2. Material accounting policies

2.1 Statement of compliance and basis of
preparation

A. Statement of Compliance

The Standalone Financial Statements of the
Company comprise of the Standalone Balance
Sheet as at March 31, 2025, the Standalone
Statement of Profit and Loss (including Other
Comprehensive Income), the Standalone
Statement of Changes in Equity, the Standalone
Statement of Cash Flows for the year ended March
31, 2025, Material Accounting Policies, Notes to
the Standalone Financial Statements as at and
for the year ended March 31, 2025 (together
referred to as 'Standalone Financial Statements')
has been prepared and presented in accordance
with the Indian Accounting Standards ('Ind AS')
notified under Section 133 of the Companies
Act, 2013, ('the Act'), read with Rule 3 of the
Companies (Indian Accounting Standards) Rules

2015 and other relevant provisions of the Act as
amended from time to time.

The Standalone Financial Statements of the
Company for the year ended March 31, 2025 were
approved and authorised for issue in accordance
with the resolution of the Board of Directors on
May 09, 2025.

B. Functional and Presentation Currency

The Standalone Financial Statements are
presented in Indian Rupees ('), which is also the
Company's functional currency. All amounts have
been rounded-off to the nearest million, unless
otherwise indicated.

C. Basis of Preparation

The Standalone Financial Statements are
prepared in accordance with Indian Accounting
Standards (Ind AS) under the historical cost
convention on the accrual basis, except for
the following:

- certain financial assets and liabilities which
are measured at fair value (refer accounting
policy regarding financial instruments);

- defined benefit plans - measured at
fair value;

- share-based payments and

- assets and liabilities arising in a
business combination

2.2 Business combination and goodwill

The cost of an acquisition is measured at the fair value
of the assets transferred, equity instruments issued and
liabilities incurred or assumed at the date of acquisition,
which is the date on which control is transferred to the
Company. The cost of acquisition also includes the
fair value of any contingent consideration. Identifiable
assets acquired, liabilities and contingent liabilities
assumed in a business combination are measured
initially at their fair value on the date of acquisition.

Purchase consideration paid in excess of the fair value
of net assets acquired is recognised as goodwill.
Where the fair value of identifiable assets and liabilities
exceed the cost of acquisition, after reassessing the
fair values of the net assets and contingent liabilities,
the excess is recognised as capital reserve.

Transaction costs that the Company incurs in
connection with a business combination such as

finder's fees, legal fees, due diligence fees and
other professional and consulting fees are expensed
as incurred.

Goodwill is initially measured at cost, being the excess
of the aggregate of the consideration transferred,
over the net identifiable assets acquired and liabilities
assumed. If the fair value of the net assets acquired is
in excess of the aggregate consideration transferred,
the Company re-assesses whether it has correctly
identified all of the assets acquired and all of the
liabilities assumed and reviews the procedures used
to measure the amounts to be recognised at the
acquisition date. If the reassessment still results in an
excess of the fair value of net assets acquired over the
aggregate consideration transferred, then the gain
is recognised in OCI and accumulated in equity as
capital reserve. However, if there is no clear evidence
of bargain purchase, the entity recognises the gain
directly in equity as capital reserve, without routing
the same through OCI.

After initial recognition, goodwill is measured at cost less
any accumulated impairment losses. For the purpose
of impairment testing, goodwill acquired in a business
combination is, from the acquisition date, allocated to
each of the Company's cash-generating units that are
expected to benefit from the combination, irrespective
of whether other assets or liabilities of the acquiree are
assigned to those units.

A cash generating unit to which goodwill has been
allocated is tested for impairment at each reporting
period as presented, or more frequently when there
is an indication that the unit may be impaired. If the
recoverable amount of the cash generating unit is
less than it's carrying amount, the impairment loss is
allocated first to reduce the carrying amount of any
goodwill allocated to the unit and then to the other
assets of the unit pro rata based on the carrying
amount of each asset in the unit. Any impairment loss
for goodwill is recognised in the Standalone Statement
of Profit and Loss. An impairment loss recognised for
goodwill is not reversed in subsequent periods. Where
goodwill has been allocated to a cash-generating unit
and part of the operation within that unit is disposed of,
the goodwill associated with the disposed operation is
included in the carrying amount of the operation when
determining the gain or loss on disposal. Goodwill
disposed in these circumstances is measured based
on the relative values of the disposed operation and
the portion of the cash-generating unit retained.

Business combinations have been accounted for using
the acquisition method under the provisions of Ind AS
103, Business Combinations.

Pooling of interest method

Ind AS 103, Business Combinations, prescribes
significantly different accounting for business
combinations which are not under common control
and those under common control.

Business combinations involving entities or businesses
under common control shall be accounted for using
the pooling of interest method.

The pooling of interest method is considered to involve
the following:

i) The assets and liabilities of the combining entities
are reflected at their carrying amounts.

ii) No adjustments are made to reflect fair values or
recognize any new assets or liabilities. The only
adjustments that are made are to harmonise
accounting policies.

iii) The identity of the reserves has been preserved
and appears in the financial information of the
transferee in the same form in which they appeared
in the financial information of the transferor.

2.3 Use of estimates, assumptions and judgements

The preparation of the Standalone Financial Statements
in conformity with Ind AS requires the management to
make estimates, judgements and assumptions that
affect the reported amounts of assets and liabilities,
the disclosure of contingent assets and liabilities on
the date of the Standalone Financial Statements
and the reported amounts of revenues and expenses
for the year reported. Actual results could differ from
those estimates.

Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimates are
changed and in any future periods affected.

Key source of estimation uncertainty and judgements
as at the date of Standalone Financial Statements,
which may cause a material adjustment to the carrying
amounts of assets and liabilities within the next
financial year, is in respect of the following:

a. Impairment of investments

Impairment exists when the carrying value of an
asset or cash generating unit ("CGU") exceeds its
recoverable amount, which is the higher of its fair
value less costs of disposal and its value in use.
The fair value less costs of disposal calculation
is based on available data from binding sales
transactions, conducted at arm's length, for
similar assets or observable market prices less
incremental costs for disposing of the asset.

The value in use calculation is based on a
discounted cash flow ("DCF") model and involves
use of significant estimates and assumptions
including turnover, earning multiples, growth
rates and net margins used to calculate projected
future cash flows, risk adjusted discounted rate,
future economic and market conditions.

b. Fair value measurement of financial instruments

When the fair value of financial assets and
financial liabilities recorded in the balance sheet
cannot be measured based on quoted prices
in active markets, their fair value is measured
using valuation techniques including the DCF
model. The inputs to these models are taken from
observable markets where possible, but where this
is not feasible, a degree of judgement is required
in establishing fair values. Judgements include
considerations of inputs such as liquidity risk,
credit risk and volatility. Changes in assumptions
about these factors could affect the reported fair
value of financial instruments. The policy has been
further explained under note 2.13.

c. Defined benefit plans

The cost of the defined benefit gratuity plan and
other post-employment benefits and the present
value of the gratuity obligation is determined
using actuarial valuation. An actuarial valuation
involves making various assumptions that may
differ from actual developments in the future.
These include the determination of the discount
rate, future salary increases and mortality
rates. Due to the complexities involved in the
valuation and its long-term nature, a defined
benefit obligation is highly sensitive to changes
in these assumptions.

All assumptions are reviewed at each reporting
date. The parameter most subject to change is
the discount rate. In determining the appropriate
discount rate for plans operated in India, the

management considers the interest rates of
government bonds in currencies consistent
with the currencies of the post-employment
benefit obligation.

The mortality rate is based on publicly available
mortality tables. These mortality tables tend
to change only at intervals in response to
demographic changes. Future salary increases
and gratuity increases are based on expected
future inflation rates. The assumptions and models
used for defined benefit plans are disclosed in
note 31.

d. Share-based payments

Estimating fair value for share-based payment
transactions requires determination of the most
appropriate valuation model, which is dependent
on the terms and conditions of the grant. This
estimate also requires determination of the
most appropriate inputs to the valuation model
including the expected life of the share option,
volatility, dividend yield, forfeiture rate and making
assumptions about them. The assumptions and
models used for estimating fair value for share-
based payment transactions are disclosed in
note 32.

e. Useful lives of property, plant and equipment and
intangible assets

The company reviews the useful life and residual
value of property, plant and equipment and
intangible assets at the end of each reporting
period and this reassessment may result in change
in depreciation expense in future periods.

f. Taxes

The Company's Jurisdiction is India. Significant
judgments are involved in determining the
provision for income taxes and tax credits
including the amount expected to be paid or
refunded. The Company reviews the carrying
amount of deferred tax assets at the end of each
reporting period. The policy for the same has
been explained under note 2.20.

g. Business combination

In accounting for business combinations,
judgment is required whether the Company
has control over the entity acquired. Control is
achieved when the Company is exposed, or has
rights, to variable returns from its involvement
with the investee and has the ability to affect

those returns through its power over the investee.
Specifically, the Company controls an investee if
and only if the Company has:

• Power over the investee (i.e., existing rights
that give it the current ability to direct the
relevant activities of the investee)

• The ability to use its power over the investee
to affect its returns.

• Exposure or rights to variable return from its
involvement with the investee.

Generally, there is a presumption that a majority
of voting rights result in control. To support this
presumption and when the Company has less
than a majority of the voting or similar rights of
an investee, the Company considers all relevant
facts and circumstances in assessing whether it
has power over an investee, including:

• The contractual arrangement with the other
vote holders of the investee

• The Company's voting rights and potential
voting rights

• The size of the Company's holding of voting
rights relative to the size and dispersion of the
holdings of the other voting rights holders.

• Right arising from other contractual
arrangements.

Key assumptions in estimating the acquisition
date, fair values of the identifiable assets acquired
and liabilities, identifying whether an identifiable
intangible asset is to be recorded separately
from goodwill.

h. Leases

The Company evaluates if an arrangement
qualifies to be a lease as per the requirements
of Ind AS 116. Identification of a lease requires
significant judgment. The Company uses
significant judgement in assessing the lease
term (including anticipated renewals) and the
applicable discount rate.

The Company determines the lease term as the
non-cancellable period of a lease, together with
both periods covered by an option to extend
the lease if the Company is reasonably certain
to exercise that option; and periods covered by
an option to terminate the lease if the Company

is reasonably certain not to exercise that option.
In assessing whether the Company is reasonably
certain to exercise an option to extend a lease,
or not to exercise an option to terminate a lease,
it considers all relevant facts and circumstances
that create an economic incentive for the
Company to exercise the option to extend the
lease, or not to exercise the option to terminate
the lease. The Company revises the lease term if
there is a change in the non-cancellable period
of a lease.

The discount rate is generally based on the
incremental borrowing rate to the lease being
evaluated or for a portfolio of leases with
similar characteristics.

i. Impairment of goodwill

A cash generating unit to which goodwill has
been allocated is tested for impairment annually,
or more frequently when there is an indication
that the unit may be impaired. The impairment
indicators, the estimation of expected future cash
flows and the determination of the fair value of
CGU (including Goodwill) require the Management
to make significant judgements, estimates and
assumptions concerning the identification and
validation of impairment indicators, fair value
of assets, revenue growth rates and operating
margins used to calculate projected future cash
flows, relevant risk-adjusted discount rate, future
economic and market conditions, etc.

j. Impairment allowance for financial assets

The Company uses a provision matrix to
calculate Expected Credit Losses ('ECL') for trade
receivables. The provision rates are based on
days past due for groupings of various customer
segments that have similar loss patterns (i.e., by
geography, customer type etc.). The provision
matrix is initially based on the Company's historical
observed default rates. At every reporting date,
the historical observed default rates are updated
and changes in the forward-looking estimates
are analysed. The amount of ECLs is sensitive
to changes in circumstances and of forecast
economic conditions.

k. Provisions and contingent liabilities

The Company estimates the provisions that have
present obligations as a result of past events
and it is probable that outflow of resources will
be required to settle the obligations. These

provisions are reviewed at the end of each
reporting period and are adjusted to reflect
the current best estimates. The Company uses
significant judgement to disclose contingent
liabilities. Contingent liabilities are disclosed when
there is a possible obligation arising from past
events, the existence of which will be confirmed
only by the occurrence or non-occurrence of
one or more uncertain future events not wholly
within the control of the Company or a present
obligation that arises from past events where it is
either not probable that an outflow of resources
will be required to settle the obligation or a
reliable estimate of the amount cannot be made.
Contingent assets are neither recognised nor
disclosed in the Standalone Financial Statements.

2.4 Current and Non-current classification

The operating cycle is the time between the acquisition
of assets/inputs for processing and their realisation
in cash and cash equivalents. The Company has
identified twelve months as its operating cycle. The
Company presents assets and liabilities in the 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 period, or

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

All other assets are classified as non-current.

Income tax assets are classified as non-current assets.

A liability is current when it is:

• expected to be settled in the normal
operating cycle.

• held primarily for the purpose of trading.

• due to be settled within twelve months after the
reporting period, or

• not unconditional right to defer the settlement of
the liability for at least twelve months after the
reporting period.

The Company classifies all other liabilities as non¬
current.

2.5 Revenue recognition

The Company generates revenue mainly from
providing online platform services to partner merchants
(including restaurant merchant, grocery merchants and
delivery partners), advertisement services, sale of food,
subscriptions and other platform services.

Revenue is recognised when control of goods and
services is transferred to the customer upon the
satisfaction of performance obligation under the
contract at a transaction price that reflects the
consideration to which the Company expects to be
entitled in exchange for those goods or services.
The transaction price of goods sold and services
rendered is net of any taxes collected from customers
and variable consideration on account of various
discounts and schemes offered by the Company. The
transaction price is an amount of consideration to
which the entity expects to be entitled in exchange
for transferring promised goods or services. Specific
revenue recognition criteria for all key streams of
revenue have been detailed in subsequent sections.

Where performance obligation is satisfied over time,
the Company recognizes revenue over the contract
period. Where performance obligation is satisfied at
a point in time, Company recognizes revenue when
customer obtains control of promised goods and
services in the contract.

Identification of customer:

The Company considers a party to be a customer if
that party has contracted with the Company to obtain
goods or services that are an output of the Company's
ordinary activities in exchange for consideration. Based
on the contractual obligations and the substance of
the transactions, the Company considers the partner
merchants, brands as customers. In select cases,
transacting users and delivery partners are considered
as customers when such users carry out transactions
on the platform where the services are rendered by
the Company, or the Company charges the service
charge for use of technology platform from the users
or delivery partners.

Principle vs agent consideration:

The fulfilment of the order is the responsibility of the
partner merchants, accordingly, the Gross order
value is not recognised as revenue and only the order
facilitation fee/ commission to which the Company is
entitled is recognised as revenue.

The Company considers itself a principal in
arrangements where it controls the goods or
services provided.

In respect of transactions with delivery partners, the
Company is merely a technology platform provider,
connecting delivery partners with the partner
merchants and the consumers. Accordingly, the Gross
delivery fee is not recognised as revenue. The Company
may, from time to time, collect service charge from the
delivery partners which is recognised as revenue.

Revenue from platform services

a. Order facilitation fee:

The Company generates income from partner
merchants for facilitating food/grocery ordering,
dining out and delivery services through its
technology platform.

Income generated from partner merchants, for use
of its platform related services is recognised when
the transaction is completed as per the terms
of the arrangement with the respective partner
merchants, being the point at which the Company
has no remaining performance obligation.

The fulfilment of the order is the responsibility of
partner merchants ; accordingly, the gross order
value is not recognised as revenue, only the order
facilitation fee to which the Company is entitled
is recognised as revenue.

b. Delivery income:

The Company is merely a technology platform
provider connecting delivery partners with the
Restaurant partners and the consumers and
earns revenue from delivery partners in the form
of service charges for use of technology platforms
by them.

c. Advertisement revenue:

Advertisement revenue is generated from the
sponsored listing fees paid by partner merchants
and brands. Advertisement revenue is recognized
when a consumer engages with the sponsored
listing based on the number of clicks. There
are certain contracts, where, in addition to the
clicks, the Company sells online advertisements
which are usually run over a contracted period
of time. Revenue is presented on a gross basis in
the amount billed to partner merchants as the
Company controls the advertisement space.

d. Onboarding fee:

Partner merchants and delivery partners pay one¬
time non-refundable fees to join the Company's
network. These are recognised on receipt in
accordance with terms of agreement entered into
with such relevant partners.

e. Event income:

The company generates income from ticketing
revenue, Brand promotion fee and facilitation
fee by organizing and curating events under
different categories (music, comedy etc). Event
Income is recognized on completion of the
event. The Company considers itself a principal
in this arrangement and accordingly the revenue
is recognised at sale value minus variable
considerations such as discounts, incentives and
other such items offered to the customer.

f. Subscription fee

Revenue from the subscription contracts is
recognized over the subscription period on a
systematic basis in accordance with the terms of
agreement entered with the customer.

g. Service charge:

The Company generates revenue on account
of service charges collected from users/delivery
partners for use of technology platforms to
facilitate placement and delivery of orders.
Service charge recognised by Company is
net of discounts and incentives, if any, given/
offered by the Company on transaction-to-
transaction basis.

h. Income from sale of food:

Revenue from sale of food is recognised when
the performance obligations are satisfied i.e.
when control of promised goods are transferred
to the customer i.e. when the food is delivered
to the customer. The Company considers itself a
principal in this arrangement and accordingly the
revenue is recognised at sale value minus variable
considerations such as discounts, incentives and
other such items offered to the customer.

i. Variable consideration such as discounts and
incentives:

The Company provides various types of incentives,
discounts to users to promote the transactions
on the platform. If the Company identifies the
transacting users as one of their customers for

the services, the incentives/ discounts offered to
the transacting users are considered as payment
to customers and recorded as reduction of
revenue on a transaction-to-transaction basis.
The amount of incentive/ discount in excess of
the income earned from the transacting users is
recorded as advertising and marketing expenses.

When incentives/discounts are provided to
transacting users where the Company is not
responsible for services, the transacting users
are not considered customers of the Company,
and such incentives/discounts are recorded as
advertising and marketing expenses.

j. Other income:

Profit on sale of mutual funds and fair value impact
on mark-to-market contracts are recognised on
transaction completion and or on reporting date
as applicable.

Interest income is recognised using the effective
interest method or time-proportion method,
based on rates implicit in the transaction.

Dividend income is recognized when the
Company's right to receive Dividend is established.

k. Contract balances:

Trade receivables

Trade receivable is the company's right to
consideration that is unconditional (i.e., only the
passage of time is required before payment of
the consideration is due). Refer to accounting
policies of financial assets in section 2.12 for
initial recognition and subsequent measurement
of financial assets.

Contract assets

Contract asset is Company's right to consideration
in exchange for services that the Company
has transferred to a customer where that right
is conditioned on something other than the
passage of time.

Contract liabilities

Contract liability is recognised where the company
has an obligation to transfer goods or services
to a customer for which the entity has received
consideration (or the amount is due) from the
customer. Contract liabilities are recognised as
revenue when the Company performs under the

contract (i.e., transfers the control of the related
goods or services to the customer).

2.6 Property, plant and equipment

Property, Plant and equipment are stated at cost,
net of accumulated depreciation and accumulated
impairment losses, if any. The cost comprises purchase
price, borrowing costs if capitalization criteria are met,
directly attributable cost of bringing the property,
plant and equipment to its location and condition
necessary for it to be capable of operating in the
manner intended by the management.

The cost of an item of property, plant and equipment
shall be recognised as an asset if, and only if it is
probable that future economic benefits associated
with the item will flow to the Company and the cost of
the item can be measured reliably.

When significant parts of plant and equipment are
required to be replaced at intervals, the Company
depreciates them separately based on their specific
useful lives. Likewise, when a major inspection is
performed, its cost is recognised in the carrying amount
of the plant and equipment as a replacement if the
recognition criteria are satisfied. All other repair and
maintenance costs are recognised in the Standalone
Statement of Profit or Loss as incurred. The present
value of the expected cost for the decommissioning
of an asset after its use is included in the cost of
the respective asset if the recognition criteria for
a provision are met. Subsequent expenditure is
capitalised only if it is probable that the future
economic benefits associated with the expenditure
will flow to the Company and the cost of the item can
be measured reliably.

Gains or losses arising from derecognition of the
assets are measured as the difference between the
net disposal proceeds and the carrying amounts of the
assets and are recognized in the Standalone Statement
of Profit and Loss when the assets are derecognized.

Capital work in progress

Amount paid towards the acquisition of property,
plant and equipment outstanding as of each reporting
date and the cost of property, plant and equipment
not ready for their intended use before such date are
disclosed under capital work-in-progress. The capital
work- in-progress is carried at cost, comprising direct
cost, related incidental expenses and attributable
interest. No depreciation is charged on the capital
work in progress until the asset is ready for their
intended use.

2.7 Intangible assets

Intangible assets acquired separately are measured on
initial recognition at cost. The cost of intangible assets
acquired in a business combination are measured at
fair value at the date of acquisition. Following initial
recognition, intangible assets are carried at cost less
any accumulated amortisation and accumulated
impairment losses (if any). While developing an
intangible asset the expenses incurred during the
research phase are charged to Standalone Statement
of Profit and Loss in the period in which the expenditure
is incurred while expenditure incurred during
development phase are capitalized. Subsequent
expenditure is capitalised only when it increases the
future economic benefits embodied in the specific
asset to which it relates. All other expenditure is
recognised in profit or loss as incurred.

Gains or losses arising from derecognition of an
intangible asset are measured as the difference
between the net disposal proceeds and the carrying
amount of the asset and are recognised in the
Standalone Statement of Profit and Loss when the
asset is derecognised.

2.8 Depreciation and amortisation

Depreciation on property, plant and equipment and
amortisation of intangible assets with finite useful lives
is calculated on a straight-line basis over the useful
lives of the assets estimated by the management.

The Company has used the following useful lives to
provide depreciation on Property, plant and equipment
and amortisation of intangible assets:

approximation of the period over which the assets are likely to
be used. Hence, the useful lives for these assets is different from
the useful lives as prescribed under part C of Schedule II of The
Companies Act 2013.

The residual values, useful lives, and methods of
depreciation of property, plant and equipment are
reviewed at the end of each reporting period and
adjusted prospectively, if appropriate.

Depreciation on additions/ disposals is provided on a
pro-rata basis i.e., from/ up to the date on which asset
is ready for use/ disposed of. Individual assets costing
less than INR 5,000 are fully depreciated in the year
of purchase.

Intangible assets with finite lives are 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
adjusted prospectively.

2.9 Impairment

Impairment of Financial assets

The Company assesses at the end of each reporting
period whether a financial asset or a group of financial
assets is impaired. Ind AS 109 ('Financial instruments')
requires expected credit losses to be measured
through a loss allowance. The Company recognises
lifetime expected losses for all contract assets and/or
all trade receivables that do not constitute a financing
transaction. For all other financial assets, expected
credit losses are measured at an amount equal to
the 12 month expected credit losses or at an amount
equal to the lifetime expected credit losses if the credit
risk on the financial asset has increased significantly
since initial recognition.

Credit-impaired financial assets

At each reporting date, the Company assesses whether
financial assets carried at amortised cost and debt
securities at FVTOCI are credit-impaired. A financial
asset is 'credit-impaired' when one or more events that
have a detrimental impact on the estimated future
cash flows of the financial asset have occurred.

Evidence that a financial asset is credit-impaired
includes the following observable data:

• significant financial difficulty of the debtor;

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 Standalone Statement of
Profit and Loss unless the asset is carried at a revalued
amount, in which case, the reversal is treated as a
revaluation increase.

A cash generating unit to which goodwill has been
allocated is tested for impairment annually, or more
frequently when there is an indication that the unit
may be impaired. If the recoverable amount of the
cash generating unit is less than its carrying amount,
the impairment loss is allocated first to reduce the
carrying amount of any goodwill allocated to the
unit and then to the other assets of the unit pro rata
based on the carrying amount of each asset in the
unit. Any impairment loss for goodwill is recognised
in the Standalone statement of Profit and Loss. An
impairment loss recognised for goodwill is not reversed
in subsequent periods.

2.10 Leases

Company as a lessee

The Company's lease assets primarily consist of
leases for buildings. The Company assesses whether
a contract contains a lease at the inception of a
contract. A contract is, or contains, a lease if the
contract conveys the right to control the use of an
identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys
the right to control the use of an identified asset, the
Company assesses whether: (i) the contract involves
the use of an identified asset (ii) the Company has
substantially all of the economic benefits from use of
the asset through the period of the lease and (iii) the
Company has the right to direct the use of the asset.

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 representing
obligations to make lease payments and right-
of-use assets representing the right to use the
underlying assets.

i) 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, lease payments made
at or before the commencement date less any
lease incentives received and an estimate of costs
to be incurred by the lessee in dismantling and
removing the underlying asset, restoring the site
on which it is located or restoring the underlying
asset to the condition required by the terms and
conditions of the lease. Right-of-use assets are
depreciated on a straight-line basis over the
shorter of the lease term or the estimated useful
lives of the assets whichever is earlier.

If ownership of the leased 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 2.9, Impairment of
non-financial assets.

ii) Lease liabilities

At the commencement date of the lease, the
Company recognises 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
(unless they are incurred to produce inventories)
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 as the interest
rate implicit in the lease is not readily determinable.
After the commencement date, the amount of
lease liabilities is increased to reflect the accretion
of interest and reduced for the lease payments
made. In addition, the carrying amount of lease
liabilities is remeasured if there is a modification,
a change in the lease term, a change in the lease
payments (e.g., changes to future payments
resulting from a change in an index or rate used
to determine such lease payments) or a change
in the assessment of an option to purchase the
underlying asset. The Company's lease liabilities
are included in financial liabilities.

iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease
exemption (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 assets that are
considered to be low value. Lease payments on
short term leases and leases of low-value assets
are recognised as expenses on a straight-line
basis over the lease term.

Company as a lessor

Leases in which the Company does not transfer
substantially all the risks and rewards incidental to
ownership of an asset are classified as operating
leases. Rental income arising is accounted for on
a straight-line basis over the lease terms and is
included in revenue in the Standalone Statement
of Profit or Loss due to its operating nature. Initial
direct costs incurred in negotiating and arranging
an operating lease are added to the carrying
amount of the leased asset and recognised over
the lease term on the same basis as rental income.
Contingent rents are recognised as revenue in the
period in which they are earned.

2.11 Cash and cash equivalents

The Company considers all highly liquid financial
instruments, which are readily convertible into known
amounts 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. Cash and cash equivalents
consist of balances with banks which are unrestricted
for withdrawal and usage.

2.12 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 and liabilities are recognised when
the Company becomes a party to the contract that
gives rise to financial assets and liabilities. Financial
assets and 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) are added
to or deducted from the fair value measured on initial
recognition of financial asset or financial liability.

a. Financial assets

Financial assets are recognised when the
Company becomes a party to the contractual
provisions of the instrument.

Initial recognition and measurement

On initial recognition, a financial asset is
recognised at fair value. In case of financial assets
which are recognised at fair value through profit
and loss (FVTPL), its transaction cost is recognised
in the Standalone Statement of Profit and Loss.
However, trade receivables are measured at
transaction price. In other cases, the transaction
cost is attributed to the acquisition value of the
financial asset.

Financial assets are subsequently classified and
measured at:

• Amortised cost

• Fair value through other comprehensive
income (FVTOCI)

• Fair value through profit and loss (FVTPL)

Financial assets are not reclassified subsequent
to their recognition, except during the period
the Company changes its business model for
managing financial assets.

Financial assets at amortised cost

The 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 on the
principal amount outstanding.

After initial measurement, such financial
assets are subsequently measured at
amortised cost using the effective interest
rate (EIR) method. 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.
The EIR amortisation is included in finance
income in the Standalone Statement of Profit
and Loss. The losses arising from impairment
are recognised in the Standalone Statement
of Profit and Loss. This category generally
applies to trade and other receivables.

Financial assets at FVTOCI

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

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

b) 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

Further, in cases where the Company has made
an irrevocable election based on its business
model, for its investments which are classified as
equity instruments. Dividends are recognised as
income in the statement of profit and loss unless
the dividend clearly represents a recovery of part
of the cost of the investment. Other net gains
and losses are recognised in OCI and are not
reclassified to the statement of profit and loss.

Financial assets at FVTPL

Financial assets are measured at fair value
through profit or loss unless they are measured
at amortised cost or at fair value through other
comprehensive income on initial recognition.
The transaction costs directly attributable to the
acquisition of financial assets at fair value through
profit or loss are immediately recognised in the
statement of profit and loss.

In addition, the Company may elect to designate
a Financial asset, which otherwise meets
amortized cost or FVTOCI criteria, as at FVTPL if
doing so reduces or eliminates a measurement
or recognition inconsistency (referred to as
'accounting mismatch').

Investment in subsidiaries

Equity investments in subsidiaries are carried at
cost less accumulated impairment losses, if any.
Where an indication of impairment exists, the
carrying amount of the investment is assessed
and written down immediately to its recoverable
amount. On disposal of investments in subsidiaries,
the difference between net disposal proceeds
and the carrying amounts are recognised in the
Statement of Profit and Loss.

Derecognition

A financial asset (or, where applicable, a part of
a financial asset or part of a Company of similar
financial assets) is primarily derecognised (i.e.,
removed from the balance sheet) when:

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

b) The Company has transferred its rights to
receive cash flows from the asset or has
assumed an obligation to pay the received
cash flows in full without material delay
to a third party under a 'pass-through'
arrangement; and either

• the Company has transferred
substantially all the risks and rewards
of the asset, or

• the Company has neither transferred nor
retained substantially all the risks and
rewards of the asset but has transferred
control of the asset.

When the Company has transferred its rights
to receive cash flows from an asset or has
entered into a pass-through arrangement,
it evaluates if and to what extent it has
retained the risks and rewards of ownership.
When it has neither transferred nor retained
substantially all the risks and rewards of
the asset, nor transferred control of the
asset, the Company continues to recognise
the transferred asset to the extent of the
Company's continuing involvement. In that

case, the Company also recognises an
associated liability. The transferred asset and
the associated liability are measured on a
basis that reflects the rights and obligations
that the Company has retained.

b. Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss or at amortised cost (loans
and borrowings, payables), as appropriate.

All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings
and payables, net of directly attributable
transaction costs.

The Company's financial liabilities include
trade and other payables, lease liabilities and
bank overdrafts.

Subsequent measurement

The measurement of financial liabilities depends
on their classification, as described below:

Financial liabilities at fair value through profit or
loss

Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading
if they are incurred for the purpose of repurchasing
in the near term.

Gains or losses on liabilities held for trading are
recognised in the profit or loss.

Financial liabilities designated upon initial
recognition at fair value through profit or loss
are designated as such at the initial date of
recognition, only if the criteria in Ind AS 109 are
satisfied. For liabilities designated as FVTPL, fair
value gains/ losses attributable to changes in
own credit risk are recognized in OCI. These gains/
losses are not subsequently transferred to Profit
and Loss. However, the Company may transfer
the cumulative gain or loss within equity. All other
changes in fair value of such liability are recognised
in the Standalone Statement of Profit or Loss. The
Company has not designated any financial liability
as at fair value through profit and loss.

Loans and borrowings

After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and
losses are recognised in profit or loss when the
liabilities are derecognised as well as through
the EIR amortisation process. 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. The EIR amortisation
is included as finance costs in the Standalone
Statement of Profit and 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. The difference in the
respective carrying amounts is recognised in the
Standalone Statement of Profit or Loss.

c. 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.

2.13 Fair value measurement

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:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most
advantageous market for the asset or liability

The principal or the most advantageous market must
be accessible by the Company

Fair value hierarchy:

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.

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

For assets and liabilities that are recognised in the
Standalone Financial Statements on a recurring
basis, the Company determines whether transfers
have occurred between levels in the hierarchy by re¬
assessing categorisation (based on the lowest level
input that is significant to the fair value measurement
as a whole) at the end of each reporting year.

2.14 Inventories

Inventory is stated at the lower of cost and net
realisable value. Cost of inventories comprise of all
cost of purchase and other cost incurred in bringing
the inventories to their present location and condition.
Cost is determined using a weighted average method.
Net realisable value is the estimated selling price in
the ordinary course of business, less estimated costs
of completion and the estimated costs necessary to
make the sale.

2.15 Borrowing cost

Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily
takes a substantial period of time to get ready for its
intended use or sale are capitalised as part of the cost
of the asset. All other borrowing costs are expensed
in the period in which they occur. Borrowing costs
consist of interest and other costs that an entity incurs
in connection with the borrowing of funds. Borrowing
cost also includes exchange differences to the extent
regarded as an adjustment to the borrowing costs.

2.16 Share issue expenses

Incremental costs directly attributable to the issue of
equity shares will be adjusted with securities premium.

2.17 Foreign currency

The functional currency of the Company is the Indian
Rupee. Transactions in foreign currencies are initially
recorded by the respective entities of the Company at
their respective functional currency spot rates, at the
date 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. Exchange
differences arising on settlement or translation of
monetary items are recognised as income or expenses
in the period in which they arise.

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.

2.18 Share based payments

The Company measures compensation cost relating to
employee stock options plans using the fair valuation
method in accordance with Ind AS 102, Share-Based
Payment. Compensation expense is amortized over
the vesting period as per graded vesting method.
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
recognised, together with a corresponding increase
in Share based payment reserve in other equity, over
the period in which the performance and/or service
conditions are fulfilled in employee benefits expense.
The cumulative expense recognised 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.

When an award is cancelled by the Company or by
the counterparty, any remaining element of the fair
value of the award is expensed immediately through
the Standalone Statement of Profit and Loss.

2.19 Employee benefits

Employee benefits consist of Salaries, wages, bonus,
contribution to provident and other funds, share based
payment expense and staff welfare expense.

Defined contribution plans

The Company's contributions to defined contribution
plans (provident fund and pension fund ) are recognized
in Standalone Statement of Profit and Loss when the
employee renders related service.

Defined benefit plans

Gratuity, which is a defined benefit plan, is accrued
based on an independent actuarial valuation, which is
carried out based on projected unit credit method as
at the balance sheet date. The Company recognizes
the net obligation of a defined benefit plan in its
Standalone Statement of Balance Sheet as liability.

Actuarial gains and losses through re-measurements of
the net defined benefit liability/ (asset) are recognized
in other comprehensive income. In accordance
with Ind AS, re-measurement gains and losses on
defined benefit plans recognised in OCI are not to be
subsequently reclassified to the Standalone Statement
of Profit and Loss.

Net interest is calculated by applying the discount
rate to the net defined benefit liability or asset. The
Company recognises the following changes in the
net defined benefit obligation as an expense in the
Standalone Statement of Profit and Loss:

• Service costs comprising current service
costs, past-service costs, gains and losses on
curtailments and non-routine settlements; and

• Net interest expense or income.

Short-term employee benefits

Short-term employee benefits expected to be paid
in exchange for the services rendered by employees
are recognised during the year when the employees
render the service. Compensated absences, which
are expected to be utilised within the next 12 months,
are treated as short-term employee benefits. The
Company measures the expected cost of such
absences as the additional amount that it expects
to pay as a result of the unused entitlement that has
accumulated at the reporting date.

Long-term employee benefits

Compensated absences which are not expected to
occur within twelve months after the end of the period
in which the employees render the related services
are treated as long-term employee benefits for
measurement purpose. Such long-term compensated
absences are provided for based on the actuarial
valuation using the projected unit credit method at
the year end, less the fair value of the plan assets out
of which the obligations are expected to be settled.
Actuarial gains/losses are immediately taken in Other
comprehensive income (OCI) and are not deferred.

The Company presents the entire compensated
absences balance as a current liability in the
Standalone Financial Statements, since it does not
have an unconditional right to defer its settlement for
twelve months after the reporting date.

2.20 Taxes on income

Income tax expense comprises current tax expense
and the net change in the deferred tax asset or
liability during the year. Current and deferred tax are
recognised in the Standalone Statement of Profit
and Loss, except when they relate to items that are
recognised in other comprehensive income or directly
in other equity, in which case, the current and deferred
tax are also recognised in other comprehensive income
or directly in equity, respectively.

Current income tax

Current income tax for the current and prior periods are
measured at the amount expected to be recovered
from or paid to the taxation authorities based on the
taxable income for that period. The tax rates and tax
laws used to compute the amount are those that are
enacted or substantively enacted as at the balance
sheet date.

Current income tax relating to items recognised outside
profit or loss is recognised outside profit or loss (either
in OCI or in equity).

The Company offsets current tax assets and current
tax liabilities, where it has a legally enforceable right
to set off the recognized amounts and where it intends
either to realise the asset and settle the liability on a
net basis or simultaneously.

Deferred income tax

Deferred income tax is recognised using the balance
sheet approach, deferred tax is recognized on
temporary differences at the balance sheet date
between the tax bases of assets and liabilities
and their carrying amounts for financial reporting
purposes, except

- when the deferred income tax arises from the
initial recognition of goodwill or an asset or liability
in a transaction that is not a business combination
and affects neither accounting nor taxable profit
or loss at the time of the transaction.

- In respect of taxable temporary differences
associated with investments in subsidiaries,
associates and interest in joint ventures, 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 income tax assets are recognized for all
deductible temporary differences, carry forward of
unused tax credits and unused tax losses, 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 income tax assets is
reviewed at each balance sheet 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 income tax asset to be utilized.

Deferred income tax assets and liabilities are measured
at the tax rates that are expected to apply in the year
when the asset is realized or the liability is settled,
based on tax rates (and tax laws) that have been
enacted or substantively enacted at the balance
sheet date.

Deferred tax assets and liabilities are offset if there is a
legally enforceable right to offset current tax liabilities
and assets, and they relate to income taxes levied by
the same tax authority on the same taxable entity,
or on different tax entities, but they intend to settle
current tax liabilities and assets on a net basis or their
tax assets and liabilities will be realised simultaneously.

Minimum alternate tax (MAT) paid in a year is charged
to the Standalone Statement of Profit and Loss as
current tax for the year. The deferred tax asset is
recognised for MAT credit available only to the extent
that it is probable that the Company will pay normal
income tax during the specified period, i.e., the period
for which MAT credit is allowed to be carried forward.
In the year in which the Company recognizes MAT
credit as an asset, it is created by way of credit to the
Standalone Statement of Profit and Loss and shown as
part of deferred tax asset. The Company reviews the
"MAT credit entitlement" asset at each reporting date
and writes down the asset to the extent that it is no
longer probable that it will pay normal tax during the
specified period.