2. Material Accounting policies

a) Basis of preparation

The standalone financial statements of the Company
have been prepared in accordance with Indian
Accounting Standards (Ind AS) notified under the
Companies (Indian Accounting Standards) Rules,
2015 (as amended from time to time) read with
section 133 of Companies Act, 2013 and presentation
requirements of Division III of schedule III to the
Companies Act, 2013 (Ind AS compliant Schedule III),
on the historical cost basis except for certain financial
instruments that are measured at fair values, as
explained in the accounting policies below.

The financial statements are presented in INR (H)
which is also the Company's functional currency and
all values are rounded to the nearest million, except
when otherwise indicated.

b) Revenue recognition

Revenue from contracts with customers is recognised
when control of the goods or 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 goods or services.
Revenue is measured based on the transaction price,
which is the consideration, adjusted for discounts and
other incentives, if any, as specified in the contract
with the customer.

Further, the Company collects Goods and Services
tax (GST) on behalf of the government and, therefore,
these are not economic benefits flowing to the
Company. Hence, it is excluded from revenue.

The specific recognition criteria described below
must also be met before revenue is recognised.

Service income

Revenue from services rendered is recognised when
relevant services have been rendered, as per the
agreed terms with the customer.

Interest Income

Interest income is recorded on accrual basis using the
effective interest rate (EIR) method.

Contract asset

A contract asset is the right to consideration in
exchange for goods or services transferred to the
customer. If the Company performs by transferring
goods or services to a customer before the
customer pays consideration or before payment is
due, a contract asset is recognised for the earned
consideration that is conditional.

Contract liability

A contract liability is the obligation to transfer
goods or services to a customer for which the
Company has received consideration (or an amount
of consideration is due) from the customer. If a
customer pays consideration before the Company
transfers goods or services to the customer, a contract
liability is recognised when the payment is made or
the payment is due (whichever is earlier). Contract
liabilities are recognised as revenue when the
Company performs under the contract. Invoicing in

excess of revenues are classified as contract liabilities
(which are referred to as 'deferred revenues').

Variable Consideration

Rights of return, volume discounts, or any other
form of variable consideration is estimated using
either the sum of probability weighted amounts in a
range of possible consideration amounts (expected
value), or the single most likely amount in a range of
possible consideration amounts (most likely amount),
depending on which method better predicts the
amount of consideration realizable. Transaction price
includes variable consideration only to the extent it
is probable that a significant reversal of revenues
recognized will not occur when the uncertainty
associated with the variable consideration is resolved.
The management estimates of variable consideration
and determination of whether to include estimated
amounts in the transaction price may involve
judgement and are based largely on an assessment
of the Company's anticipated performance and all
information that is reasonably available.

c) Property, plant and equipment

Recognition and initial measurement

Property plant and equipment are stated at their cost
of acquisition. The cost comprises purchase price and
directly attributable cost of bringing the asset to its
working condition for the intended use. Any trade
discount and rebates are deducted in arriving at the
purchase price. Subsequent costs are included in the
asset's carrying amount or recognised as a separate
asset, as appropriate, only when it is probable
that future economic benefits associated with the
item will flow to the Company. All other repair and
maintenance costs are recognised in statement of
profit and loss as incurred.

Subsequent measurement (depreciation and
useful lives)

In respect of Property, plant and equipment covered
under part A of Schedule II to the Companies Act,
2013, depreciation is recognised based on the cost
of assets (other than freehold land) less their residual
values over their useful lives, using the straight-line
method in the statement of profit and loss unless
such expenditure forms part of carrying value of
another asset. The useful life of property, plant and

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. The estimated useful lives, residual values and
depreciation method are reviewed at the end of each
reporting period, with the effect of any changes in
estimate accounted for on a prospective basis.

Derecognition

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 de-recognition 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.

d) Intangible assets

Recognition and initial measurement

Intangible assets include cost incurred for
development of the web platform. Intangible assets
are initially measured at acquisition cost including any
directly attributable costs of preparing the asset for its
intended use and are carried at cost less accumulated
amortisation and accumulated impairment losses.

Subsequent measurement (depreciation and
useful lives)

The intangible assets are amortised over a period of
3 years on a straight-line basis, commencing from
the date the asset is available to the Company for its
use. The amortisation period is reviewed at the end
of each financial year and the amortisation method is
revised to reflect the changed pattern.

Derecognition

An intangible asset is derecognised upon disposal
or when no future economic benefits are expected

to arise from the continued use of the asset. Gains
or losses arising from derecognition of an intangible
asset, measured as the difference between the net
disposal proceeds and the carrying amount of the
asset, are recognised in the standalone statement of
profit and loss when the asset is derecognised.

e) Leases

Company as a lessee

The Company recognises right-of-use assets and
lease liabilities for all leases except for short-term
leases and leases of low-value assets.

The Company applies the available practical
expedients wherein it:

- Uses a single discount rate to a portfolio of
leases with reasonably similar characteristics

- Relies on its assessment of whether leases
are onerous immediately before the date of
initial application

- Applies the short-term leases exemptions
to leases with lease term that ends within 12
months at the date of initial application

- Excludes the initial direct costs from the
measurement of the right-of-use asset at the
date of initial application

- Determining the lease term of contracts
with renewal and termination options where
Company is lessee - The Company determines
the lease term as the non-cancellable term of
the lease, together with any periods covered by
an option to extend the lease if it is reasonably
certain to be exercised, or any periods covered
by an option to terminate the lease, if it is
reasonably certain not to be exercised.

- The Company has several lease contracts that
include extension and termination options.
The Company applies judgement in evaluating
whether it is reasonably certain whether or not
to exercise the option to renew or terminate the
lease. That is, it considers all relevant factors that
create an economic incentive for it to exercise
either the renewal or termination.

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). 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.

The Company depreciates the right-of-use assets on
a straight-line basis from the lease commencement
date to the earlier of the end of the useful life of the
right-of-use asset or the end of the lease term. The
Company also assesses the right-of-use asset for
impairment when such indicators exist.

Lease Liability

The Company records the lease liability at the
present value of the lease payments discounted at
the incremental borrowing rate at the date of initial
application and right of use asset at an amount equal
to the lease liability adjusted for any prepayments/
accruals recognised in the balance sheet. 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 (unless they are incurred to produce
inventories) in the period in which the event or
condition that triggers the payment occurs.

Subsequent to initial measurement, the liability
is reduced for payments made and increased for
interest. It is remeasured to reflect any reassessment
or modification, or if there are changes in in¬
substance fixed payments. When the lease liability
is remeasured, the corresponding adjustment is
reflected in the right-of-use asset, or profit and loss
if the right-of-use asset is already reduced to zero.

Short-term leases and leases of low-value assets

The Company has elected to account for short¬
term leases and leases of low-value assets using the
practical expedients. Instead of recognising a right-of-
use asset and lease liability, the payments in relation
to these are recognised as an expense in profit or loss
on a straight-line basis over the lease term.

Company 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 interests
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.

Finance leases

Leases which effectively transfer to the lessee
substantially all the risks and benefits incidental
to ownership of the leased item are classified and
accounted for as finance lease. Lease rental receipts
are apportioned between the finance income and
capital repayment based on the implicit rate of return.
Contingent rents are recognised as revenue in the
period in which they are earned.

Operating leases

Leases in which the Company does not transfer
substantially all the risks and rewards of ownership
of an asset are classified as operating leases. The
respective leased assets are included in the balance
sheet based on their nature. Rental income is
recognized on straightline basis over the lease term
except where scheduled increase in rent compensates
the Company with expected inflationary costs.

f) Impairment of non-financial assets

The carrying amounts of assets are reviewed at
each Balance Sheet date. If there is any indication
of impairment based on internal / external factors,
an impairment loss is recognised, i.e. wherever the
carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the

assets net selling price and value in use. Recoverable
amount is determined for an individual asset, unless
the asset does not generate cash inflows that are
largely independent of those from other assets or
groups of assets. When the carrying amount of an
asset or Cash Generating Unit (CGU) exceeds its
recoverable amount, the asset is considered impaired
and is written down to its recoverable amount.

In assessing value in use, the estimated future cash
flows are discounted to their present value using a
pre-tax discount rate that reflects current market
assessments of the time value of money and the risks
specific to the asset. After impairment, depreciation is
provided on the revised carrying amount of the asset
over its remaining useful life.

The Company bases its impairment calculation on
most recent budgets and forecast calculations, which
are prepared for the Company's CGUs to which the
individual assets are allocated. These budgets and
forecast calculations generally cover a period of
five years. A long-term growth rate is calculated
and applied to project future cash flows after the
fifth year. Impairment losses are recognised in the
Statement of Profit and Loss. For assets excluding
goodwill, an assessment is made at each reporting
date to determine whether there is an indication that
previously recognised impairment losses no longer
exist or have decreased. If such indication exists, the
Company estimates the asset's or CGU's recoverable
amount. A previously recognised impairment
loss is reversed only if there has been a change
in the assumptions used to determine the asset's
recoverable amount since the last impairment loss was
recognised. The reversal is limited so that the carrying
amount of the asset does not exceed its recoverable
amount, nor exceed the carrying amount that would
have been determined, net of depreciation, had no
impairment loss been recognised for the asset in prior
years. Such reversal is recognised in the Statement of
Profit or Loss unless the asset is carried at a revalued
amount, in which case, the reversal is treated as a
revaluation increase.

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.

Initial recognition and measurement

Financial assets and financial liabilities are recognised
when the Company becomes a party to the
contractual provisions of the financial instrument
and are measured initially at fair value adjusted for
transaction costs, unless the financial instrument
is designated to be measured at fair value through
profit or loss (FVPL) or fair value through other
comprehensive income (FVOCI). However, trade
receivables that do not contain a significant financing
component and are measured at transaction price.

Financial assets
Subsequent measurement

Financial assets at amortised cost - the financial
assets are measured at the amortised cost if both the
following conditions are met:

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

• 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.

After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method. All other debt
instruments are measured at FVOCI or FVTPL based
on Company's business model. All investments in
mutual funds in scope of Ind-AS 109 are measured
at FVTPL.

Classification

Financial assets measured at amortised cost

Financial assets that meet the criteria for subsequent
measurement at amortised cost are measured
using effective interest method ("EIR") (except for
debt instruments that are designated as at fair
value through profit or loss on initial recognition).
Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees or
costs that are an integral part of the EIR.

Financial assets at fair value through other
comprehensive income (FVTOCI)

Financial assets that meet the criteria for initial
recognition at FVTOCI are remeasured at fair value
at the end of each reporting date through other
comprehensive income (OCI).

Financial assets at fair value through profit or
loss (FVTPL)

Financial assets that do not meet the amortised
cost criteria or FVTOCI criteria are remeasured at fair
value at the end of each reporting date through profit
and loss

Impairment of financial assets

In accordance with Ind-AS 109, the Company applies
expected credit loss (ECL) model for measurement
and recognition of impairment loss for financial assets.

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 Company
expects to receive. When estimating the cash flows,
the Company considers -

• All contractual terms of the financial assets
(including prepayment and extension) over the
expected life of the assets.

• Cash flows from the sale of collateral held or other
credit enhancements that are integral to the
contractual terms.

Other financial assets

For recognition of impairment loss on other financial
assets and risk exposure, the Company determines
whether there has been a significant increase in the
credit risk since initial recognition and if credit risk
has increased significantly, life time impairment loss is
provided, otherwise provides for 12 month expected
credit losses.

De-recognition of financial assets

A financial asset is primarily de-recognised 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.

Financial liabilities and equity instruments
Classification as debt or equity

Debt and equity instruments issued by the 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.

Financial liabilities subsequent measurement

Subsequent to initial recognition, these liabilities
are measured at amortised cost using the effective
interest method. These liabilities include borrowings
and deposits.

Classification of Financial liabilities

Financial liabilities at fair value through profit or loss
(FVTPL) Financial liabilities at fair value through profit
or loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition
as fair value through profit or loss. Financial liabilities
are classified as held for trading if these are incurred
for the purpose of repurchasing in the near term.
This category also includes derivative financial
instruments entered into by the Company those are
not designated as hedging instruments in hedge
relationships as defined by Ind AS 109.

Financial liabilities designated upon initial recognition
at fair value through profit or loss are designated as
such at the initial date of recognition, and only if
the criteria in Ind AS 109 are satisfied. Subsequent
changes in fair value of liabilities are recognised in
the statement of profit and loss.

Financial liabilities measured at amortised cost

Financial liabilities that are not held-for trading and
are not designated as at FVTPL are measured at
amortised cost at the end of subsequent accounting
periods. The carrying amounts of financial liabilities
that are subsequently measured at amortised cost are
determined based on the effective interest method.
Interest expense that is not capitalised as part of costs
of an asset is included in the 'Finance costs' line item
in the statement of profit and loss.

De-recognition of financial liabilities

A financial liability is de-recognised 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 de¬
recognition of the original liability and the recognition
of a new liability. The difference in the respective
carrying amounts is recognised in the statement of
profit and loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle
the liabilities simultaneously.

h) Investments in subsidiaries

The Company has accounted for its investments
in subsidiaries at cost in its standalone financial
statements, in accordance with Ind AS- 27, Standalone
Financial Statements.

Where the carrying amount of an investment is
greater than its estimated recoverable amount, it is
assessed for recoverability and in case of performance
diminution, provision for impairment is recorded
in statement of profit and loss. On disposal of
investment, the difference between the net disposal
proceeds and the carrying amount is charged to the
statement of profit and loss.

i) Income taxes

Income tax expense comprises current tax expense
and the net change in the deferred tax asset or
liability during the year. Tax expense recognised in
statement of profit and loss comprises the sum of
deferred tax and current tax not recognised in Other
Comprehensive Income ("OCI") or directly in equity.

Current Tax

Current tax expenses are accounted in the same
period to which the revenue and expenses relate.
Provision for current income tax is made for the tax
liability payable on taxable income after considering
tax allowances, deductions and exemptions
determined in accordance with the applicable tax
rates and the prevailing tax laws.

Current tax assets and current tax liabilities are offset
when there is a legally enforceable right to set off
the recognised amounts and there is an intention to
settle the asset and the liability on a net basis.

Deferred tax

Deferred tax is recognised for the future tax
consequences of deductible temporary differences
between the carrying values of assets and liabilities
and their respective tax bases at the reporting date.
Deferred tax liabilities are generally recognised for
all taxable temporary differences except when the
deferred tax liability arises at the time of transaction
that affects neither the accounting profit or loss nor
taxable profit or loss. Deferred tax assets are generally
recognised for all deductible temporary differences,
carry forward of unused tax credits and any unused
tax losses, to the extent that it is probable that future
taxable income will be available against which
the deductible temporary differences and carry
forward of unused tax credit and unused tax losses
can be utilised, except when the deferred tax asset
relating to temporary differences arising at the time
of transaction affects neither the accounting profit
or loss nor the taxable profit or loss. Deferred tax
relating to items recognised outside the statement
of profit and loss is recognised outside the statement
of profit and loss, either in other comprehensive
income or directly in equity. 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 that it has become probable that future
taxable profits will allow the deferred tax assets to
be recovered.

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

Deferred tax relating to items recognised outside
profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity).

Deferred tax items are recognised in correlation to
the underlying transaction either in OCI or directly
in equity.

The Company offsets deferred tax assets and deferred
tax liabilities if and only if it has a legally enforceable
right to set off current tax assets and current tax
liabilities and the deferred tax assets and deferred
tax liabilities relate to income taxes levied by the
same taxation authority on the same taxable entity
which intend either to settle current tax liabilities and
assets on a net basis, or to realise the assets and settle
the liabilities simultaneously, in each future period in
which significant amounts of deferred tax liabilities
or assets are expected to be settled or recovered.

When there is uncertainty regarding income tax
treatments, the Company assesses whether a tax
authority is likely to accept an uncertain tax treatment.
If it concludes that the tax authority is unlikely to
accept an uncertain tax treatment, the effect of the
uncertainty on taxable income, tax bases and unused
tax losses and unused tax credits is recognised. The
effect of the uncertainty is recognised using the
method that, in each case, best reflects the outcome
of the uncertainty: the most likely outcome or
the expected value. For each case, the Company
evaluates whether to consider each uncertain tax
treatment separately, or in conjunction with another
or several other uncertain tax treatments, based
on the approach that best prefixes the resolution
of uncertainty.

j) Cash and cash equivalents

Cash and cash equivalents comprise Cash on hand,
demand deposits with banks/ corporations and short¬
term highly liquid investments (original maturity less
than 3 months) that are readily convertible into known
amount of cash and are subject to an insignificant risk
of change in value.

k) Foreign currency translations

In preparing the financial statements of the Company,
transactions in currencies other than the entity's
functional currency are recognised at the rate of
exchange prevailing at the date of the transactions.
At the end of each reporting period, monetary items
denominated in foreign currencies are retranslated
at the rates prevailing at that date. Non-monetary

items that are measured in terms of historical cost
in a foreign currency are not retranslated. Exchange
differences on monetary items are recognised in
profit and loss in the period in which they arise.

l) Employee benefits

Defined contribution plans

The Company makes contribution to the statutory
provident fund in accordance with the Employees
Provident Fund and Miscellaneous Provision Act, 1952
which is a defined contribution plan and contribution
paid or payable is recognised as an expense in the
period in which the services are rendered.

Defined benefit plans

Gratuity is in the nature of a defined benefit plan.
The liability recognised in the standalone financial
statements in respect of gratuity is the present value
of the defined benefit obligation at the reporting
date together with adjustments for unrecognised
actuarial gains or losses and past service costs. The
defined benefit obligation is calculated at or near the
reporting date by an independent actuary using the
projected unit credit method.

Actuarial gains and losses arising from past experience
and changes in actuarial assumptions are credited or
charged to the statement of OCI in the year in which
such gains or losses are determined.

Compensated Absences:

Provision for compensated absences and its
classifications between current and non-current
liabilities are based on independent actuarial
valuation. The actuarial valuation is done as per the
projected unit credit method as at the reporting date.

Actuarial gains and losses arising from past experience
and changes in actuarial assumptions are charged to
statement of profit and loss in the year in which such
gains or losses are determined.

Short-term employee benefits

These are recognised at an undiscounted amount in
the Statement of Profit and Loss for the year in which
the related services are rendered.

m) Share Based payment

Employees (including senior executives) of the
Company receive remuneration in the form of share
based payment transactions, whereby employees
render services as consideration for equity
instruments (equity-settled transactions).

The cost of equity-settled transactions is determined
by the fair value at the date when the grant is made
using an appropriate valuation model. That cost is
recognized, together with a corresponding increase
in share Options outstanding reserves in equity,
over the period in which the performance and/or
service conditions are fulfilled in employee benefits
expense. The cumulative expense recognized for
equity-settled transactions at each reporting date
until the vesting date reflects the extent to which
the vesting period has expired and the Company's
best estimate of the number of equity instruments
that will ultimately vest. The Statement of Profit
and Loss expense or credit for a period represents
the movement in cumulative expense recognized
as at the beginning and end of that period and is
recognized in employee benefits expense.

When the terms of an equity-settled award are
modified, the minimum expense recognized is the
expense had the terms had not been modified, if the
original terms of the award are met. An additional
expense is recognized for any modification that
increases the total fair value of the share-based
payment transaction or is otherwise beneficial to the
employee as measured at the date of modification.
Where an award is cancelled by the entity or by the
counterparty, any remaining element of the fair value
of the award is expensed immediately through profit
or loss.