2 SIGNIFICANT ACCOUNTING POLICIES
a Basis of Preparation

These financial statements have been prepared in
accordance with the Generally Accepted Accounting
Principles in India (‘Indian GAAP') to comply with the
Accounting Standards specified under Section 133 of
the Companies Act, 2013, as applicable. The financial
statements have been prepared under the historical
cost convention on accrual basis, except for certain
financial instruments which are measured at fair
value.

b Use of Estimates

The preparation of financial statements requires the
management to make estimates and assumptions that
affect the reported amounts of assets and liabilities,
as on the date of the financial statements and the
reported amount of revenue and expenses of the year.
Actual results could differ from these estimates. Any
revision to estimates is recognised prospectively in
current and future periods.

c Property, Plant and Equipment

Property, Plant and Equipment are stated at cost,
less accumulated depreciation / amortisation. Costs
include all expenses incurred to bring the asset to its
present location and condition.

Property, Plant and Equipment exclude computers
and other assets individually costing ^ 5,000 or less
which are not capitalised except when they are part of
a larger capital investment programme.

Capital work-in-progress:

Expenditure incurred on property rented is carried
at cost under Capital work-in-progress. Such cost
comprises of contractor's payment and purchase price
of asset including import duties and non-refundable
taxes after deducting trade discounts and rebates
and cost that are directly attributable to bringing the
asset to the location and condition necessary for it to
be capable of operating in the manner intended by the
management.

Gains and losses on disposals are determined by
comparing proceeds with carrying amount. These are
included in the Statement of Profit and Loss.

d Intangible assets

Intangible fixed assets comprising of Brand name
and Website are stated at cost including any cost
attributable for bringing the asset to its working
condition, less accumulated depreciatIon. Any
expenses on such asset for support and maintenance
payable annually are charged to the statement of
Profit and Loss.

e Depreciation and amortization

Depreciation has been provided on the Fixed Asset on
the SLM method and in accordance with the useful
life of the Asset as prescribed under Schedule II of the
Companies Act, 2013.

f Impairment of assets

As at Balance Sheet date, the Company assesses
whether there is any indication that an asset may be
impaired and if any such indication exists, the Company
estimates the recoverable amount of the asset. If such
recoverable amount of the asset or the recoverable

amount of the cash generating unit, to which the asset
belongs, is less than its carrying value, the carrying
amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is
recognized in the Statement of Profit and Loss. An
assessment is also done at each Balance Sheet date
as to whether there is an indication that if a previously
assessed impairment loss, no longer exists or may
have decreased, the recoverable amount is reassessed
and the asset is reflected at revised estimate of its
recoverable amount, so that the increased carrying
amount does not exceed the carrying amount that
would have been determined had no impairment loss
been recognized for the asset in prior years. A reversal
of impairment loss is recognized in the statement of
Profit and Loss. After recognition of impairment
loss or reversal of impairment loss as applicable,
the depreciation charge for the asset is adjusted in
future periods to allocate the asset's revised carrying
amount, less its residual value (if any), on method of
depreciation followed for the assets concerned over
its remaining useful life. During the year, Company
has not recognised impairment loss.

g Investment

Long-term investments and current maturities of long¬
term investments are stated at cost, less provision for
other than temporary diminution in value. Current
investments, except for current maturities of long¬
term investments, comprising investments in mutual
funds, government securities and bonds are stated at
the lower of cost and fair value.

h Cash and cash equivalents

The Company considers all highly liquid financial
instruments, which are readily convertible into known
amount of cash that are subject to an insignificant risk
of change in value and having original maturities of
three months or less from the date of purchase, to be
cash equivalents.

i Borrowing Cost

Borrowing costs that are directly attributable to the
acquisition or construction of qualifying assets are
capitalised as part of the cost of such assets up to
the date when such assets are ready for its intended
use. All other borrowing costs are recognised in profit
and loss in the period in which they are incurred.
Borrowing costs includes interest, ancillary costs
incurred in connection with the arrangement of the

borrowings and exchange differences arising from
foreign currency borrowings to the extent they are
regarded as an adjustment to the interest cost.

j Events occurring after the Balance Sheet date

Events occurring after the balance sheet date
are those significant events, both favourable and
unfavourable, that occur between the balance sheet
and the date on which the Standalone financial
statements are approved by the Board of Directors.
Adjustments to assets and liabilities are required for
events occurring after the balance sheet date that
provide additional information materially affecting
the determination of the amounts relating to
conditions existing at the balance sheet date. To that
extent Assets and Liabilities are adjusted for events
occurring after the balance sheet date which indicate
that the fundamental accounting assumption of going
concern is not appropriate.

k Revenue recognition

Revenue from Contract with Customer: Revenue
from contracts with customers is recognized when
services are transferred to the customer at an amount
that reflects the consideration to which the Company
expects to be entitled in exchange for those services
and there is no uncertainty of its receipt. In other cases,
revenue is recognized when right to receive income is
established and when it is reasonably certain that the
ultimate collection will be made and the amount of
revenue can be reliably measured.

Interest income recognised on time proportion basis
taking into account the amount outstanding and rate
applicable.

The capital gain on sale of investments if any are
recognized on completion of transaction. No notional
profit/loss are recognized on such investments.

L Employee Benefits

Short term employees benefit

All short term employees benefit such as salaries,
medical benefits which fall due within 12 months of
the period in which the employee renders the related
services which entitles him to avail such benefits are
recognised and charged to the statement of profit and
loss as incurred except bonus. Bonus is payable on
payment basis and charged to profit and loss account
in the year of payment.

Post-employment Benefits - Defined Benefits Plans

Liabilities recognised in respect of 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.

The accumulated balance of leave is encashed at the
time of resignation/termination of services from the
Company. Liabilities recognised in respect of 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.

Gratuity liability arises on retirement, resignation,
and death of an employee. The aforesaid liability is
calculated on the basis of 15 days salary (i.e. last
drawn basic salary plus dearness allowance) for each
completed year of service.

Liability for the above defined benefit plan is provided
on the basis of valuation, as at the Balance Sheet
date, carried out by an independent actuary. The
actuarial method used for measuring the liability is
the Projected Unit Credit method.

m Leases

Where the Company is lessee

Leases, where the lessor effectively retains
substantially all the risks and benefits of ownership
of the leased item, are classified as operating leases.
Operating lease payments are recognized as an
expense in the statement of profit and loss on a
straight-line basis over the lease term.

Leases under which the Company assumes
substantially all the risks and rewards of ownership
are classified as finance leases. Assets taken on
finance lease are initially capitalised at fair value
of the asset or present value of the minimum lease
payments at the inception of the lease, whichever is
lower. Lease payments are apportioned between the
finance charge and the reduction of the outstanding
liability. The finance charge is allocated to periods
during the lease term so as to produce a constant
periodic rate of interest on the remaining balance of
the liability for each period.”

Where the Company is the lessor

Leases in which the Company does not transfer
substantially all the risks and benefits of ownership
of the asset are classified as operating leases. Assets
subject to operating leases are included in property,
plant and equipment. Lease income on an operating
lease is recognized in the statement of profit and
loss on a straight-line basis over the lease term.
Costs, including depreciation, are recognized as an
expense in the statement of profit and loss. Initial
direct costs such as legal costs, brokerage costs,
etc. are recognized immediately in the Statement of
Profit and Loss.

n Current/ non-current classification

All assets and liabilities have been classified as current
or non-current as per the Company's normal operating
cycle and other criteria set-out in the Act. Deferred
tax assets and liabilities are classified as non-current
assets and non-current liabilities, as the case may be.

o Foreign currency transactions

Income and expense in foreign currencies are
converted at exchange rates prevailing on the date of
the transaction. Foreign currency monetary assets and
liabilities other than net investments in non-integral
foreign operations are translated at the exchange rate
prevailing on the balance sheet date and exchange
gains and losses are recognised in the statement of
profit and loss.

p Taxation

Current income tax expense comprises taxes on
income from operations in India and in foreign
jurisdictions. Income taxpayable in India is determined
in accordance with the provisions of the Income Tax
Act, 1961. Tax expense relating to foreign operations
is determined in accordance with tax laws applicable
in countries where such operations are domiciled.

Deferred tax expense or benefit is recognised on
timing differences being the difference between
taxable income and accounting income that originate
in one period and is likely to reverse in one or more
subsequent periods. Deferred tax assets and liabilities
are measured using the tax rates and tax laws that
have been enacted or substantively enacted by the

balance sheet date. The Company offsets deferred
tax assets and deferred tax liabilities if it has a legally
enforceable right and these relate to taxes on income
levied by the same governing taxation laws.

Advance taxes and provisions for current income taxes
are presented in the balance sheet after off-setting
advance tax paid and income tax provision arising in
the same tax jurisdiction for relevant tax paying units
and where the Company is able to and intends to settle
the asset and liability on a net basis.

q Earnings Per Shares

Basic earning per share is computed by dividing the
net profit or loss for the period attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the period. Diluted
earning per share is computed by taking into account
the weighted average number of equity shares
outstanding during the period and the weighted
average number of equity shares which would be
issued on conversion of all dilutive potential equity
shares into equity shares.

r Exceptional Items

When items of income and expense within profit or
loss from ordinary activities are of such size, nature
or incidence that their disclosure is relevant to explain
the performance of the Company for the period,
the nature and amount of such items is disclosed
separately under the head exceptional item.