the
recognition of a new liability. 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 Standalone Statement of
Profit and Loss.

Reclassification of financial assets/financial liabilities

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 senior 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.

Offsetting of financial assets and financial liabilities

Financial assets and financial liabilities are offset and the net amount presented in the Standalone 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 realise the asset and settle the liability simultaneously.

Derivative financial instruments

Initial recognition and subsequent measurement

The Company uses derivative financial instruments, such as forward currency contracts to hedge its foreign currency risks. Such
derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and
are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as
financial liabilities when the fair value is negative.

The purchase contracts that meet the definition of a derivative under Ind AS 109 are recognised in the Standalone Statement of
Profit and Loss. Commodity contracts that are entered into and continue to be held for the purpose of the receipt or delivery of a
non-financial item in accordance with the Company's expected purchase, sale or usage requirements are held at cost.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss, except for the effective
portion of cash flow hedges, which is recognised in OCI and later reclassified to profit or loss when the hedge item affects profit
or loss or treated as basis adjustment if a hedged forecast transaction subsequently results in the recognition of a non-financial
asset or non-financial liability.

Fair Value Measurement

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 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: ______

*Ý In^^rincIpaJ&arket for the asset or liability, or

" Wbe absence oj%qrincipal market, in the most advantageous market for the asset or liability.

Tme principal or the most advantageous market must be accessible by the Company. The fair value of am^^ffllw^Llran^tyjis
maasiJi^d using^tneyssumptions that market participants would use when pricing the asset or liability, aWjlmimj thaCfnartret
parftqiMnlSjaCflrr^ best economic 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.

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

All assets and liabilities for which fair value is measured or disclosed in the Standalone Financial Statements are categorised within
the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a
whole:

• Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is

directly or indirectly observable

⁶ Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

The Company has set policies and procedures for both recurring and non-recurring fair value measurement of financial assets,
which includes valuation techniques and inputs to use for each case.

For fair value disclosures, the Company has determined classes of assets and liabilities based on the nature, characteristics and
risks of the asset or liability and the level of the fair value hierarchy as explained above.

This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

• Disclosures for valuation methods, significant estimates and assumptions (note 36)

• Quantitative disclosures of fair value measurement hierarchy (note 36)

• Financial instruments (including those carried at amortised cost) (note 36)

h) Impairment

i) Financial assets

The Company assesses on a forward-looking basis, the expected credit losses associated with its financial assets carried at
amortised cost for e.g., debt securities, deposits, trade receivables and bank balances. The impairment methodology applied
for financial assets except trade receivables depends on whether there has been a significant increase in credit risk and if so,
assess the need to provide for the same in the Standalone Statement of Profit and Loss.

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables. The application
of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss
allowance based on lifetime expected credit losses (ECL) at each reporting date, right from its initial recognition.

In respect of other financial assets (e.g.: debt securities, deposits, bank balances etc), the Company generally invests in
instruments with high credit rating and consequently low credit risk. In the unlikely event that the credit risk increases
significantly from inception of investment, lifetime ECL is used for recognising impairment loss on such assets.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial
instrument. ECL 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 entity expects to receive (i.e., all cash shortfalls), discounted at the original Effective
Interest Rate (EIR). When estimating the cash flows, an entity is required to consider all contractual terms of the financial
instrument over the expected life of the financial instrument.

ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/expense in the Standalone
Statement of Profit and Loss. This amount is reflected under the head 'other expenses' in the Standalone Statement of Profit
and Loss.

The Balance Sheet presentation for various financial instruments is described below:

Financial assets measured at amortised cost and trade receivables: ECL is presented as an allowance, i.e., as an integral
part of the measurement of those assets in the Standalone Balance Sheet. The allowance reduces the net carrying amount.
Until the as-sEt^yieSts^write-off criteria, the Company does not reduce impairment allowance from the gross carrying amount.

For a0d,s£ing increS&snn credit risk and impairment loss, the Company combines financial instruments based-en-^hared
credijrfsk characteristipgjJvith the objective of facilitating an analysis that is designed to enable significant ipjJi^SeA^S^dit
risk tc be identified onja timely basis. In addition, the Company considers that there has been a significanra^asel^h&Mit
risk \^en\^ontractua^pay/ients are more than 30 days past due. //to

The ComRanyj^onsi^re a financial asset in default when contractual payments are 90 days past due. Vlsjy^yer, in c^ftajn
cases, the COrnpaTiy may also consider a financial asset to be in default when internal or external informat^^ifrdfeet^^^let
the Company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit
enhancements held by the Company. A financial asset is written off when there is no reasonable expectation of recovering the
contractual cash flows.

ii) Impairment of investment in subsidiaries

The Company reviews its carrying value of investments in subsidiaries at cost, annually, or more frequently when there is an
indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.

Hi) Non-financial assets

Non-financial assets are tested for impairment events or changes in circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset’s fair value less cost of disposal 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 asset. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely
independent of the cash inflows from other assets or group of assets (cash-generating units). Impairment loss of non-financial
assets, if any are recognised in the Standalone Statement of Profit and Loss.

i) Revenue recognition

Revenue from contracts with customer

The Company generates revenue from online delivery of goods, display of advertisements on the platform, Assurance services
and other platform services. Revenue towards satisfaction of a performance obligation is measured at the amount of
transaction price (net of variable consideration) allocated towards that performance obligation. The transaction price of goods
sold and services rendered is net of any taxes collected from customers, which is remitted to government authorities and
variable consideration on account of discounts and schemes offered by the Company. The transaction price is an amount of
consideration to which the Company expects to be entitled in exchange for transferring promised goods or services.

Where performance obligation is satisfied at a point in time, the Company recognizes revenue when the customer obtains
control of promised services in the contract. Revenue is recognized net of any taxes collected from customers, which are
remitted to governmental authorities.

Revenue recognition for the various revenue streams is as follows:
i) Shipping Income

Revenue derived from operating the marketplace is recognized based on the terms of the contracts with the seller. Revenue
is recognised at a point in time upon the delivery of goods from the seller to the end consumer or upon the delivery of the
returned product to the seller. Revenue from contracts with seller is recognised when control of the goods or services are
transferred to the end consumer at an amount that reflects the consideration to which the Company expects to be entitled in
exchange for those goods or services. Revenue also excludes any amounts collected on behalf of sellers or any third parties
including taxes or duties collected on behalf of the government. As there is no credit period given to the sellers, there is no
financing component in the contract.

There are 2 different types of Shipping Income:

1. Forward Shipping income is a stream of revenue generated from shipping charges recovered from sellers upon successful
delivery of goods. The amount of Forward Shipping Income is determined based on factors including product weights, delivery
zones and the chosen mode of payment. Shipping charges reflect the logistical and operational costs associated with
transporting goods to their destinations.

2. Return shipping income is a stream of revenue that is recovered from the seller in case the product is returned or exchanged
by the end consumer. Return shipping fees are recognised upon the delivery of the returned product to the seller. The amount
of Reverse Shipping Income is determined based on factors including product weights, delivery zones, Logistics Carrier, etc.

The Company manages shipping services through its logistics platform - 'Valmo' and third-party logistics services providers.
Until 15 M^c^Q^vthe Company charged order shipping income from sellers and paid appropriate costs to the logistics
partner^^F'STag^pfkdeliveries i.e. first mile, mid mile and last mile delivery services. The Company considers itself to be
a prirrojjat in this aramrement and recognises revenue on a gross basis as the fulfilment of the ordep^^Pfe^primary
respopsirfility of the CoVnjaany. 2^s\

EffectVe \5March 2p25 Jhe Company has transitioned to a model wherein if the seller opts for

the lasr^le'deiivefy sej>vices the sellers are responsible with regard to the payment of logistics fees pertm^g^^tirli last
^mi|^e deliv&WiiiEriaJJae'Company merely acts a facilitator connecting delivery partners with the sellem^Nje arrara^ment
between seller and last mile delivery partner is on principal-to-principal basis. Sellers have the right to'^^me^Rej^rmile
delivery partners and related pricing and the Company considers itself to be an agent in this arrangement. The Company is
merely a technology platform provider in respect of last mile delivery, connecting last mile delivery partner and seller.
Accordingly, service fee from seller and last mile delivery partner is recognized as revenue in respect of last mile delivery.

ii) Mall fees

Mall Fee consists of commission, forward shipping charges and reverse shipping charges recovered from the sellers.
Commission is charged as a percentage of the sale price for each successful transaction made through the mall platform.
Forward shipping charges and reverse shipping charges represents revenue generated from shipping charges recovered from
sellers upon successful delivery of goods.

iii) Advertisement revenue

Advertisement revenue is derived principally from the display of online advertisements which is run on the platform. Revenue
from advertising is recognised based on the number of clicks on the online platform of the Company. Due to the short nature
of the credit period given to customers, there is no financing component in the contract.

iv) Return and RTO Assurance Program

The Return and RTO Assurance Program is a stream of revenue designed to offer sellers a way to manage and control their
return percentages effectively by offering financial predictability and protection against unforeseen return-related expenses.
The fee charged is a percentage of the sale revenue and is recognised at a point in time.

v) Discounts to Platform end consumers

The Company provides order related discounts to the end consumers to promote transactions on its platform. For all
transactions the Company is not responsible to provide any services to these platform end consumers or does not receive
consideration from the platform end consumers. Thereby, the Company does not consider the user as a customer and hence
the discounts extended to these platform users are recorded as expenses.

j) Other income

Interest income is recognised using the effective interest method. Effective interest is the rate that exactly discounts the estimated
future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying
amount of the financial asset. Interest income is included in other income in the Standalone Statement of Profit and Loss. Other
income primarily comprises interest income on fixed deposits, certificate of deposits and changes in fair value and gains/(losses)
on disposal of financial instruments classified as FVTPL.

k) Foreign currency transactions

Functional and presentation currency: Items included in the Standalone Financial Statements of the Company are measured using
the currency of the primary economic environment in which the Company operates (the functional currency). The Standalone
Financial Statements are presented in Indian Rupee (Rs.). For each entity the Company determines the functional currency and
items included in the Standalone Financial Statements of each entity are measured using that functional currency. All amounts
have been rounded off to two decimal places to the nearest millions, unless otherwise indicated.

i) Transactions and balances: 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 generally recognised in profit or loss. Exchange differences arising on monetary items
that forms part of a reporting entity’s net investment in a foreign operation are recognised in profit or loss in the
separate financial statements of the reporting entity or the individual financial statements of the foreign operation, as
appropriate. In the financial statements that include the foreign operation and the reporting entity, such exchange
differences are recognised initially in OCI. These exchange differences are reclassified from equity to profit or loss
on disposal of the net investment.

ii) Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss
arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain
or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is

@or profit or loss are also recognised in OCI or profit or loss, respectively).

inancial position of foreign operations (none of which has the currency ^y^yperinlMtoiMry
e a functional currency different from the presentation currency are translatea^m^^^^ji|^|(on

les are translated at the closing rate at the date of that balance sheet.

• income and expenses are translated at average exchange rates (unless this is not a reasonable approximation of
the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are
translated at the dates of the transactions), and
» all resulting exchange differences are recognised in other comprehensive income.

I) Income taxes

Income tax comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to an item
recognised directly in equity or in other comprehensive income.

i. Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities
in accordance with the Income-tax Act, 1961 enacted in India. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognised outside
the Standalone Statement of Profit and Loss is recognised outside the Standalone Statement of Profit and Loss (either in OCI
or in equity in correlation to the underlying transaction). Management periodically evaluates whether it is probable that the
relevant taxation authority would accept an uncertain tax treatment that the Company has used or plan to use in its income
tax filings, including with respect to situations in which applicable tax regulations are subject to interpretation and establishes
provisions, where appropriate. The Company shall reflect the effect of uncertainty for each uncertain tax treatment by using
either most likely method or expected value method, depending on which method predicts better resolution of the treatment.
Advance taxes and provisions for current income taxes are presented in the Standalone Balance Sheet after offsetting
advance tax paid and current tax provision arising in the same tax jurisdiction and where the relevant tax paying units intends
to settle the asset and liability on a net basis.

ii. Deferred tax

Deferred tax is provided on temporary differences between the tax bases of assets and liabilities and their carrying amounts
for financial reporting purposes at the reporting date. Deferred tax liabilities and assets are recognized for all taxable temporary
differences and deductible temporary differences, except:

» when the deferred tax liability arises from the initial recognition of goodwill or when deferred tax liability or asset
arises on an asset or liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; and does not give rise to equal taxable and deductible
temporary differences.

• in respect of taxable temporary differences and deductible temporary differences associated with investments in
subsidiary and associates, when the timing of the reversal of the temporary differences can be controlled and it is
probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized. The
carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred
tax assets are re-assessed at each reporting date and are recognised to the extent it has become probable that future taxable
profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is
realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the
reporting date. Deferred tax relating to items recognised outside the Standalone Statement of Profit and Loss is recognised
outside the Standalone Statement of Profit and Loss (either in OCI or in equity in correlation to the underlying transaction).

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Deferred tax assets are reviewed as at each reporting date and written down or written up to reflect the amount that is reliably
measured.